Many factories in Europe have shut down their operations due to the energy crisis, which could deteriorate economies in recovery.
Energy prices in Europe soared to record highs as gas from Russia dwindled, and France unexpectedly shut down its nuclear power plants.
While inflation in the region, especially in Germany and Spain, has reached the peaks of 30 years, it is feared that this increase in prices will increase the risk of stagflation and hinder economic growth.
The new omicron variant also threatens the recovery in national economies. Leaders such as Italian Prime Minister Mario Draghi say governments must act quickly to protect consumers against rising costs.
Experts stated that gas prices are negative for both households and companies and harm economic activity.