The European Commission is insisting that proposed energy subsidies, tax cuts and price caps be limited in time and scope. Photograph: Brian Lawless/PA WireEU officials are urging governments to avoid excessive support to offset surging energy prices, warning that the shock triggered by the Iran war could tip into a fiscal crisis. The European Commission is insisting in discussions with member states that proposed energy subsidies, tax cuts and price caps be limited in time and scope, according to people briefed on the talks. Brussels is seeking to avoid a repeat of the 2022 energy crisis, which fuelled rampant inflation and ballooning deficits. “Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument,” they said.

Source: The Irish Times April 07, 2026 03:40 UTC