Europe continues to play its familiar delaying game with energy costs. Despite the electric shock caused by high energy prices across the European economy, yesterday's Eurogroup concluded without any decision being taken on additional support measures, while the issue did not even constitute an object of substantial discussion.
Established practice
The procrastinatory stance of Brussels toward a problem that has triggered successive waves of inflationary pressures is now tending to become an established practice. The European Commission, which has undertaken to examine the requests of member states, including Greece, for greater flexibility in utilizing funds allocated for energy infrastructure, continues to keep its cards close to its chest. At the same time, households and businesses are already paying the price of the delay. High prices do not merely burden electricity and heating bills, but diffuse throughout the entire economy, from transportation and production to basic goods.
The leaders' appeal
And all this while at the recent Summit, following tough negotiations, European leaders had called on the Commission to examine and propose, where necessary, additional measures to address the sharp rise in energy prices on a short-term horizon. The conclusions had even placed emphasis on the particularities of each member state and the large divergences recorded in electricity prices.
What Greece demands
The Greek government will continue to claim greater margins of fiscal flexibility, as the upcoming period is considered particularly critical for the outcome of the consultations. Standing out on the European calendar are the informal leaders' meeting on November 13 in Dublin and the Summit on November 26 and 27. Although the latter has the multi-year EU budget as its main subject, Athens will attempt to utilize the meeting to bring back to the table the request for greater fiscal space to address the impacts of energy dearness.
The main objective
The central objective is to secure the Commission's consent so that out of the total amount of 1 billion euros connected with the energy escape clause, 300 to 400 million euros can be allocated for targeted support of vulnerable households. The Greek side seeks to broaden the utilization of these specific funds so that they are not restricted exclusively to energy infrastructure investments, but can also cover immediate consumer support needs.
Second package of measures
Until the European landscape clears, the government has already activated a second package of measures to limit burdens on fuel and heating, while keeping open the possibility of a third cycle of interventions. For the period from November 1 to 15, a state subsidy of 20 cents per liter on heating oil, 15 cents on diesel fuel, and 10 cents on gasoline is foreseen. On heating oil, the total discount reaches 40 cents per liter, taking into account the participation of refineries, while the heating allowance has been increased by 30 percent. Meanwhile, the platform for submitting applications for the heating allowance opens today, with households having a deadline until December 4 to submit their applications.
Marios Christodoulou
www.bankingnews.gr
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