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The EC calls on Member States to compensate for energy prices

The European Commission calls on Member States to compensate for energy prices. Rising energy prices are a serious problem for the EU.

The EC calls on Member States to compensate for energy prices
Yazar: Tom Roberts

Yayınlanma: 14 Ekim 2021 02:06

Güncellenme: 20 Kasım 2024 05:55

The EC calls on Member States to compensate for energy prices

On Wednesday, the European Commission (EC) called on the 27 member states of the European Union (EU) to take tax cuts and other support measures to mitigate the effects of high energy prices on households and businesses. "Rising energy prices are a serious problem for the EU. At a time when we are recovering from a pandemic and starting to rebuild the economy, it is important to protect vulnerable consumers and support European companies, "said Kadri Simson, European Commissioner for Energy. Last week, the Commission proposed to Member States to support consumers through vouchers, the possibility to defer payment of energy bills and other measures to which the EU can also contribute. Reducing tax rates as well as supporting certain companies or industries could also help. According to the commission, longer-term measures are needed to prepare for price shocks in the future, including accelerating investment in renewable energy sources and developing storage capacity. EU experts expect the price shock to be only temporary, but to last throughout the winter. The main reason for rising prices is the increased demand for energy, especially natural gas, at a time when the world economy is recovering from the effects of the pandemic. At the beginning of October, gas traded almost five times more expensive than at the beginning of the year. The sharp rise in oil and gas prices last month pushed inflation in the eurozone to more than a ten-year high.
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