Positive recognition for our country from the international rating agency Fitch, which highlights Greece as an exception on the European map thanks to the adoption of targeted support measures to address the energy crisis. This approach contrasts with the choices of many European governments that prefer generalized interventions.
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Limited funding from European governments
European countries have allocated significantly reduced funding to address increased energy prices compared to 2022, when Russia’s invasion of Ukraine caused record price increases. This reduction reflects a more restrained stance by governments toward current energy challenges. Many countries mainly choose horizontal measures, such as generalized fuel tax cuts, despite warnings from economists. Experts argue that priority should be given to targeted interventions directed exclusively at vulnerable households, which are most affected by high energy costs.
Minimal GDP percentages for energy support – Risks to public finances
According to Federico Barriga Salazar, Fitch analyst, the support measures being implemented today remain extremely limited. The percentages range from 0.3% of GDP in Spain to less than 0.01% in countries like France and Britain, which is characterized as insufficient for effectively addressing the problem. Fitch expresses concerns about the fiscal implications of a possible expansion of support measures. Strengthening interventions could seriously burden the public finances of European countries, especially if pressures in energy markets continue or intensify in the near future.
Greece as a positive example
The international agency’s analyst emphasized that Greece stands out positively from the majority of European states, as it has adopted targeted support measures. This approach is an exception in the European landscape and is recognized by Fitch as a more effective method of addressing the energy crisis, as it ensures that aid reaches where it is truly needed.
