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Update on euro area fiscal policy responses to the energy crisis and high inflation

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Article

Checherita-Westphal, Cristina ; Dorrucci, Ettore

European Central Bank

ECB Economic Bulletin

2023

2/2023

1-6

fiscal policy ; government attitude ; energy policy ; inflation

EU countries

Public finance and taxation

https://www.ecb.europa.eu/pub/economic-bulletin/focus/2023/html/ecb.ebbox202302_09~37755e445d.en.html

English

"This box provides updated estimates on the fiscal support provided by euro area governments in response to the energy crisis and high inflation, reflecting the March 2023 ECB staff macroeconomic projections.[2] It updates the budget balance cost of the discretionary energy and inflation compensatory measures to reflect the latest developments in energy prices and changes in fiscal policy since the December 2022 Eurosystem staff macroeconomic projections. It also provides more granular information on the design and timing of these fiscal policy support measures. This includes an assessment of the energy price caps and the quarterly profile of the measures, which help to give a more accurate indication of the transmission of such measures to inflation...."

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