Energy crisis in Europe has already cost 800 billion
2023.02.13 02:01
Energy crisis in Europe has already cost 800 billion
By Ray Johnson
Budrigannews.com – Researchers on Monday urged nations to spend more selectively in order to address the energy crisis, stating that the cost to protect businesses and households across Europe from skyrocketing energy costs has increased to nearly 800 billion euros.
According to an analysis conducted by the think tank Bruegel, countries in the European Union have earmarked or allocated 681 billion euros for speeding up the energy crisis, while Britain has allocated 103 billion euros and Norway has allocated 8.1 billion euros since September 2021.
As countries continue to deal with the consequences of Russia cutting off the majority of its gas deliveries to Europe in 2022 throughout the winter, the total stands at 792-billion-euros, compared to 706-billion-euros in Bruegel’s most recent assessment in November.
With nearly 270 billion euros, Germany topped the spending list, surpassing all other nations. France, Italy, and Britain came in second, spending less than 150 billion euros each. The majority of EU nations spent less than that.
Luxembourg, Denmark, and Germany were the biggest spenders per capita.
The countries’ planned expenditures for the energy crisis are now comparable to the EU’s 750 billion euro COVID-19 recovery fund. In order to deal with the pandemic, a 2020 agreement was reached that Brussels would assume joint debt and distribute it to the 27 member states of the bloc.
The most recent information on energy spending comes as nations debate EU proposals to make state aid rules for green technology projects even looser, as Europe tries to compete with subsidies from China and the United States.
Some EU capitals have expressed concern that these plans would upset the bloc’s internal market by encouraging more state aid. Germany’s enormous energy aid package, which is significantly more than what other EU nations can afford, has drawn criticism.
According to Bruegel, governments had focused the majority of their support on non-targeted measures to reduce the retail price that customers pay for energy, such as petrol VAT cuts or power price caps at retail.
According to the think tank, this dynamic needed to change because states are running out of money to keep this much funding.
Giovanni Sgaravatti, a research analyst, stated, “Instead of price-suppressing measures that are de facto subsidies for fossil fuels, governments should now foster more income-support policies targeted towards the lowest two quintiles of the income distribution and strategic sectors of the economy.”
