European authorities have allocated almost €800 billion to mitigate the effects of the energy crisis
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According to the Brussels research organization Bruegel, the authorities of European countries have allocated €792 billion to protect the population and business from a sharp increase in electricity prices. Compared to the previous report, which was released in November, this amount increased by €86 billion.
As noted in the report, €268.1 billion of the total amount falls on Germany alone, with which no other European country can be compared in terms of the amount of allocated funds. The second in this ranking among all European countries is the United Kingdom (€103.3 billion). Slightly less allocated Italy (€99.3 billion) and France (€92.1 billion). The spending of most European countries does not exceed €10 billion.
At the same time, in terms of the percentage of allocated funds from the gross domestic product, Slovakia is in first place, which was ready to spend 9.3% of GDP on protecting the population and businesses from high electricity prices. Germany allocated for these needs an amount equivalent to 7.5% of GDP.
As noted in the report, European governments directed most of these funds directly to contain consumer prices. This was achieved mainly by reducing the VAT on fuel or artificially limiting electricity tariffs. But the arsenal of these measures is almost exhausted, Bruegel analysts say.
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