Europe’s energy bills hits 800 billion euros

Oluwanifemi Ojo
Oluwanifemi Ojo

Researchers stated on Monday that the amount spent by  European countries to protect people and businesses from rising energy expenses has risen to about 800 billion euros.

Researchers have urged countries to be more strategic in their expenditure to address the energy crisis.

The analysis by think-tank Bruegel, showed that European Union  countries have set aside 681 billion euros to address the energy problem.

According to the analysis, Britain contributed 103 billion euros and Norway 8.1 billion euros since September 2021.

Countries continue to face the impact of Russia’s decision to cut gas supplies.

Germany topped the spending list with a budget of about 270 billion euros, much above that of any other nation. Although each spent less than 150 billion euros, Britain, Italy, and France came in second and third, respectively.

Luxembourg, Denmark, and Germany spent the most money per capita.
Compared to Bruegel’s most recent estimate from November, which was 706 billion euros, the total is now 792 billion euros.
According to Reuters, the countries’ spending on the energy crisis is now comparable to the EU’s COVID-19 recovery fund, which has a cap of 750 billion euros.

The report on energy spending comes as nations discuss EU proposals to make the state assistance regulations less tight for more green technology initiatives as Europe strives to compete with American and Chinese subsidies.

EU capital thinks these aids will cause unsettlement in the bloc’s internal market.

Germany has been aiding energy heavily and beyond what other EU nations can afford.

According to Bruegel, governments have primarily supported non-targeted actions to reduce the retail price consumers pay for energy, such as reducing the VAT on gasoline or setting retail power price caps.

It emphasised that states are running out of fiscal space to continue providing such extensive assistance, according to the researcher Bruegel, therefore dynamics have to alter.

A research analyst Giovanni Sgaravatti said, “Instead of price-suppressing measures that are de facto fossil fuel subsidies, governments should now foster more income-support policies targeted towards the lowest two quintiles of the income distribution and towards strategic sectors of the economy.”

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