199,983 companies went bankrupt in Europe because of the energy crisis in 2022

[Hispo]

Since the beginning of the energy crisis, I knew that we were going to see some businesses going down to their closure in Europe. But I first assumed that those companies were going to have something to do with the importation and refining of natural gas.

Nonetheless, after giving a look to the massive increase of the electricity in Europe, specially during the coldest days of last Winter. I would not be surprised if those companies had nothing to do with energy and yet could not pay their operative costs, and electricity bill.   

It is sad when people who have no say on political matters, gets affected this way.

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[mikeywith]

This is a classic approach, or the concept of the Russian world - lie always, lie everywhere, lie with or without reason! The main thing is to lie!

I couldn't disagree, but I think modern western governments are more advanced in the "lying game" than anyone else.

- for the local population in Russia, you can give out any nonsense in the media at all

You can do the same thing in the U.S, you can lie to someone who works from 8 to 5, take their tax money, and spend it in a war 7000 miles away from home, and they will still believe that an 18-year-old kid living on a mountain is an existential threat to their country.

Of course, this is pretty universal, the Chinese do the same thing, African governments do the same thing, it's very important to realize that ALL governments manipulate their own people, by not realizing that and thinking that all governments are lying except yours -- it would only prove that you have had a successful brainwash.

[Sithara007]

Since the beginning of the energy crisis, I knew that we were going to see some businesses going down to their closure in Europe. But I first assumed that those companies were going to have something to do with the importation and refining of natural gas.

Nonetheless, after giving a look to the massive increase of the electricity in Europe, specially during the coldest days of last Winter. I would not be surprised if those companies had nothing to do with energy and yet could not pay their operative costs, and electricity bill.   

It is sad when people who have no say on political matters, gets affected this way.

Europe brought this crisis on to themselves with their stupid policies. Nuclear energy is the cheapest and most environmentally friendly form of energy and for the last 1-2 decades the European governments have been trying to close down nuclear powerplants and replace them with energy from more polluting sources such as lignite and coal fired powerplants. And the joke is that Green Party is spearheading this campaign. The propaganda against nuclear energy has resulted in increased prices of electricity, closure of industries and more importantly, massive pollution to the environment.

[Hispo]

Since the beginning of the energy crisis, I knew that we were going to see some businesses going down to their closure in Europe. But I first assumed that those companies were going to have something to do with the importation and refining of natural gas.

Nonetheless, after giving a look to the massive increase of the electricity in Europe, specially during the coldest days of last Winter. I would not be surprised if those companies had nothing to do with energy and yet could not pay their operative costs, and electricity bill.   

It is sad when people who have no say on political matters, gets affected this way.

Europe brought this crisis on to themselves with their stupid policies. Nuclear energy is the cheapest and most environmentally friendly form of energy and for the last 1-2 decades the European governments have been trying to close down nuclear powerplants and replace them with energy from more polluting sources such as lignite and coal fired powerplants. And the joke is that Green Party is spearheading this campaign. The propaganda against nuclear energy has resulted in increased prices of electricity, closure of industries and more importantly, massive pollution to the environment.

If I recall correctly the opening of those coal power plants was a backup measure in case they went low in gas reserves and other kinds of energy inputs. On the other hand, the nuclear power is still a debate, France seems to accept Nuclear energy widely, resulting in them not having to deal as much as the energy crisis as other nations.

The problem is the nuclear waster with very long half life. It is a kind of waste that cannot be dealt with without thinking ahead thousands of years or even more.

As soon as fusion. Energy get developed further, those issues won't be an obstacle for reactors.

[slapper]

Energy crisis? Now that's a belly laugh, folks. We dug, we drilled, now the fun's over, and we're left holding an empty can. Makes you yearn for the days of clip-clopping horse carts, right?

Jokes aside, it's a big deal, no denying it. Here's a brain teaser - this crisis didn't pop up overnight. It's a masterpiece years, heck, decades in the making, thanks to sloppy energy policies and scarce green alternatives. We've been doing the fossil fuel shuffle, and now it's payback time.

We can blame Russia, talk about inflation, but the million-dollar question is, what are we doing to kick our addiction to old-school energy? Ever thought about nuclear? Or renewables? Are we pouring enough cash into these sectors?

[DrBeer]

There are a ton of family-owned businesses and also really small-time companies that operate within a very small region, like a local town or county, and thus only serve that place. Most of these companies have balance sheets that are vulnerable to energy spikes so I would not be surprised if it was these companies that constituted a majority percentage of those that have gone bankrupt.

On the one hand, they said in essence and then they took it and for some reason added stupidity about energy
I’ll clarify using the example of the city of Frankfurt am Main, the Meyans have friends living there, I talked with them. A classic large German city, residential areas with a huge number of private shops, cafes, etc. establishments.

And indeed, if we compare with 2018, for example, then many of these establishments have closed. This is true !
But, there are nuances ... These private "companies" were closed not by a surge in energy prices, but by a lack of buyers .... More precisely, a noticeable drop in consumer demand and purchasing opportunities during COVID19. This sector of business operates, locally, for a local group of buyers. And the physical cessation of the supply of products to shops / cafes / pubs + a ban on visiting = as a result gave a sharp and large decrease in the income of the owners of these "companies". At the same time, tax costs and business maintenance costs (rent, gas, electricity, water supply, ....) have not gone away. Those. the key reason is by no means electricity, especially since it has not risen in price much after the economic terrorism against the EU, which Russia arranged.
The reasons are much more banal, they are in the field of a sharp drop in the income of small / small businesses / companies ...

[Sithara007]

If I recall correctly the opening of those coal power plants was a backup measure in case they went low in gas reserves and other kinds of energy inputs. On the other hand, the nuclear power is still a debate, France seems to accept Nuclear energy widely, resulting in them not having to deal as much as the energy crisis as other nations.

The problem is the nuclear waster with very long half life. It is a kind of waste that cannot be dealt with without thinking ahead thousands of years or even more.

As soon as fusion. Energy get developed further, those issues won't be an obstacle for reactors.

Disposing nuclear waste is more cost efficient than disposing waste coming from coal-fired powerplants. There are several corporations that deal with disposal of nuclear waste. France went in the right direction, and as a result they are not facing any shortage of electricity as of now. On the other end of the spectrum, we have Japan, who closed down all their nuclear powerplants after the Fukushima nuclear disaster in 2011. Now electricity there is in short supply, and is much more expensive compared to the levels they had before the disaster.

[Hispo]

If I recall correctly the opening of those coal power plants was a backup measure in case they went low in gas reserves and other kinds of energy inputs. On the other hand, the nuclear power is still a debate, France seems to accept Nuclear energy widely, resulting in them not having to deal as much as the energy crisis as other nations.

The problem is the nuclear waster with very long half life. It is a kind of waste that cannot be dealt with without thinking ahead thousands of years or even more.

As soon as fusion. Energy get developed further, those issues won't be an obstacle for reactors.

Disposing nuclear waste is more cost efficient than disposing waste coming from coal-fired powerplants. There are several corporations that deal with disposal of nuclear waste. France went in the right direction, and as a result they are not facing any shortage of electricity as of now. On the other end of the spectrum, we have Japan, who closed down all their nuclear powerplants after the Fukushima nuclear disaster in 2011. Now electricity there is in short supply, and is much more expensive compared to the levels they had before the disaster.

I am not against the implementation of nuclear energy, again. It is about the management of the waste.
I assume that you have heard about the possible plants to sent the nuclear waster of fission generators to the outer space or to the sun. Since the radioactivity of the waste would be expected to have no significant impact on a start, which is mostly all kinds of ionizing radiation anyways.

What are you thoughts on that solution to nuclear waste?

[BobK71]

The effect of the war in Ukraine didn't only affect business in Europe and America negatively, it affected the entire world. In Africa, many businesses crumbled and there was a high rate of unemployment. Even the news outlet that OP references agreed that the major reason for this business bankruptcy is not only the energy crisis but the effect of the Covid-19 pandemic. Businesses were just gradually recovering from the pandemic before the war broke out. In my country, the price of oil and gas has stabilized and I also heard that Europe has discovered other sources of importing oil and gas.

The current Ukraine Russia war has affected almost every country in the world. Not only that has an impact on oil or fuel but also on food products. As a result, inflation has assumed the shape of an epidemic. All of Europe used to depend on Russian energy, but that change has now affected almost every country. As the war broke out, many had ideas that eventually turned into reality. However, as there is no specific solution for this, it is not possible to prevent indecisiveness in everything, including burning oil. Although every country is now heavily focused on finding its own natural resources, it is clear that they will not be available soon.

[LoyceV]

If anything, more companies should go bankrupt! Since Covid, far too many companies have been kept alive by tax payers, and bankruptcy numbers are still lower than "normal".
Apart from the personal tragedies, a healthy economy needs bankruptcies to get rid of inefficient companies and create space for better ones.

[Kakmakr]

Guys, why are you so hard on OP?

He also stated this :

The reasons stated for the huge increase in number of bankruptcies in the study are:
1. "Lack" of energy (or energy deficiency as I pointed out nearly a year ago)
2. High inflation
3. "Massive" rise in price of raw materials
4. "Massive" rise in price of energy
5. Significantly higher financing costs due to the turnaround in interest rates
6. Weakened economy

The fact of the matter is that the energy crisis are a contributing factor to a high number of bankruptcies in Europe. We know some businesses adapt and other simply go bankrupt. I live in a country where we have huge challenges with "electricity" ...but we adapt.... and if we do not adapt, we will die. 

[usekevin]

If anything, more companies should go bankrupt! Since Covid, far too many companies have been kept alive by tax payers, and bankruptcy numbers are still lower than "normal".
Apart from the personal tragedies, a healthy economy needs bankruptcies to get rid of inefficient companies and create space for better ones.

The company with good administration had survived after the Covid by suffering some losses.Almost all the companies suffer the huge loss during the Covid,only the food based companies had survived easily because people their full importance to food and health care.The medical industry had earned huge money who are involved in the mask production.Because during Covid,mask became an important one and the cost of mask was increased based on the luxury.One single mask was sold at 5-10$ maximum and it was affordable by the elite people when some of the poor people depend on the government to give them free mask.

[Rruchi man]

Guys, why are you so hard on OP?

He also stated this :

The reasons stated for the huge increase in number of bankruptcies in the study are:
1. "Lack" of energy (or energy deficiency as I pointed out nearly a year ago)
2. High inflation
3. "Massive" rise in price of raw materials
4. "Massive" rise in price of energy
5. Significantly higher financing costs due to the turnaround in interest rates
6. Weakened economy

The fact of the matter is that the energy crisis are a contributing factor to a high number of bankruptcies in Europe. We know some businesses adapt and other simply go bankrupt. I live in a country where we have huge challenges with "electricity" ...but we adapt.... and if we do not adapt, we will die.  

There will always be challenges to business. Any company that starts up and fails to be able to calculate and practically prepare for any situation that can take them out of business will easily be put of business when things get tougher. A pandemic was not expected by many companies and even individuals, but it happened and some businesses survived because they have a good team and management that could make strategies to bypass this challenges, so also with the energy crisis, Companies with good management found a way to strategically adjust and survive the challenge to remain in business, because they are determined to remain. Most of the affected companies are victims because they never expected it, and never made any plan for it.

[Sithara007]

I am not against the implementation of nuclear energy, again. It is about the management of the waste.
I assume that you have heard about the possible plants to sent the nuclear waster of fission generators to the outer space or to the sun. Since the radioactivity of the waste would be expected to have no significant impact on a start, which is mostly all kinds of ionizing radiation anyways.

What are you thoughts on that solution to nuclear waste?

These are not practical solutions. Sending nuclear waste to outer space will get rid of all the radiation, but it is going to be insanely expensive. The best solution is to bury it a few kilometers down in some isolated area, using lead containers (Russia and the US are doing that now). Technology has progressed a lot since the Chernobyl days. Now it is possible to store nuclear waste in secure facilities, which can withstand natural catastrophes such as earthquakes and volcanic eruptions. If managed properly, nuclear energy can be a game changer.

[bangjoe]

Guys, why are you so hard on OP?

He also stated this :

The reasons stated for the huge increase in number of bankruptcies in the study are:
1. "Lack" of energy (or energy deficiency as I pointed out nearly a year ago)
2. High inflation
3. "Massive" rise in price of raw materials
4. "Massive" rise in price of energy
5. Significantly higher financing costs due to the turnaround in interest rates
6. Weakened economy

The fact of the matter is that the energy crisis are a contributing factor to a high number of bankruptcies in Europe. We know some businesses adapt and other simply go bankrupt. I live in a country where we have huge challenges with "electricity" ...but we adapt.... and if we do not adapt, we will die. 

I agree and because that is the main cause, the energy crisis that triggers and makes everything messy and have more problems, especially in this day and age the average industry has a very high dependence on electrical energy, so today the entire industry is very exhausted among them become bankrupt.
Some say this is the result of Covid19, yes agreeing also about this because it is one of the factors that makes it, and there are also those who say that this is the impact of the Russian and Ukraine War, I also strongly agree on this because that's where the triggers make it worse .
We need to understand that there are too many Russian Ukraine disputes that interfere that makes a country that does not participate become a victim of this war, we only need to hope that this war hopefully will be completed quickly.

Humans have lived without electricity, even if electricity is gone, if we can adapt to that situation we can still survive.

[jacafbiz]

I don't think anyone needs to be surprised when the cost of production increases and there is weak demand from consumers, this is bound to happen, this is not supposed to happen but people have been brainwashed overtime to believe everything the media and the government tell them, and they will keep voting for these people that are bent on destroying their livelihood. More companies are going to fold up with time because if not for the free money from the government most would have been dead long ago, we now have more zombie companies than real ones

[el kaka22]

Maybe this is a new thing for Europe, maybe they have such soft bellies and used to having whatever they want that they are shocked about this. But the reality is that the rest of the world is used to this, it is not a shocking result to us.

Because if you have any spine at all, you will stand behind your decision, and what Russia did was wrong, I believe in that and apparently European governments too, hence the sanctions and why they have an energy crisis. They could have easily said we don't care and keep getting cheap energy, and life would be much better today. But when you make a decision and say that it is wrong, then you face whatever trouble it comes with it, Russia is doing that as well, you think they are doing fine? They are getting closer to poverty, but not crying about it like Europeans.

[DrBeer]

This is a classic example of what disaster can happen when you follow the footprint of US who claims to be the boss of the world. Ask youself a question first -

Will any country allow it's biggest enemy to have undisrupted access to their border?

The answer is no!

In terms of the world GDP, Ukraine contributes only 0.3%. So it's not a very important country in terms of international trade. Why would US want them to be a part of NATO? Ask youself this question.

Now when Russia attacked Ukraine to stop them from joining NATO, US imposed a lot of sanctions on Russia. European countries followed the same pattern without thinking that they are highly dependent on Russian gas and oil. The result is in front of you. US successfully managed to bring down entire European economy so that Euro doesn't challenge Dollars dominance.

Hmm ... That is, the FACTS that you were given, which PROVE THE FALSE OF THE AUTHOR OF THE TOPIC - you just ignored it? A "convenient" position, and most importantly, a "strong" one ... What I foresee in advance - not a single argument against - will not come from you

"In terms of the world GDP, Ukraine contributes only 0.3%. So it's not a very important country in terms of international trade. Why would US want them to be a part of NATO? Ask youself this question." - at the same time, you somehow very modestly kept silent about one more FACT ... The fact is simple, easily verified - Russia's GDP after 2022 fell to about 0.9% I.e. a country that owns "more than half of the world's natural resources", which "has a leading position in hydrocarbon deposits", has a "second army of the world", "has international recognition", and other crazy slogans, and has "the largest territory" - just, has a GDP 3 times the GDP of Ukraine!

At the same time, Italy's GDP is MORE than Russia's GDP. Yes, what can I say - the GDP of one state of Texas - MORE GDP of a terrorist country!

Oh yes - and an important clarification - can you PROVE that the United States wants to see Ukraine in NATO, and not Ukraine chose the NATO vector after 2014, when the country of the international cowardly terrorist - Russia, attacked Ukraine? Would be very interesting to hear from you?

PS And for dessert - tell us how the United States harms those who have chosen the path of development, civilization and the rule of law?

[pooya87]

Guys, why are you so hard on OP?

There are generally 3 reasons.
The most obvious one is trolling where even if I say the sky is blue these particular trolls will deny it and say it is some other color. As they say کی شود دریا ز پوز سگ نجس 

Second is being too brainwashed with the propaganda that they are incapable of thinking anymore, this is masterfully summarized in this semi-recent picture about the regular derailments of trains in US some of which are unprecedented environmental disasters!

And finally is because some people think these things are in black and white. For example when we talk about energy crisis these people think that it means nobody should be left alive in Europe anymore (freeze to death)! And because that obviously doesn't happen, they claim that there was no energy crisis whatsoever.
This may sound crazy but their arguments are saying exactly this! They also refuse to see everything else like the deindustrialization that has been going on over the past year and the trillions of dollars of markets that Europe lost, the banks that collapse and are on the verge of bankruptcy, the companies that either go bankrupt or have to fire large number of employees to stay alive (~170k layoffs in past 3 months), or the cost of living crisis in UK or the fact that we entered the fifth month of violent protests in France over the economic crisis caused partly by the energy crisis, etc.

[DrBeer]

This is a classic approach, or the concept of the Russian world - lie always, lie everywhere, lie with or without reason! The main thing is to lie!

I couldn't disagree, but I think modern western governments are more advanced in the "lying game" than anyone else.

- for the local population in Russia, you can give out any nonsense in the media at all

You can do the same thing in the U.S, you can lie to someone who works from 8 to 5, take their tax money, and spend it in a war 7000 miles away from home, and they will still believe that an 18-year- old kid living on a mountain is an existential threat to their country.
Of course, this is pretty universal, the Chinese do the same thing, African governments do the same thing, it's very important to realize that ALL governments manipulate their own people, by not realizing that and thinking that all governments are lying except yours -- it would only prove that you had a successful brainwash.

Let me disagree

Now I will explain why. I do not deny that all governments manipulate information in one way or another. Somewhere they didn’t finish something, somewhere they embellished it a little, but so that it was not a PURE LIE. Why ? And because this topic will be instantly raised, the authors will be smeared with the truth, and there will always be a cliché of "liars" on them.
In Russia, and among its "partners" - a lie is the basis of information and REALITY. Primitive, dumb lie
And no one is responsible for this. Moreover, lies have been put on stream, all information channels are totally controlled, and they carry a total, agreed-upon lie to the masses.
The purpose of this is to manipulate the consciousness of the population. And it is for this reason that Russia has taken a course towards isolation from external information services.

Well, be honest - the headline "199,983 companies went bankrupt in Europe due to the energy crisis in 2022" is true? The answer is NO. The reasons - a huge list, and yes - some surge in energy prices, was not a "positive event" either. But firstly, there was an increase in the cost of energy carriers earlier. Secondly, it did not have a critical impact on business. Thirdly, it turned out that the indicator of the number of bankruptcies is generally less than it was in previous years. In total - the information does not completely correspond to reality, moreover, it is deliberately "twisted" .. And what is this called? That's right - INTENTIONAL LIES!