European countries spent almost 800 billion euros to fight the energy crisis
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The costs of European countries to protect the population and business from the rapid increase in energy prices have increased to almost 800 billion euros.
This is stated in the research of the analytical center Bruegel, reports Reuters.
As of September 2021, EU members have already allocated or plan to allocate €681 billion, while the UK has allocated €103 billion and Norway €8.1 billion.
Thus, total spending on overcoming the energy crisis reached 792 billion euros, compared to 706 billion euros in November, as countries continue to struggle with the consequences of Russia’s cutoff of gas supplies to the region.
Germany spent the most, 270 billion euros, which is a significant difference from other European countries. The largest economies of the Eurozone were Great Britain, Italy and France, which spent less than 150 billion euros. Luxembourg, Denmark and Germany spent the most per capita.
The costs allocated by countries for the energy crisis are compared with a fund of 750 billion euros for recovery after the coronavirus pandemic.
Governments have focused most of their support on non-targeted measures aimed at curbing retail energy prices, such as reducing VAT on petrol or capping retail electricity prices, analysts said.
As a result, states are running out of fiscal space for long-term financing support of such a volume. Instead, according to the authors of the study, it is more appropriate to support the population with the lowest income level and strategic sectors of the economy.
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