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A30 world news
Diamars 19 Juli 2022

Economics of war: Pain for Europe now, later for Russia

and a shutdown would leave that
In the long run, however, economists ocean of milk with nowhere to go.
say Russia, while avoiding complete
collapse, will pay a heavy price for the “If the dairy doesn’t function, then
war: deepening economic stagnation the farmers can’t either,” manag-
through lost investment and lower ing director Bernhard Pointner said.
incomes for its people. “Then the farmers would have to dis-
card their milk.”
Europe’s most pressing challenge is
shorter term: battle record inflation In one hour, the dairy uses the equiv-
of 8.6% and get through the winter alent of a year’s worth of electricity
without crippling energy shortages. for a home to keep up to 20,000 pal-
The continent relies on Russian nat- lets of milk cold.
ural gas, and higher energy prices are
flowing through to factories, food The dairy also has stockpiled pack-
costs and fuel tanks. aging and other supplies to guard
against suppliers being hit by an en-
Uncertainty weighs on energy-inten- ergy shortage: “We have a lot stored
sive industries like steel and agricul- ... but that will only last a few weeks.”
ture, which could face natural gas ra-
(AP) - Across Europe, signs of Those pressure points are signs of tioning to protect homes if the crisis The economic woes also appear at the
distress are multiplying as Rus- how the conflict — and the Krem- worsens. dinner table. Consumer groups esti-
sia’s war in Ukraine drags on. lin gradually choking off natural gas mate a typical Italian family is spend-
Food banks in Italy are feeding that keeps industry humming — pro- Molkerei Berchtesgadener Land, a ing 681 euros (dollars) more this year
more people. German officials voked an energy crisis in Europe and large dairy cooperative in the German to feed themselves.
are turning down the air condi- raised the likelihood of a plunge back town of Piding outside Munich, has
tioning as they prepare plans to into recession just as the economy stockpiled 200,000 liters (44,000 gal- “We’re really concerned about the
ration natural gas and restart coal was rebounding from the COVID-19 lons) of fuel oil so it can keep produc- situation and the continuous increase
plants. pandemic. ing power and steam for pasteurizing in the number of families we’re sup-
milk and keeping it cold if electricity porting,” said Dario Boggio Mar-
A giant utility is asking for a taxpayer Meanwhile, high energy costs fu- or natural gas to its turbine generator zet, president of the Food Bank of
bailout, and more may be coming. eled by the war are benefiting Russia, is cut off. Lombardy, which groups dozens of
Dairies wonder how they will pas- a major oil and natural gas exporter charities that run soup kitchens and
teurize milk. The euro has sagged to whose agile central bank and years of It’s a critical safeguard for 1,800 provide staples to the needy. Their
a 20-year low against the dollar, and experience living with sanctions have member farmers whose 50,000 cows monthly costs are up 5,000 euros this
recession predictions are on the rise. stabilized the ruble and inflation de- produce a million liters of milk a day. year.
spite economic isolation. Dairy cows have to be milked daily,

Sri Lanka acting president declares emergency amid protests

(AP) — Sri Lanka’s acting can also change or suspend them. He also urged political urday began the process of any legitimate expression of
president on Monday de- any law during the state of parties to put aside differ- electing a new leader to serve opinion on the election to the
clared a state of emergen- emergency. ences and form “an all-party the rest of the term aban- president nor to suppress any
cy that gives him broad government which would doned by Rajapaksa. Nomi- dissent or disagreement on a
authority amid growing Wickremesinghe said in a allow the country to recover nations for the election of the particular candidate.”
protests demanding his statement that negotiations from the economic crisis.” new president will be made
resignation — just two for a bailout package with on Tuesday. If there is more The association also stressed
days before the country’s the International Monetary There was no immediate re- than one candidate, the law- that these laws should not be
lawmakers are set to elect Fund were nearing conclu- sponse from political parties makers will vote on Wednes- used to “stifle peaceful pro-
a new president. sion while discussions for to his latest comments, but day. tests and dissent or to make
assistance with foreign coun- they have been working to try arbitrary arrests and deten-
Ranil Wickremesinghe be- tries have progressed. There to form a unity government. Sri Lanka Bar Association tions.”
came acting president on Fri- has been no comment from said the emergency laws
day after his predecessor, Go- the IMF on Wickremesing- Lawmakers who met on Sat- “must not be used to suppress
tabaya Rajapaksa, fled abroad he’s assessment of the bailout
and resigned after months- talks.
long mass protests over the
country’s economic collapse. He said that relief was being
provided to people and steps
Wickremesinghe’s imposi- have been taken to resolve
tion of the state of emergency shortages of fuel and cooking
came as protests demanding gas.
his resignation continued in
most parts of the country, However, Wickremesinghe
with some demonstrators claimed “elements within so-
burning him in effigy. ciety” were trying to disrupt
peace in Sri Lanka. He did
The emergency decree in- not provide specifics, but said
vokes sections of the Pub- that disruptions will not be
lic Security Ordinance that allowed to hinder the coun-
allow Wickremesinghe to try’s progress.
make regulations in the in-
terest of public security and Wickremesinghe said that
order. Authorities can autho- peaceful protesters who had
rize detentions, take posses- legitimate concerns would be
sion of property and search engaged with by the govern-
premises. Wickremesinghe ment and solutions found for