In the past few days, two of the largest countries in Europe have announced plans to nationalise two of the largest energy companies in their respective nations. This would reverse the clock on privatisation by decades and will put the most important question for debate.
Is it necessary and practical to privatise the critical sectors and especially nationally relevant companies? As always there will be rational answers given by those who support and those who are against it. But given the current scenario, it is important to reconsider the question as it is rare for such a scenario to occur in a decade or two but not rare in forty or fifty years.
Many countries where energy and fuel companies are private have introduced subsidies that are increasing every week and putting pressure on the fiscal situation but it is necessary as without them citizens will suffer immensely. On the other end of the spectrum, countries that have these companies under government control or regulations have unofficially frozen the price rises leading to such companies absorbing heavy losses.
Both scenarios hamper the economy but in the second scenario, the public at large is saved from the high price of fuel and energy prices that cannot be reduced or avoided.
These steps and the process of nationalisation of such companies would only increase from hereon as the winter usage will put more pressure on the global economy. This would lead to the introduction of rationing of power and maybe even fuel in many countries this might even start a trend of global depression.