EU invests EUR 500 billion to tackle energy crisis: report

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Countries within the European Union have invested approximately EUR 500 billion to tackle their energy crisis and alleviate the impact they have on their residents, a report from independent research think-tank Bruegel said on Wednesday.

Ever since the conflict between Russia and Ukraine broke out, the EU and the United States imposed sanctions on Russia for energy resources. However, many European countries have since then borne the brunt of those sanctions.

How to cope with the energy crisis

According to the report, energy prices have been skyrocketing over the past months, forcing the governments of most European countries to roll out a series of measures, including cutting energy taxes and subsidising their residents, to try to cope with the ongoing crisis. Statistics in the report showed that 27 EU countries have spent a total of EUR 314 billion in this regard alone.

The report also warns that many of these measures which have been adopted may only be temporarily effective and could result in structural problems from a long-term perspective.

As for countries with a healthy financial standing, the report predicts they will inevitably take up the share of energy resources that would have belonged to other countries for the upcoming winter period, which may again bring hardships to certain nations.

Data from the report showed Germany, the largest economy within the bloc, has invested over EUR 100 billion since the start of the crisis, while Italy has invested just over EUR 59 billion. At the other end of the scale, Estonia has set aside EUR 200 million.

Bruegel think-tank

According to the Bruegel official website, the think-tank is “independent and non-doctrinal. Bruegel’s mission is to improve the quality of economic policy with open and fact-based research, analysis and debate. We are committed to impartiality, openness and excellence. Bruegel’s membership includes EU Member State governments, international corporations and institutions.”

Bruegel mainly focuses on economic policies and publishes its findings through publications, events, social media, podcasts, and a blog.