european-household

Russia-Ukraine crisis: The (energy) price of war for European households

You will find here our analyse on the impact of Russia-Ukraine crisis on European households.
We expect at least +30% increase in the energy bill for 2022, hitting low-income households in the UK and Germany the hardest. For 2022, we calculate a total energy bill per household of EUR3400 in Germany, over EUR3000 in the UK, EUR2800 in France and just below EUR2000 in Italy and Spain.
In the worst-case scenario where energy supply is partially cut and energy prices increase by an additional 70% (20% probability), disposable income for the average European household would be cut by an additional -2.5pp. This would bring the total cost to more than -4pp in the UK and Germany, equivalent to an additional cost of more than EUR1200 per household.
Without further state support measures, the resulting reduction in consumer spending could cut GDP growth by -0.6pp in the UK, -0.5pp in Germany and -0.4pp in France, Italy and Spain. In the worst case scenario, the cost on growth from lower consumer spending could reach up to -1.1pp.
In the worst-case scenario, the additional support needed could reach EUR75bn in Germany and EUR50bn in the UK and France. Acting on both demand (i.e.; rationing of non-essential activities) and supply (i.e. strategic reserves) could help: a supply cut for non-energy uses of oil & gas would increase the supply for energy use by +10% in Germany, +9% in France and about +6% for both Italy, Spain and the UK.

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Aug 09, 2022

Global economy slows down

The growth of the world economy is slowing down further. This is evident from our report on the economic outlook. Read the full report here.

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Jul 20, 2022

Germany will be climate-neutral in 2035

Germany is heavily dependent on Russia for gas, oil and coal. The country wants to put an end to it as soon as possible. Read the full report.

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Jul 15, 2022

Increase of European plane tickets

Significant more expensive plane tickets and great uncertainty linked to perpetual cancellations. This is what European travelers can expect in the future.

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