Due to sharply rising acquisition costs for natural gas, the new economic model advocates for European and Asian states to coordinate their market power in the lead-up to the summer. In an interview with the “Funke” media group, the economist stated that a cooperative solution is necessary-ideally a buying cartel among EU nations, supplemented by Asian countries-to ensure gas storage facilities can be refilled at reasonable prices. He warned that without such coordination, participating entities risk engaging in competitive bidding wars for gas supplies. Felbermayr anticipates that the major scramble among companies and nations to secure available gas volumes will begin by August, a situation that could push prices even higher, ultimately impacting consumer bills.
The global pricing has been volatile before, notably surging alongside crude oil during the Iran conflict. This instability is compounded by the fact that a significant portion of global liquefied natural gas trade passes through the Strait of Hormuz, which the Iranian regime has largely restricted due to ongoing tensions. The Austrian economist has been a member of the German Council of Experts on Economic Policy (Sachverständigenrat) since March, advising on macroeconomic developments, and he currently directs the Austrian Institute of Economic Research (WIFO) in Vienna.
