EU countries need more 'targeted measures' to tackle soaring energy prices, says IMF's Helge Berger

Published connected 06/05/2026 - 10:56 GMT+2•Updated 11:04

European capitals person failed to supply targeted measures to shield suffering households and businesses from soaring vigor prices, Helge Berger, Deputy Director astatine the International Monetary Fund told Euronews' Europe Today show, urging subordinate states to absorption connected factual solutions for the astir vulnerable.

"Most governments have, successful immoderate mode oregon another, tampered with the vigor prices, which is not the mode it should beryllium going. So arsenic clip passes, if the concern continues, we request to beryllium much targeted," said Berger, who leads the IMF's European Department.

Berger said the main people should beryllium susceptible households and urged EU governments to warrant that measures won't bash "more harm than good" arsenic helium recognised a "mix of bully and atrocious policies" enactment guardant by EU subordinate states since the US-led warfare against Iran sent vigor prices done the roof.

According to the IMF, lipid prices person surged by astir 70%, portion European state prices stay astir 45% supra pre-war levels. Although little terrible than the 2022 shock, the increases are inactive expected to measurement heavy connected growth.

As a response, respective EU governments person lowered vigor taxes, making vigor artificially cheaper and discouraging radical from utilizing little vigor oregon switching to alternatives, Berger warned.

The IMF typical warned capitals against "dampening the terms signal" that results from higher oil, earthy gas, and energy prices, but alternatively to absorption connected targeted support.

Untargeted measures are not the answer

During the Eurogroup gathering connected Monday evening, the IMF informed concern ministers that astir 70% of the full outgo of the measures taken successful 2022, pursuing Russia’s penetration of Ukraine, were either not targeted oregon distorted prices, oregon both.

In the existent vigor shock, the IMF noted that 33% of electricity subsidies, if untargeted, could spell to the 20% richest of the population, compared to 11% for the poorest.

This spread is adjacent wider erstwhile it comes to transport-fuel subsidies, which the IMF identified arsenic perchance benefiting the richest households (34%) alternatively than the poorest (9%) if the measures are untargeted.

The IMF besides noted that vigor ratio gains and a cleaner vigor premix person made Europe much resilient, with European households having 12% little outgo implicit the past 5 years.

Eurogroup person Kyriakos Pierrakakis said connected Monday evening that expectations for a accelerated normalisation of the situation successful the Middle East person not been confirmed, pursuing the gathering of eurozone ministers.

"This is the hard world we are facing, and we indispensable code it with realism and responsibility,” the Greek person said.

He said the IMF recognised Europe’s "positive starting point”, citing a “robust labour market” with “historic" lowest unemployment, but stressed that the effects of the situation are not evenly distributed.

"Net vigor importers and economies with constricted fiscal abstraction evidently look greater pressure. This obliges america to enactment with caution, with well-designed and with targeted policies,” Pierrakakis added.

With the Iran warfare and the closure of the Strait of Hormuz, Europe's dependence connected imported fossil fuels has exposed its vulnerability, but the continent's concern is not arsenic atrocious arsenic it was successful 2022 erstwhile Russia invaded Ukraine, the IMF said.

Berger said the continent is much resilient contiguous acknowledgment to the higher stock of renewables successful its vigor mix.

"Any summation successful vigor prices arsenic good is inactive atrocious for the economy, but it isn't arsenic atrocious arsenic it utilized to be," helium added.