The EU's energy crisis may escalate into a fiscal crisis
According to sources cited by the Financial Times, the energy crisis in the EU triggered by the escalation of tensions in the Middle East could further evolve into a fiscal crisis.
EU officials have urged governments to avoid excessive subsidy policies aimed at offsetting the pressure caused by rising energy prices, while also issuing warnings that conflicts related to Iran could trigger a fiscal budget crisis.
The European Commission has explicitly called on member states to temporarily restrict the scope and intensity of energy subsidies, tax reductions, and various preferential policies. Brussels' move aims to prevent a repeat of the 2022 energy crisis—which previously led to soaring inflation and expanded fiscal deficits across the EU.
Dan Jørgensen, the EU Commissioner for Energy, told the Financial Times that instability in a single economic sector can easily spill over into society as a whole and the broader economy.
The report further indicates that U.S. strikes against Iran have driven up crude oil and natural gas prices in Europe by approximately 60%, while sparking concerns over shortages in diesel and aviation fuel supplies.
Jørgensen emphasized, "This conflict carries enormous risks—it could drive up inflation and trigger a series of negative chain reactions."
Original article: toutiao.com/article/1861709671633920/
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