The European Commission recommended on Wednesday that all EU governments end their support measures for energy prices by the end of this year to help keep public finances in check and stay in line with fiscal rules, now still under negotiation, in 2024.

“All Member States should wind down the energy support measures in force by the end of 2023,” the EU executive arm said in its annual recommendations, the fulfilment of which now has an impact on getting EU grants from the Recovery Fund.

“Should renewed energy price increases require the implementation of support measures, these should be targeted at protecting vulnerable households and firms, fiscally affordable, and preserve incentives for energy savings,” it said.

Most of the EU’s 27 countries introduced various measures to mitigate the impact of soaring energy prices last year when Russia’s invasion of Ukraine sent gas and oil prices rocketing.

But with energy prices lower again, such level of support is unsustainable and would mean many countries would not be able to meet their net primary expenditure limits recommended by the Commission under a reform of EU fiscal rules that is now negotiated by EU governments.
Source: Reuters (Reporting by Jan Strupczewski)