The European Union has spent over €10 billion on measures against the crisis in the energy sector

The countries of the European Union (EU) have allocated more than €10 billion to support consumers and businesses amid rising energy prices due to the conflict in Iran. This was reported by Bloomberg on April 28.

"The states of the European Union have allocated more than €10 billion to protect consumers and businesses in connection with rising energy prices due to the war with Iran, but most of these measures are poorly planned," according to a study by the Bruegel analytical center.

According to experts, about 80% of these expenditures, including broad tax breaks, are inappropriate and contradict the recommendations of the European Commission on temporary and targeted measures. Spain accounts for the largest costs, followed by Germany.

The energy shock worsens the EU's economic prospects, increasing pressure on budgets and affecting growth and inflation, especially in the bloc's largest economy. The situation is aggravated by the fact that the EU has not yet recovered from the consequences of the 2022 crisis caused by the conflict in Ukraine.

Against the background of the ongoing conflict, fossil fuel costs have already increased by more than €20 billion, and oil prices have exceeded $110 per barrel. The world is facing the largest oil and gas supply disruptions in history amid restrictions on shipping in the Strait of Hormuz due to the Middle East conflict.

The crisis is most acutely felt in Europe and Asia, where prolonged supply disruptions are predicted, which is why several governments are forced to take measures aimed at combating energy shortages.

More than it will affect: the global gas crisis will last about five years

Which countries will be affected first and how long will it take to restore the supply of Middle Eastern LNG

The head of the European Council, Antonio Costa, said on April 24 that the crisis in the Middle East was having a slowing effect on the growth of the EU economy. The consequences of the same event, he said, have a direct impact on the lives of ordinary Europeans.

Slovak Prime Minister Robert Fico said on April 18 that the energy situation should change the EU's attitude towards Russia. He also mentioned the EU's assistance to Ukraine, which was responsible for the cessation of supplies via the Druzhba oil pipeline.