THE ENERGY FACTOR OF THE EUROPEAN ECONOMIC WELL-BEING

Abstract

The article assesses the consequences of the reduction in Russian energy supplies to the EU and the ensuing energy inflation for the development of the economy and the labor market of its member states. It has been established that the rejection of the «physical» economy at the stage of development of the post-industrial economy and the politically biased and thoughtless actions of the EU authorities in the period from 2014 to 2022 led to the development of a negative scenario in the economic development of the region. Rising energy prices have become one of the main factors destabilizing the economies of individual EU member states and leading to job cuts in a number of industries. At the same time, the efforts taken by the EU authorities to stabilize the situation are insufficient, especially in the face of growing competition from the US, which is the main beneficiary of the energy crisis in the EU. On the one hand, the United States offers more favorable conditions for European TNCs to work on their territory, and, on the other hand, it increases LNG supplies to the EU, effectively controlling electricity prices. Violation of the EU’s energy security could result in serious socio-economic consequences in the region.