EU governments spent €18 billion in 2026 to cushion energy price jump
USO•EU governments spent €17.9 billion in 2026 to cushion higher oil and gas prices for households and businesses. More than two-thirds of the support was not targeted, the European Commission said.
1. Support measures
Twenty-five EU member states enacted fiscal measures to mitigate the impact of high energy prices, at a budgetary cost of €17.9 billion, or 0.1% of EU-27 GDP, in 2026. The Commission said more than two-thirds of the support came through untargeted price measures.
2. Commission recommendations
The Commission urged governments to use short-term, targeted and temporary support, invest in power grids, and tax electricity less than gas to encourage a shift away from fossil fuels. It said borrowing costs for member states had substantially increased and called for fiscal prudence.
3. Economic outlook
The Commission said euro zone growth in 2026 would likely exceed its May forecast of 0.9%, while growth next year was likely to be weaker than the previous forecast of 1.2%. It expects inflation of 3.0% this year and said 2027 inflation was likely to be higher than its previous 2.3% forecast.
