European warning against excessive energy subsidies

Informed sources said that the European Commission insists, in discussions with EU member states, that the proposed energy subsidies through tax cuts and caps on fuel prices must be limited in scope and duration.

The Financial Times quoted the EU Energy Commissioner, Dan Jorgensen, as saying, “This is a unified effort on the part of the European Commission,” adding that “the Commission provides technical advice and helps countries formulate the policy tools they want to use within the framework of their financial capabilities.” The Commission urged member states to “coordinate and be cautious” in any measures aimed at alleviating energy price pressures.