Reports said yesterday that European countries many have deployed over £700billion (€792billion) to shield businesses and households in the region from soaring gas prices since the start of the energy crisis.
According to the latest research from Bruegel think tank since September 2021, it is calculated that the EU has now earmarked or spent €681billion in energy crisis spending, while the UK has allocated €103billion and Norway just over €8billion.
The report said Germany is by far the biggest spender, splashing out nearly €270billion within the period in review.
The figures mark a sharp increase since the last report three months ago when Bruegel calculated a €706billion total, as countries grappled with a challenging winter with Russia cutting off gas supplies to Europe last year.
Also Read: Europe Deploys €792bn To Protect Citizens Against Energy Crisis
Russia reduced flows significantly from the Nord Stream 1 pipeline and halted flows into multiple countries. Bruegel urged governments to shift towards more targeted support, prioritizing lower income levels as countries start running out of fiscal space to maintain such broad funding.
Funding has chiefly focused on non-targeted measures such as VAT cuts on petrol or retail power price caps. However, the think-tank argued that dynamic needed to change over the coming months.
Bruegel is the European think tank that specializes in economics. Its mission is to improve the quality of economic policy with open and fact-based research, analysis and debate.
Also Read: African Countries Should Embrace Renewable Energy – Experts
Bruegel’s membership includes EU Member State governments, international corporations and institutions. Through publications, events, social media, podcast, and a lively blog, Bruegel has carved a unique discussion space for everyone interested in improving the quality of economic policy, and features highly in several Think Tank awards and rankings.
Through a dual focus on analysis and impact, and dynamic relationships with policymakers at every governance level, it has also established itself as a vibrant laboratory for economic policies.
Be the first to know when we publish an update
