Cummings silences Brexit doom-mongers and reveals KEY reason UK ‘will gain so much’

Russian gas 'could' be used to 'derail European Unity' says expert

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The former Chief Adviser to Prime Minister Boris Johnson is a staunch Brexiteer and was formerly director of Vote Leave, a group which successfully executed the 2016 referendum campaign for the UK’s exit from the European Union. Now he has shut-down Brexit critics and revealed a central reason why the country will greatly benefit over the coming years from not being tied to Brussels’ rules.

Dominic Cummings tweeted: “Another excellent reason why elites wrong on Brexit, why UK will gain so much in coming years from being less entangled in its dysfunction, like on vaccines.”

He was referring to an opinion article from Bloomberg energy and commodities columnist Javier Blas, entitled: ‘Europe’s Energy Crisis Will Cost You $200 Billion — Probably More’.

The continent is suffering from a crippling energy crisis as a result of Russia’s ongoing and brutal war in Ukraine – driving up inflation to massive highs.

Annual maintenance work on the Nord Stream 1 gas line into Europe is due to be completed on Wednesday, but there are growing fears Vladimir Putin could turn off the supply in retaliation to the hard sanctions the EU has hit Russia with.

As a result of spiralling inflation and a struggling euro against the US dollar, there are also growing fears the Eurozone area could plunge into an extremely damaging recession.

Bloomberg columnist Mr Blas claimed in his article that “when the dust settled” the total bill for the European energy market will “easily top” $200billion (£169.4billion).

Worse still, he warned that is just a “rough estimate” and doesn’t cover “the worst-case scenario of both Russia fully shutting down natural gas supply to Europe and a colder-than-average winter”.

Mr Blas took a swipe at leading European politicians for failing to “grasp” with the magnitude of the coming crisis and its costs, but reserved praise for Emmanuel Macron and Olaf Scholz as “the only ones that appear to get it now”.

He wrote: “The EU will have to decide on a big energy savings program, including a public campaign to support it, and make clear that nations will help each other by sharing the little gas that will be available.

“This means inviting the UK, Switzerland and Norway to the table in Brussels too.

“As forward natural gas and electricity prices continue to climb, more European utilities and energy retailers will struggle.

“The only chance of survival for the utilities is to pass the huge jump in wholesale prices onto their customers.

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“But that only moves the bailout down the chain, as households and businesses would then face unaffordable bills and need government help.”

The expert continued: “Ultimately, taxpayers will bear the cost — either directly and immediately, via higher retail power and gas prices, or later, and over the years, via higher taxes to pay for the bailouts.

“European Governments should be upfront about the costs: They can win the argument that this is money well spent to stop Vladimir Putin.”

He said how since the start of the Ukraine war five months ago, Putin has cut gas supply to Germany by about 60 percent, and said utility firm Uniper is losing around €30million (£25.4million) each day having to buy the same gas in the “spot market”.

Mr Blas warned if Putin does completely shut down the flow of gas, the utility’s daily loses will surge to around €100million (£84.7million) a day, or more than €35billion (£29.7billion) a year.

Germany’s Government would therefore come under huge pressure to provide that sum just to keep millions of people’s power on.

The expert concluded: “If the utilities are allowed to pass higher gas costs onto the consumers, Goldman Sachs reckons that European households will have to pay €470 per month for electricity and gas, up 290 percent from the typical cost in mid-2020.

“That’s clearly unaffordable to many, perhaps most, and a much bigger bailout will be needed to help consumers get by.”

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