In a Europe that continues to be tested by the consequences of the greatest energy crisis in its modern history, one country after another is proceeding to take targeted measures at national level, in order to relieve households and businesses from the storm of high prices triggered by the war in the Middle East. At the same time, at European Union level, the leaders of member states have asked the European Commission to develop a broader “toolkit” of temporary measures, accompanied by special flexibility clauses for energy expenditures, so that the fiscal balances of member states are not burdened.
The goal is to give states greater room for maneuver to support households and businesses, without jeopardizing fiscal stability, amid the ongoing crisis. However, yesterday’s Summit did not reach specific decisions, confirming once again that European mechanisms move at slow pace, while national governments are forced to take immediate measures to contain social and economic pressures.
Energy crisis: Anti-inflation measures taken by EU countries
In Germany, the government has proceeded to reduce state fees that burden electricity bills, while also providing targeted subsidies to vulnerable households, with the aim of limiting the burden from increased energy costs and ensuring social cohesion.
In Austria, the government recently announced a package of measures to neutralize the shock from fuel price increases. Among the interventions is the reduction for a specific period of the special consumption tax on gasoline and diesel by 5 cents per liter and combined with the imposition of caps on gross margins for gas stations.
Further south, in Italy, temporary reductions in special consumption taxes on fuels were announced, which will limit the price of gasoline and diesel at the pump by approximately 25 cents per liter. At the same time, the government committed to allocating additional resources for tax incentives, aimed at supporting businesses — especially in the transport sector, which is directly affected by increased energy costs. Meanwhile, Rome is exerting pressure at European level even for the temporary suspension of the emissions trading system (ETS), estimating that such a move could contribute to reducing electricity generation costs and, by extension, energy tariffs.
In Spain, the government is proceeding to reduce the VAT rate on fuels from 21% to 10%, while also suspending the special hydrocarbon tax, seeking to limit gasoline and diesel prices for consumers. This intervention is estimated to lead to a reduction in fuel prices by approximately 0.30 to 0.40 euros per liter. Additionally, the 5% tax on electricity consumption is “frozen,” further reducing costs for households and businesses and strengthening the overall support package against energy inflation.
In Portugal, a legislative framework has already been established that provides for the activation of temporary caps on electricity prices in case of energy crisis. The measure is accompanied by provisions for mandatory reductions in consumption, both for households and businesses, aimed at limiting demand and stabilizing the market.
Measures taken by Greece
Greece, for its part, has imposed caps on gross profit margins at fuel stations and refineries, as well as on basic food items, attempting to limit profiteering phenomena and contain prices in the market.
At the same time, it has prioritized the adoption of targeted support measures for households, such as fuel subsidies through the Fuel Pass (for unleaded gasoline and diesel), electricity bill enhancements through the Power Pass, as well as inflation vouchers like Market Pass to cover basic needs.
At the same time, Athens steadily supports the need for broader, coordinated action at European Union level, as long as the energy crisis lasts, pointing out that addressing price pressures requires common European solutions.
