Valdis Dombrovskis said support measures for businesses and households must be temporary and carefully targeted to limit fiscal strain and avoid distorting energy demand, News.Az reports, citing CNN.
Call for targeted and time-limited support
Speaking at the International Monetary Fund, Dombrovskis stressed that any intervention should include clear end dates to prevent prolonged and expensive subsidies.
He said previous measures introduced during the 2022 crisis were often too broad and remained in place longer than necessary, significantly increasing costs for governments.
“One key lesson from the last energy crisis is that measures were insufficiently targeted and remained in place for too long,” he noted, warning against repeating that approach.
Avoid boosting fossil fuel demand
Dombrovskis also cautioned that efforts to ease the impact of high prices should not lead to increased consumption of fossil fuels.
He emphasized that policies should align with long-term goals of reducing demand for oil and gas, even as governments respond to short-term market disruptions linked to geopolitical tensions.
The latest price pressures have been driven in part by instability surrounding the Strait of Hormuz, a critical route for global energy supplies affected by the ongoing US Israeli conflict with Iran.
Fiscal constraints heighten urgency
The commissioner highlighted that current economic conditions make disciplined policy even more important than in 2022.
Higher public debt, wider budget deficits and elevated interest rates across Europe mean governments have less room to deploy large scale, long lasting support packages.
Dombrovskis made the remarks in a discussion with Alfred Kammer, underscoring the need for coordinated and fiscally responsible responses across the European Union.
Balancing relief and long-term goals
The warning reflects a broader effort within the EU to balance immediate relief for consumers with long-term energy transition objectives.
Officials are increasingly focused on designing measures that cushion the economic impact of energy shocks without undermining climate targets or placing excessive strain on public finances., News.Az reports, citing CNN.
