The good times are over

The financial meltdown, the war between Russia and Georgia, and disruptions in natural gas supplies from Russia have left people in Central Europe and the Balkans feeling vulnerable and angry, coming as they do after years of strong economic growth. The result: riots in Lithuania, Latvia and Bulgaria, and considerable anger directed at the national governments.

Meanwhile, the deadlock over natural gas shipments from Russia continues. Germany told Russia that its credibility as a supplier is in jeopardy; Russian prime minister Putin in turn proposed a consortium to deliver the gas. Ukraine interprets that proposal as an attempt to get control over Ukrainian pipelines. The EU is resisting Russian efforts to enlist it against Ukraine, and is more likely to declare a pox on both houses.

With extremely cold weather in Europe, this ain't no fun. It's worst in Bulgaria and elsewhere in the Balkans, but many European countries also have shortfalls in deliveries. There may be one silver lining to the cloud: EU energy forecasts typically assume ever greater dependency on Russia. This crisis may serve as a wake-up call.