Former Swedish Minister Warns Energy Crisis Could be ‘Far Greater’ than Both Pandemic And 2008 Financial Crisis

A former Swedish finance minister has warned that the shutdown of the Nord Stream 1 natural gas pipeline by Russia could lead to a crisis worse than both the pandemic and the 2008 financial crisis.

Anders Borg, a former Swedish finance Minister, is said he is concerned about the effect the shutdown will have on not just Europe but the global economy overall. “There are two serious risks. One is that Russia escalates and keeps the gas shut off and perhaps also takes action against the oil market. The other risk is of course that we will have an acute energy shortage in Germany. Their central bank has said that perhaps 65-85 per cent of the energy-intensive industry may have to be closed over the winter,” Borg said.

“It would cause an industrial crisis of historic dimensions, perhaps far greater than both covid and the financial crisis. That risk is on the map,” he added, broadcaster SVT reports.

Nordea chief economist Annika Winsth also commented on the Russian shutdown of the gas pipeline, which may be shut down indefinitely, saying that Europe is unprepared for the consequences of the shutdown.

“Europe is exposed to a shock, an energy shock, and the systems we have when trading electricity are not rigged for the price jumps we have seen recently,” Winsth said.

“It’s a completely different game plan and now you have to be careful and wise in this. I think that most households and companies haven’t really realized how difficult this autumn and winter will be,” she added.

The warnings come as Germany has already enacted strict energy-saving measures such as curfews on illuminated advertising, cutting off heat in corridors of public buildings, and cutting back on warm water. More measures are set to come into force in October with Economy Minister Robert Habeck stating the measures could cut gas consumption by around 2 to 2 1/2 per cent.

A €65 billion (£56.2 billion/$65 billion) aid package has also been announced by the German government in an attempt to ease the burden of soaring energy costs on German consumers.

Follow Chris Tomlinson on Twitter at @TomlinsonCJ or email at ctomlinson(at)breitbart.com.