Europe’s energy crisis isn’t over.

Contact us: info@strategic-culture.su

Europe’s energy crisis isn’t over. Gas prices remain stubbornly high across the continent as Europeans confront a long winter.

In response to an energy crisis stemming from Europe’s continued reliance on imported liquefied natural gas against the backdrop of ongoing global geopolitical volatility, Europe’s leaders are pushing to diversify the bloc’s energy mix. While this means that Europe is rapidly expanding its renewable energy capacity, it also marks a significant return to the world’s dirtiest fossil fuel – coal.

Earlier this year, when the United States and Israel began an offensive in Iran and thereby instigated the disruption of one-fifth of the world’s oil and gas trades, Europe awakened to realize that it had sleepwalked into yet another energy crisis – its third in just four years. “We swore we’d learn. We promised things would change, but here we are,” a ‘highly frustrated European diplomat’ was recently (anonymously) quoted by the BBC.

“Instead of concentrating on much-needed long-term plans – about how to make Europe more competitive in this increasingly volatile world, [European] prime ministers and presidents are now in a panic over [energy] prices, worried about angry voters and scrambling for short-term solutions,” the source continued. “Just like the crisis after Russia’s full-scale invasion of Ukraine. Different conflict. Same European divisions; same dilemmas over energy. We can’t keep going round in these circles. Something’s got to give.”

Now, half a year after the outbreak of the war in Iran and the initial closure of the Strait of Hormuz, Europe is still grappling with the fallout as gas prices remain brutally high. Just this month, gas prices hit their highest mark in three years, soaring above €80 ($90.98) per megawatt hour.

Prices are so high, in fact, that coal-fired power has become cheaper than gas-fired power in Europe for the first time in years. This has pushed many European nations, and especially the European Union’s largest economy, Germany, back to coal. And, worryingly, experts contend that that trend will continue for years to come.

“Coal is expected to remain cheaper than gas for power generation through next year and potentially until March 2028,” Reuters reported earlier this week, based on a conversation with Marta Wroniszewska, an analyst at Veyt. “Longer-dated gas prices indicate traders expect supply constraints to persist.”

However, there are notable limits to coal’s growth potential in Europe. Years of policy aimed at phasing down and phasing out coal have left the continent with dramatically fewer coal-fired power plants than it had previously. In 1990, the European Union derived more than a third of its electricity production from coal. By 2025, that share had fallen to just 9.2 percent, according to data from Eurostat. So while Europe’s remaining coal plants will receive a windfall from the current gas prices, there is a ceiling to coal’s potential rebound in the region.

Outside of Europe, however, it’s a different story. Globally, coal is still the single-biggest source of power production. And while Europe is shutting down its coal-fired capacity, many emerging economies are continuing to build theirs up, with particularly strong growth from the Philippines, Indonesia, and other rapidly developing countries across Asia. Not coincidentally, this was also the region hit hardest by the closure of the Strait of Hormuz.

While coal is cheap, abundant, and seen as a critical tool for enabling economic development in poor countries, the continuously extending timeline of coal’s reign presents trade-offs that far outweigh the benefits. Coal is the single largest driver of global warming, responsible for about 40 percent of all greenhouse gas emissions. However, it’s not all bad news – coal’s comeback is happening in tandem with a major global increase in clean energy resources. Increasingly, renewable energies are being adopted for their role in a more energy-secure future, and are seen as a critical buffer against the next global energy crisis.

Unlike natural gas, oil, and coal, “Wind and solar cannot be embargoed, blockaded, or shut off by a foreign power,” David Frykman, General Partner at Stockholm-based venture capital group Norrsken, wrote in an op-ed for Fortune earlier this year. “Every terawatt-hour of domestic renewable generation is a terawatt-hour that no adversary can weaponize.”

Lula has failed to meet the demands of the people and is now facing the consequences.

Contact us: info@strategic-culture.su

The first round of Brazil’s presidential election ended with candidate Flávio Bolsonaro (PL) ahead of Lula da Silva (PT), 47% to 45%. In the parliamentary elections, the PT and the left suffered overwhelming defeats across the country, indicating growing rejection of the left among ordinary Brazilians. Now, with only a few weeks remaining before the final decision on who will govern the country from next year onward, the question remains open: what factors will voters take into consideration when choosing the president?

The Lula government has taken several measures considered “desperate” attempts to reverse its popularity crisis and regain support in the final stretch of the election. Expanding social programs is one such measure, but its political effectiveness is becoming increasingly questionable. After decades of income redistribution under PT governments, without this producing any real transformation in the situation of working people, public perceptions of these policies have become increasingly negative.

Lula’s central problem is that a significant portion of the electorate appears less interested in new palliative measures and more concerned with problems that remain present in their daily lives. Public security, employment, income, inflation, and the quality of public services have a much more direct impact on the population than the major debates promoted by the government.

Security is perhaps the clearest example. The expansion of criminal organizations, the territorial growth of organized crime, and the perception of impunity have made violence one of the country’s main concerns. For millions of Brazilians, this is no longer an abstract discussion about security policy. It is a daily reality that determines where people can live, work, travel, and even open a business – particularly in major urban centers such as Rio de Janeiro, where organized crime is estimated to control between 60% and 70% of the city’s total territory.

In this context, proposals associated with the progressive cultural agenda may also carry significant electoral costs for the left. Brazilian debates over gender, identity, education, and minority rights have increasingly reproduced political conflicts originating in the United States and Europe. A considerable portion of the population, however, does not identify with this agenda and believes that the state should concentrate its efforts on more urgent material problems.

This helps explain why the runoff will likely be determined much more by domestic issues than by foreign policy – which is the aspect of the Lula government most frequently praised by the international expert community. BRICS, Palestine, or Brazil’s position toward the United States may mobilize politically engaged sectors of society, but they are unlikely to constitute the main concerns of the average voter when deciding how to vote.

Foreign policy has strategic importance for the Brazilian state. Ordinary citizens, however, tend to evaluate it through its concrete effects on their own lives. A foreign policy regarded as successful will not, by itself, compensate for perceptions of insecurity, unemployment, or deterioration in public services. As the Lula government avoids directly confronting the problem of organized crime, support may naturally grow for a right-wing camp that welcomes the United States’ designation of Brazilian criminal factions as terrorist organizations.

The same applies to the aforementioned income-transfer programs. Such mechanisms may have an important social function in a country marked by profound inequalities, but their use as the principal instrument of social policy has serious limitations. Transferring income can alleviate poverty, but it does not automatically create skilled employment, increase productivity, or rebuild national industry. Instead, it can contribute to the emergence of a large precarious population dependent on government assistance. When welfare becomes a permanent substitute for development policies, the structural problem remains.

This is precisely where the electoral dispute enters a decisive phase. Voters will have to choose between different proposals for addressing problems that have not disappeared in recent years. The ability to present convincing answers on security, employment, income, and social order may carry greater weight than speeches about major geopolitical projects.

The first-round result also demonstrates that Brazil’s right was able to transform domestic discontent into electoral strength. Flávio Bolsonaro’s lead and the composition of the new Congress indicate significant demand for change. This does not mean that all these voters share the same views on the economy, foreign policy, or cultural issues. It means, above all, that dissatisfaction has become sufficiently broad to alter the country’s political balance.

In the remaining weeks of the campaign, therefore, the fundamental question will be whether the government can convince voters that its policies offer lasting solutions, or whether the perception will prevail that it has adopted temporary measures to manage problems that remain unresolved.

Talking about gender, human rights, or Palestine will definitely not help Lula secure reelection.