Member states have allocated €17.9 billion to fiscal measures to contain the inflation crisis, according to the European Commission. The Commissioner for Economy, Valdis Dombrovskis, rules out granting more budgetary flexibility.
Governments of the European Union have channeled €17.9 billion to fiscal measures to cushion the impact of energy prices on households and businesses, according to calculations by the European Commission as of the end of September. This figure is equivalent to about 0.1% of the EU's GDP and is approaching €20 billion, as reported by elEconomista.es.
The community executive warns that more than two-thirds of that spending, around €12.3 billion, is allocated to non-targeted measures, such as reductions in excise taxes on fuels. Brussels insists that aid must be specific, targeted, and temporary, and questions bonuses like the 20 cents per litre of fuel applied by Pedro Sánchez's government.
Tension within the EU has become evident. Italy, backed by Greece, has requested more fiscal leeway to finance energy aid. Rome argues that higher-than-expected inflation will increase revenue and asks that these extraordinary earnings can be allocated to these measures without penalising fiscal rules. Athens believes that aid should not count towards the spending evaluated by the Commission to verify compliance with the deficit.
Spain is also open to requesting more fiscal leeway from the EU for energy aid, as confirmed by the Minister of Economy, Carlos Cuerpo, last week.
"We cannot adopt new flexibilities all the time. This could raise doubts about our collective determination to respect the rules-based fiscal framework at a time when our commitment to fiscal sustainability is a vital asset. We should not put it at risk," said the Commissioner for Economy, Valdis Dombrovskis, during the meeting of EU ministers of Economy and Finance.
Currently, countries can activate the general escape clause for energy measures, which allows for an annual flexibility of 0.3% of GDP over the spending path agreed with Brussels, or 0.6% of GDP cumulatively until 2028.
The inflationary context continues to exert pressure. The eurozone recorded a year-on-year rate of 3.8% in September, up from 3.2% in August, according to preliminary data from Eurostat. Across the EU, prices stood at 3.2% in August, up from 3% in July.
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