My dialogue yesterday with Cristi Citre, at Digi24, about the kerosene crisis in European civil aviation and about the IMF's recommendation that governments not reduce taxes. The main ideas: - it is too early to be happy, a fact confirmed by the events of today (Saturday) when Iran closed the Strait of Hormuz again, not even a day after the so-called "opening". It didn't even last a day. ... - the aviation fuel crisis does not affect everyone in the same way. The countries with major aviation hubs (London, Frankfurt, Paris, Amsterdam) will be more affected, even if the respective countries have refineries, since the demand in these aviation connection nodes exceeds the production of kerosene in the respective countries. On the other hand, there are countries that cover their needs (Poland, Romania, Greece). Just as there are countries that are 100% vulnerable and dependent on imports (the Republic of Moldova for example), but also countries where there were refineries but which were closed in the last decades as a result of environmental policies (Great Britain had, for example, 18 refineries in the 70s, and now has only 4). - the IMF recommendation for governments (the one with "Don't reduce taxes") must take into account the level of taxation existing in the respective country before the onset of this crisis. The situations differ, we cannot go by general recommendations, but we must take into account the individual situations. - all in all, we can't relax yet. The black-and-white game with our nerves and wallets will continue, especially now that Iran has learned that blocking the Strait of Hormuz is a more powerful weapon even than the possession of nuclear weapons.
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