Euro zone grapples with coordinating energy support plans as recession looms
Measures to support the euro-zone economies against soaring energy prices could complicate 2023 budget plans if they need to be extended into the spring, the region’s finance ministers said on Monday, noting the potential impact on already-high inflation. The ministers, representing the 19 countries sharing the euro, are to return to the topic in early December when they discuss 2023 budgets in more detail, but they reiterated such support should be temporary, targeted and not fuel demand. While many of the support schemes, which total around 200 billion euros, or 1.25% of euro zone GDP, expire in the second quarter of 2023, some may have to be extended if prices continue to be high, complicating budget planning.
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