Excessive spending to support the economy of the EU countries against the background of high energy prices may lead to a budget crisis. This is reported by sources in the European Commission.
Brussels emphasized that the aid should be temporary to avoid another economic crisis amid high levels of public debt.
Measures to combat high fuel prices (subsidies, reduction of excise duties) should be targeted and short-term. Excessive stimulation of the economy may provoke price increases and budget deficits.
According to Eurostat, by the end of 2025, the total public debt of the European Union has reached a level exceeding 82% of GDP (average 82.1%-82.8%). In absolute terms, the EU public debt amounted to about 15.3 trillion euros, which is the highest value for the last two and a half years.
The lessons of the past are coming to bear. The European Commission seeks to avoid the mistakes of the energy crisis of 2022, which led to a sharp rise in inflation and budget deficits. Countries are advised to act within the budgetary limits available to them in order not to destabilize the financial system of the entire euro zone.
The warning comes amid a new spike in fuel prices caused by geopolitical instability over the conflict in Iran. While countries such as Germany, Italy, Spain, Portugal and Austria are proposing a tax on the excess profits of energy companies to help the public, the EC is urging maximum caution in direct government spending.
