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800 bln euros spent on energy in Europe since September 2021

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Feb 2023 15:08
3 Min Read

Germany has received harsh criticism over its enormous aid package since the rest of EU states reportedly spend 'a fraction' of what Berlin spent.

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  • Storage tanks at the Leuna refinery and chemical industrial complex. (Bloomberg)
    Storage tanks at the Leuna refinery and chemical industrial complex. (Bloomberg)

Reuters reported on Monday that the combined bills of energy crisis relief funds aimed at shielding households and companies from excruciating energy bills in all European countries have nearly reached a total of 800 billion euros, citing researchers from German think-tank Bruegel.

According to the data, the European bloc allocated about 681 billion euros for its energy relief program, the UK spent about 103 billion euros, and Norway alone spent an estimated 8.1 billion since September 2021, totaling overall 792 billion euros. 

The last time an assessment was performed on the matter was in November. Estimates revealed that European countries had at the time spent about 706 billion euros. 

Among the top countries figured, Germany was the number one spender with nearly 270 billions allocated to energy - followed by the UK, then Italy, and France, as the next highest spenders in energy relief programs, despite that they have all spent less than 150 billion euros.

Germany has received harsh criticism over its enormous aid package, since the rest of EU states reportedly spend 'a fraction' of what Berlin spent. On a per capita basis, Luxembourg, Denmark and Germany topped the charts. 

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The spending allocated for energy bills relief has now surpassed the Covid-19 recovery fund, which reportedly cost a staggering 750 billion euros. The fund was approved in 2020, and the debt was later passed onto the bloc's member states in the aftermath of the pandemic. 

This comes in light of recent discussions held on a bloc-wide level to relax certain compulsory programs so that green technology projects can unfold.

The EU needs to secure large sums in order for it to compete fairly with China and the US in terms of green subsidies. 

Analysts from the Bruegel think-tank believe change is required for states to manage their large-scale fiscal needs. 

"Instead of price-suppressing measures that are de facto fossil fuels subsidies, governments should now foster more income-support policies targeted towards the lowest two quintiles of the income distribution and towards strategic sectors of the economy," research analyst Giovanni Sgaravatti said.

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