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Faced with soaring oil prices, London on Monday decided to announce a 15 billion pound aid package for the poorest families, mainly funded by a tax on the profits of oil majors.

The tax, dubbed “temporary”, was set at 25% and would provide £5 billion alone. In all, the British government says it has handed out 37 billion pounds this year.

The European Commission has also just extended the suspension of the Stability and Growth Pact until 2023 to allow member states to continue their inflation-fighting policies, the report said.

Germany

Berlin had already decided in March to double the public heating subsidy it handed out in early February to help the most vulnerable households. Parliament has just voted for billions of Euros in extra aid.
The plan is to introduce a ticket for all public transport in the country this summer at 9 Euros a month, the report said.
The package also includes a one-off payment of €300 to all taxable employees. In addition, families with children will receive an extra family allowance of 100 Euros in July, and the unemployed will receive a special allowance of up to 200 euros. In addition, fuel duty will fall to the lowest level in Europe between June and August, from 14 euro cents to 30 euro cents per litre. Finally, the minimum rate of tax, the basic allowance, was raised, as was the mileage allowance.

The French

The “tariff shield”, which includes a freeze on gas and electricity prices, was put in place in early spring, and Elizabeth Byrne’s new government has announced other measures as part of a revised budget due to be presented after parliamentary elections in June.

It should include higher pensions and minimum social benefits, a general pay rise for civil servants, a reduction in contributions from the self-employed and food checks for the poorest families, the report said.
The tariff shield is also likely to be extended until the end of the year, while Paris is considering a “sustainable and more targeted measure” rather than a fuel price discount of up to 18 euro cents.

Italy

The government has disbursed nearly 30 billion Euros since the start of the year.
The initial measures totalling €5.5bn were announced in mid-February, followed in March by a cut in fuel duty of around 30 euro cents per litre and a 10 per cent tax on “excess profits” of energy sector companies.

The tax was raised to 25 percent in early May as part of a new 14 billion euro package that included a 200 euro bonus for 28 million Italians earning less than 35,000 Euros, the report said. In addition, the fuel tax cut has been extended.

Spain

Madrid announced at the end of March a 6 billion euro package of direct aid to families and businesses. The scheme, which came into effect on April 1 and runs until June 30, includes a subsidy of 20 euro cents per litre of fuel, 15 euro cents from the state and 5 euro cents from oil companies. It also includes capping rent increases at 2 per cent and raising the minimum living income by 15 per cent.

In addition, Spain and neighboring Portugal have persuaded Brussels to allow them to implement a derogation scheme to reduce electricity prices by decoupling them from gas prices in the Iberian Peninsula, the report said.

Rest of Europe

Sweden, which has the highest diesel tax in Europe, put forward a plan of nearly 1.3 billion Euros in mid-March. This includes a tax cut of 1.30 kroner (about 12 euro cents) per litre until October 31st.

Belgium and the Netherlands opted for lower VALUE-ADDED tax on energy (gas, electricity and district heating) and lower consumption taxes on fuel, the report said. Belgium’s poorest households also benefited from delayed “welfare prices” for electricity and gas.

Poland has extended its “inflation shield” and provided assistance to some 5m families. The Hungarian government announced a corporate tax this week. On fuel, however, Budapest has decided that from now on only cars registered in the country will benefit from measures of around 1.20 Euros per litre. Basic food prices have been capped since February.

News from CE. CN.

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