Europe Spends Close to 800 Billion Euros On Energy Crisis
According to the latest research, the countries of the European region have spent close to 800 billion euros to combat the energy crisis. A major portion of this fund was spent to shield houses & companies from high energy costs.
But now, there are growing talks on how countries need to change that approach and be targeted in their support. Because as things stand right now, the amount spent on energy situation has reached unprecedented levels.
681 Billion Allocated By EU
According to one analysis, the countries from the EU allocated almost 681 billion to spend on the energy crisis. Similarly, the United Kingdom allocated close to 103 billion, and Norway spent 8.1 billion.
The country at the top of the spending chart is Germany, which spent 270 billion. After Germany, the countries which spent the highest were the UK, France, and Italy.
And if we look at the amount spent on the energy crisis on a per capita basis, the biggest spenders were Germany, Denmark, and Luxembourg. The collective spending from the EU and the UK is now on the same level as the EU COVID recovery fund.
According to experts, the recent report comes at a time when countries are moving towards more green energy projects. In addition, the EU is also seeking to compete with other countries, such as China & USA, with the help of subsidies.
However, there are also some voices that believe that providing more state aid with disturb the internal market of the EU. For instance, Germany was criticized for its massive energy aid package that dwarfed the energy spent by every other country.
To decrease the money spent on energy crisis programs, experts believe that governments should introduce income support policies. This will require less budget than providing a very broad energy subsidy.
And considering that Russian energy products are still out of reach for most EU countries, the problem is here to stay. In such situations, the governments will have to readjust their policy.