EU countries could improve their strategies to reduce energy prices.

European Economic Commissioner Valdis Dombrovskis stated in a press conference on Monday that EU governments could improve their approach in directing measures to reduce energy prices toward the most vulnerable sectors of the economy.

Many EU countries have implemented measures such as cutting excise or VAT taxes on fuel, which benefit all consumers rather than targeting those who are most affected. This has drawn criticism from the Commission and the International Monetary Fund.

Dombrovskis noted that the initial evaluation of actions taken by member states indicates that there is room for improvement in focusing these measures on the individuals most in need. He mentioned that the current fiscal environment is already constrained due to elevated deficit and debt levels, rising interest rates, and pressing defense spending requirements.

He emphasized the necessity of avoiding past mistakes, advocating for temporary, targeted support measures that do not increase overall energy demand. Dombrovskis also remarked that while countries may choose to implement windfall taxes on energy companies, the Commission does not endorse this approach at the European level.

He pointed out that past experiences with windfall taxes during the 2022 energy crisis yielded mixed outcomes, which is why no EU-wide initiative is being recommended at this time.