The European Central Bank calls for the abolition of energy subsidies

Luis de Guindos, vice president of the European Central Bank (ECB), said that the member countries of the European Union (EU) must put an end to the various support programs that they have implemented due to the energy crisis.

Guindos made statements at the meeting of the European Parliament (EP) Economic and Financial Affairs Committee held in Brussels.

Recalling that peak inflation in the euro zone in October was set at 7 percent in April, Guindos said “core inflation remains high, partly due to input cost pressures.”

Guindos explained that the upside risks for inflation are higher-than-expected wage increases and profit margins, as well as exceeding long-term inflation expectations targets.

Recalling that the inflation outlook has remained high for a long time, Guindos recalled that the ECB decided to again raise the main policy rates by 25 basis points at its last meeting, saying that policy decisions will be made in accordance with the assessment of economic and economic conditions. financial data and the main dynamics of inflation.

HIGHLIGHTED THE IMPORTANCE OF FINANCIAL POLICIES

“An important factor for future inflation prospects is the fiscal policy stance,” Guindos said.

“As the energy crisis eases, governments must immediately and harmoniously reverse the relevant support measures,” said Guindos, who stressed the importance of fiscal policies aimed at making economies more efficient and gradually reducing high debt. public.

EU member states have implemented many support measures and programs against rising natural gas and electricity prices with the war and energy crisis between Russia and Ukraine last year.

These energy subsidies place a serious burden on the public finances of the Member States. (AA)