The cost of Europe’s energy crisis is approaching 800 billion euros
The bill for European governments to protect consumers and businesses from rising energy costs has risen to nearly 800 billion euros, according to researchers, who are pushing countries to be more targeted in their expenditure to address the energy issue.
According to the analysis by think-tank Bruegel, European Union countries have now earmarked or budgeted 681 billion euros in energy crisis escalation, while Britain has given 103 billion euros and Norway has committed 8.1 billion euros since September 2021.
The 792-billion-euro sum compares to the 706-billion-euro total in Bruegel’s previous assessment in November, as countries continue to deal with the consequences from Russia’s decision to shut off most of its gas deliveries to Europe in 2022.
Germany led the way in terms of spending, allocating nearly 270 billion euros – a figure that dwarfed all other countries. Britain, Italy, and France came in second and third, with each spending less than 150 billion euros. The majority of EU member states spent a fraction of that.
Luxembourg, Denmark, and Germany were the highest spenders per capita.
The countries’ spending on the energy crisis is now on par with the EU’s 750 billion-euro COVID-19 recovery fund. To deal with the pandemic, Brussels agreed to take on joint debt and pass it on to the bloc’s 27 member states in 2020.
The update on energy spending comes as countries debate EU proposals to further relax state aid rules for green technology projects as Europe seeks to compete with subsidies in the United States and China.
Some EU capitals are concerned that encouraging more state aid will upset the bloc’s internal market. Germany has come under fire for its massive energy aid package, which far exceeds what the rest of the EU can afford.
