Europe Spent €10 Billion on Iran Energy Shock Aid, Bruegel Says
Summarize this article with:
imop96de111xste6ekozor}h_media_dl_1.png Bruegel, BloombergArticle content(Bloomberg) — European Union states have committed over €10 billion ($11.7 billion) to shield consumers and businesses as the Iran war drives up energy prices, according to the Bruegel think tank.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe spending hasn’t been deployed efficiently with nearly four-fifths of measures — such as blanket tax cuts — poorly targeted, according to a study by the Brussels-based think tank. Some of the support being offered doesn’t fit with European Commission advice that aid should be temporary and not boost demand. Spain accounts for almost half of the total, with Germany the second-highest spender.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe energy shock is worsening the economic outlook for the EU, with the strain on government budgets likely to grow further if the conflict continues. That’s hitting both growth and inflation in Germany — Europe’s biggest economy — while Italian Prime Minister Giorgia Meloni warned last week that not all EU countries have the fiscal headroom to cushion the blow of higher prices. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Middle East conflict comes as the 27-nation bloc is still dealing with the fallout of Russia’s invasion of Ukraine in 2022, which sent gas prices surging to record highs. During that energy crisis, EU governments earmarked and allocated over half a trillion euros of support for consumers.Article content“The bad news is that EU governments seem not to have learned much from the 2022 energy crisis,” Simone Tagliapietra, an analyst at Bruegel, told Bloomberg. “Against all recommendations by European and international institutions, they are indeed prioritizing quick and un-targeted measures. This is socially unequal and risks fueling the problem further by pushing demand at times of scarcity.”Article contentArticle contentEU leaders appealed last week for new measures to help cushion the blow from rising energy prices, saying a plan that the commission put on the table — involving greater coordination, measures on jet fuel and energy tax cuts — was insufficient. Article contentSpain’s Prime Minister Pedro Sanchez called for more resources to electrify the economy, more flexible fiscal rules and a windfall tax on energy companies. His government has targeted VAT cuts on fuel, electricity and gas, as well as providing direct aid for the farming, transport and industrial sectors.Article contentThe commission has said that since the start of the Iran war, the EU has paid more than €20 billion extra for the fossil fuels it uses. Article contentOil prices climbed again Tuesday, with Brent crude rising 2.5% to over $110 a barrel.Article contentTrending Carney launches $25-billion sovereign wealth fund that will allow Canadians to share in profits Economy Rogers offering buyout packages to roughly half of its staff Telecom Subscriber only. How a collapsing rental market is costing some homeowners more than they bargained for Subscriber only Real Estate Posthaste: Deficits are climbing across Canada, but this province is awash in red ink News Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Carney launches $25-billion sovereign wealth fund that will allow Canadians to share in profits Economy Rogers offering buyout packages to roughly half of its staff Telecom Subscriber only. How a collapsing rental market is costing some homeowners more than they bargained for Subscriber only Real Estate Posthaste: Deficits are climbing across Canada, but this province is awash in red ink News Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy