MNI BRIEF: Risk Of Gas Shutdown A Growth Threat - EU Gentiloni

The biggest threat to economic growth across Europe was the risk of further Russian gas supply shortages, EU Economy Commissioner Paolo Gentiloni said Monday.

Speaking ahead of the Commission's updated economic forecasts, due Thursday, Gentiloni said "What could change the situation we are in and bring us in a more difficult economic situation are supply cuts and real shortages of supply,” he added.

The current economic outlook as yet was one of a reduced pace of growth, he said, underlining that he did not yet see growth entering negative territory. He noted that the Commission is currently preparing a communication for July 20 to address some of the current energy supply risks.

In its May forecasts, the Commission outlined an adverse scenario, which showed growth turning negative this year as a result of larger cuts to energy supplies. While risks are on the increase, he cautioned that the situation was not yet in this adverse scenario. EU Commission Executive Vice President Valdis Dombrovskis also said, although not a baseline scenario, a total shutdown of Russian gas could not be excluded: