Eurogroup: Removal of electricity subsidies

In favor of a two-tier energy pricing model, according to which “businesses and households will receive a basic package of energy services at a subsidized price” up to a consumption threshold (to be clearly defined) and “market prices for energy consumption above a set limit”, eurozone finance ministers expressed themselves.

The Eurogroup has focused on addressing the energy crisis affecting businesses and households. Management stated that from now on, measures should be targeted and focused on supporting extremely vulnerable segments of the population.

In this context, it was stated that “it is necessary to introduce a two-tier energy pricing model, taking into account the national characteristics of each Member State EU“.

In addition, the measures should support reduction in consumption to reduce energy dependence on Russia and a faster transition to renewable sources of “green energy”.

“Businesses and households will receive a basic package of energy services at a subsidized price,” the eurozone finance minister said.

With regard to fiscal policy, it was noted that “the 2023 budget guidance included in the Board’s recommendation of 12 July 2022 distinction between high and low/medium debt Member States based on their financial and economic status.

Highly indebted eurozone members should pursue prudent fiscal policies, in particular limiting nationally funded increases in primary current expenditures. Low/medium debt member states should aim for fiscal neutrality.”

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