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EU Unveils Energy Plan To Cut Costs And Reduce Gas Dependence

by THEFUTURE.TEAM
February 21, 2025

The European Union is accelerating efforts to secure energy independence and shield industries from volatile energy prices. Its latest strategy focuses on fast-tracking renewable energy development, reshaping the gas market, and cutting reliance on Russian energy imports.

Key Initiatives: Breaking Free From Russian Gas

The EU remains focused on diversifying its energy supply, particularly in reducing reliance on Russian gas. Although pipeline imports have plummeted in recent years, liquefied Russian gas (LNG) shipments to the bloc actually increased in 2024. Brussels aims to eliminate all Russian energy imports by 2027.

Next week, the European Commission will unveil a sweeping industrial support package, including plans to strengthen ties with LNG suppliers and expand infrastructure for exporting LNG. Strict market regulations will also be introduced to curb speculative trading that leads to price spikes.

Quote Of The Moment

“Instead of using taxpayers’ money to pay for Russian gas while the proceeds go directly to Vladimir Putin’s coffers, the EU should do everything possible to start producing its own energy. However, there is still a need for gas, and we will have to find sources other than Russia. This could also mean more imports from the US,” said EU Energy Commissioner Dan Jorgensen.

Europe’s New Energy Model

The US has become the EU’s primary LNG supplier, especially after the 2022 war in Ukraine drastically cut Russian gas flows. The European Commission does not purchase gas directly but is working on new strategies to secure stable, long-term LNG contracts modeled after Japan’s approach—where Tokyo finances export infrastructure to lock in favorable agreements.

Under EU law, existing gas contracts must end by 2049 to meet the bloc’s 2050 net-zero emissions goal. While renewable energy adoption is expanding, electricity prices remain linked to the cost of gas. The Commission is now preparing a demand-pooling mechanism, allowing European companies to negotiate collective LNG supply deals to hedge against market volatility.

The final version of the energy package will be officially released on February 26, with potential revisions before publication.

Navigating Tensions With The US

The EU’s energy transition is further complicated by geopolitical tensions with Washington. President Donald Trump has warned of trade tariffs if Europe does not increase oil and gas imports from the US. With EU-US trade reaching a record $1.29 trillion in 2021, any disruptions could have widespread economic consequences.

Trump’s administration is also ramping up tariffs on key European exports, including steel, aluminum, cars, and pharmaceuticals. Expected retaliatory measures from the EU could escalate tensions, further challenging Europe’s efforts to balance energy security with trade relations.

European Central Bank Report Highlights Stable Inflation and Economic Outlook

by THEFUTURE.TEAM
October 29, 2025

Overview Of Inflation Trends

The latest European Central Bank survey shows a slight decline in median inflation expectations over the next 12 months, decreasing from 2.8% in August to 2.7% in September. Despite this minor adjustment, consumer perceptions of past 12-month inflation have held steady at 3.1% for the eighth consecutive month. Long-term projections for three- and five-year inflation remain stable at 2.5% and 2.2% respectively.

Consumer Expectations Drive Income And Spending Projections

Across the board, expectations for nominal income growth over the upcoming year have remained consistent at 1.1%. However, there is a noticeable shift in spending behavior: while perceived nominal spending growth for the past year slipped slightly to 4.9% from 5.0%, expectations for spending growth over the next 12 months rose to 3.5%. Notably, lower income groups continue to forecast marginally higher spending increases compared to their higher income counterparts.

Stability In Economic And Labour Market Outlook

Economic growth expectations are modestly pessimistic, with respondents forecasting a contraction of -1.2% over the next 12 months. Concurrently, anticipated unemployment levels remain unchanged at 10.7% a year ahead, though the outlook varies by income, with lower income households expecting unemployment rates as high as 12.7%, while higher income groups maintain expectations around 9.4%. Overall, the slight difference between current and future unemployment suggests a broadly stable labor market outlook.

Housing Market And Credit Conditions

The survey also reveals an upswing in expectations related to the housing market. Home price growth expectations have edged higher to 3.5%, and anticipated mortgage interest rates have risen modestly to 4.6%. Similar to other metrics, expectations vary by income, with lower income households expecting higher mortgage rates. In recent months, a marginal decline in reported credit tightening over the past 12 months contrasts with a renewed forecast of tighter credit conditions in the forthcoming year.

Conclusion

The ECB’s latest findings underscore the delicate balance between stable long-term economic forecasts and short-term adjustments in consumer expectations. The slight dips in inflation expectations, alongside stable perceptions of past inflation, delineate a marketplace that is both cautious and measured. As income, spending, and housing market metrics continue to evolve, these indicators provide critical insights for policymakers and investors navigating an increasingly complex economic landscape.

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