Europe's energy crisis is now hurting France's traditional bakeries

2023-01-08 20:10:41
Europe's energy crisis is now hurting France's traditional bakeries

The French government is rushing to save traditional bakeries from having to close due to soaring production costs, amid Europe's energy crisis.

French energy suppliers have agreed to allow for the renegotiation of contracts if bakers struggle to pay their bills, Euronews reported.

France's iconic baguette has been under an increasing threat as bakers struggle with sharp hikes in the price of butter, flour and sugar.

But with astronomical electricity bills looming this year, some have been warning their ovens will remain unlit.

It has been reported that nearly 80% of French boulangeries are on the brink of bankruptcy as a result of the energy price hikes.

The country's Economy Minister has proposed a survival package to help the country's 33,000 bakers.

Soaring power and gas prices have rocked energy companies across Europe, forcing utilities and traders to secure extra funds from governments and banks to cover margin call requirements.

Europe got hit by roughly $1 trillion from surging energy costs in the fallout of Russia's war in Ukraine, and the deepest crisis in decades is only getting started.

While EU governments were able to help companies and consumers absorb much of the blow with more than $700 billion in aid, according to the Brussels-based think tank Bruegel, a state of emergency could last for years.

With interest rates rising and economies likely already in recession, the support that cushioned the blow for millions of European households and businesses is looking increasingly unaffordable.


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