How to deal with Europe’s energy crisis

For a year Europe has lived under the shadow of an energy blockade as Vladimir Putin threatened to turn off the gas taps to the continent. Now the threat has become reality and the prospect of a cold, dark winter is hitting home. On September 5th Russia said it will shut down its Nord Stream pipeline for as long as Western sanctions are in place, sending benchmark gas prices surging by another 30%; they currently stand at the equivalent of around $400 for a barrel of oil. At today’s futures prices, annual spending on electricity and gas by consumers and firms across the European Union could rise to a staggering €1.4trn, up from €200bn in recent years, reckons Morgan Stanley, a bank.