Global turbulence the ‘new normal’

European Commission President Ursula von der Leyen warned yesterday that global disruptions and volatility are the “new normal”, with more geo-economic tensions on the horizon.

“2024 will be a decisive year, with more geo-economic tensions expected — from the Red Sea to the Taiwan Strait — which also means more frequent disruptions to supply chains and greater volatility on the energy markets,” she told a climate conference in Hamburg.

“International competition is becoming harder. That is the new normal that we have to deal with.”

More frequent extreme weather events added to the mix means Europe needs to pull together “as never before” to face the challenges.

The 27-nation bloc, she assessed, had reacted quickly to curb its dependence on Russian gas after Moscow’s fully-fledged invasion of Ukraine in February 2022.

The emergency meant that the EU was likely to be generating more energy from wind and solar than from gas this year.

But von der Leyen said energy prices needed to come down further, and she urged the “right investment decisions” to make that happen.

Industries in Europe have been severely hit by Russia’s war on Ukraine, which has disrupted supply chains and driven up energy prices, sparking sustained inflation.

The difficulties faced by businesses have been compounded by attacks on international shipping in the Red Sea by Iran-backed Houthi rebels in Yemen.

In response, Britain and the United States have struck Houthi targets.

The election in Taiwan of a new president from the Democratic Progressive Party, which rejects China’s claim to the island, has also sparked fears of fresh turbulence in East Asia.