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Next Previous Government measures do not deter accuracy HOME • INSIDER • CYPRUS • Government measures do not deter accuracy
& nbsp & nbspTheano Theiopoulou & nbsp; & nbsp;
Extraordinary, horizontal and targeted measures have been taken and are being taken by European governments, including the Cypriot one, to support vulnerable households and businesses against the precision that began during the pandemic and culminated after the Russian invasion of Ukraine. Consumers across Europe have been feeling the brunt of rising prices for electricity, gas, fuel and almost all commodities on supermarket shelves since mid-2021. No one can now predict with certainty what the sequel will be and how long the wave of accuracy will last.
The governments of many countries since March, shortly after the Russian invasion of Ukraine, have rushed to announce measures to alleviate the suffering of citizens and businesses affected by the rapid rise in energy and fuel prices. Horizontal measures, such as the temporary imposition of a ceiling on energy prices or reductions in taxation and excise duty, have been decided by several European countries, such as France, Spain, Poland and Belgium, in response to the wave of accuracy. The relief measures implemented by European governments are adjusted according to rising prices, seasons (temperature and seasonal needs). This text presents the latest measures implemented by the states.
READ ALSO: & nbsp; Horizontal accuracy, targeted measures
In addition to the tax arm of the measures or the payment of lump sums to support vulnerable households, measures with an ecological background are being implemented or promoted, e.g. for energy savings. For example, the European Union's recommendation to reduce energy consumption has been implemented by some countries, with priority given to energy-intensive air conditioning.
For example, the governments in Italy and Spain have decided to recommend or enforce the use of air conditioners in public buildings in the summer in moderation and up to a certain temperature, otherwise a fine will be imposed. Spain will also encourage civil servants to work from home and limit the use of air conditioning in public buildings to reduce energy consumption.
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France: Tackling high inflation is at the top of the Macron's government's political agenda, which has promised a new round of precision measures. France has so far managed to keep inflation lower than other EU countries (excluding Malta), thanks to a € 25 billion package that has largely pushed up gas and electricity prices.
Italy: The government of Mario Draghi recently decided to take new measures against fuel accuracy. In particular, urgent measures on excise duties and VAT have been adopted. In early May, the Italian government approved a package of measures amounting to € 14 billion, to support the country's households and businesses. The Draghi government also approved a € 200 bonus for 28 million employees and retirees, with an annual income of no more than € 35,000. In Italy, the “thermostat operation”, as it was called by the Italian media, predicts that air conditioning in public buildings, including schools and government offices, ministries, etc., can not be set below 27 degrees Celsius during the summer months. In winter, heating systems should not heat buildings above 19 degrees, although 2 degrees above will be allowed in special conditions. Violators are subject to fines ranging from 500 to 3,000 euros. By reducing air conditioning, the government plans to save 4 billion cubic meters of gas this year. The measures will last until April 2023.
Spain: In May, the Spanish cabinet approved a plan that includes temperature controls in public offices, mass installation of solar panels on the roofs of public buildings and will encourage employees to work more from home. In summer, office air conditioning in workplaces should not be set below 27 degrees Celsius. In winter, the heating should not be higher than 19 degrees Celsius. The plan also encourages public service workers to use public transportation or bicycles to get to work and also provides for the lights to be turned off earlier in public buildings. Spanish officials said the measures were aimed at reducing energy use by the central government by 25%.
Germany: From June 1 in Germany, the monthly ticket of 9 euros for urban and long-distance transport by metro, bus, tram, regional trains, is valid throughout the country. Only high-speed ICEs (Intercity Express) are excluded. The single ticket of 9 euros will be implemented for three months and is part of the package to relieve citizens from energy price hikes and the spike in inflation. Thirty million tickets are estimated to be sold in June, July and August. A second measure is the “tank discount”, the reduction of taxes on diesel and gasoline. The aim of the measure is to keep the price of fuel below two euros. The tax rate for gasoline is reduced by 29.55 cents per liter, for diesel by 14.04 cents.
Belgium: Reduce the value added tax on electricity from 21% to 6% from 1 March to 1 July and every household will have a 100 euro discount on their electricity bill in the winter of 2022. Also, the targeted measures announced by the Belgian government are € 80 lump sum to households that meet social criteria.
Denmark: The Danish government has decided, among other things, to subsidize SEK 3,750 (€ 504) to around 320,000 households for the accounts energy. Financing programs for rapid replacement of gas heating system were also announced.
Greece: Greek Prime Minister Kyriakos Mitsotakis announced new measures to support citizens against energy accuracy. These are measures that include the following: The return to the individual bank account of each owner or tenant of a first home, with an annual income of up to 45,000 euros, of 60% of all additional surcharges on electricity, retroactively from December to May. The compensation limit will be € 600. Based on the final finding of the Independent Energy Regulatory Authority, the additional conjunctural revenues of the Power Generation companies will be taxed at 90%. These revenues will be used to relieve Greek households and businesses. The Greek government has been launching a system since July that disconnects international gas increases from the country's electricity bills. An indirect ceiling is set and the prices that reach the consumer are stabilized. Thus, the adjustment clause is effectively suspended and the overpayments of the energy companies are cut with a knife.
Package of measures amounting to € 300 million in Cyprus
In Cyprus, the government has already taken targeted measures, which it announced through two packages of measures totaling € 300 million. The latest 11-meter package, worth € 103 million announced by the Minister of Finance two weeks ago, focuses on five pillars , to support retirees, vulnerable groups and to renew existing electricity and fuel measures. The last pillar is the support measures for farmers. The government in the form of urgency passed last Thursday a bill to extend the reduction of excise duty on fuel. The bill concerns the temporary and for a defined period, until 31/9/2022, reduction of the excise tax rates for the purpose of mitigating the financial costs borne by the consumer public and businesses, as one of the eleven measures promoted to mitigate the effects of the ongoing Ukrainian crisis.
Inflation struck before the war
The energy crisis in Europe began to show its teeth in mid-2021 and & nbsp; triggered an uncontrollable inflation domino that threatened economies, businesses and households. The European Union was initially watching, hoping that there would soon be an automatic de-escalation and normalization of energy prices. By the end of 2021, Brussels was refusing to take substantive action on the crisis, hoping that inflation would be transient, leaving households and businesses in Europe facing high electricity and gas bills, the costs of which were eventually shifted to other key items. consumption. The sharp rise in accuracy was recorded after the Russian invasion of Ukraine and the energy war of the West – & nbsp; Russia that followed. As of March 2022, European governments have not been able to announce measures, which are either being revised or strengthened, but which have generally proved to be insufficient.