The energy crisis currently hitting Europe has become a major highlight, affecting various economic sectors in various countries. With the increase in gas and electricity prices, there is a direct impact on people’s costs of living. Countries such as Germany, France and Italy are experiencing unprecedented spikes in energy tariffs, creating economic uncertainty. One of the main causes of this crisis is the reduction in gas supplies from Russia due to geopolitical conflicts and sanctions. As Europe’s largest gas provider, Russia is reducing gas flows from early 2022, forcing European countries to look for more expensive alternatives. In an effort to reduce dependency, many countries have invested in renewable energy such as wind and solar, but the transition takes time. As a result of this crisis, industry in Europe began to experience pressure. Factories that depend on cheap energy are forced to reduce production or even stop operations. In particular, the manufacturing and automotive sectors were hardest hit, with some companies reporting production drops of up to 30%. This has implications for labor absorption which is indicated by increasing unemployment rates in several countries. The influence of the energy crisis also permeates the consumption sector. People are faced with difficult choices, where they have to adjust their household budgets to cope with rising energy tariffs. Some governments, such as those of Spain and Portugal, have implemented emergency measures, including subsidies to help ease the burden of energy costs on citizens. In addition, the impact of inflation due to the energy surge is making economic conditions even more difficult. European central banks must respond to this situation by raising interest rates to curb inflation. However, this also risks slowing growth in an already fragile economy and making lending difficult for small businesses. Geopolitical tensions and energy supply uncertainty will continue to haunt the European economy in the near future. Many analysts predict that this energy crisis could continue until 2024, depending on developments in the global situation and political decisions taken at European level. In the long term, energy transformation towards more sustainable sources remains a hope for Europe to reduce dependence on fossil energy. Meanwhile, investment in renewable energy infrastructure and increased energy efficiency is expected to help build energy security in the future. However, this success depends on the collaboration and shared commitment of all European countries to achieve ambitious sustainability targets.