Spending big and badly shows energy crisis risks for Europe


Soaring cost: A coal-fired power plant of the Uniper energy company in Gelsenkirchen. The eurozone is expected to slide into recession over the winter. — AP

PARIS: Crisis-weary European governments that are spending big to cradle their economies through the energy crunch risk causing longer-term harm by spreading fiscal support for firms and households too widely.

With inflation at record levels and central banks rushing to lift borrowing costs to rein in prices, policymakers and economists are warning of a counterproductive clash if countries don’t follow a rule that’s come to be known as the three Ts: temporary, targeted and timely.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Alam Maritim says CEO under remand by MACC
FBM KLCI rises after slow start
Higher profit margins bolster Seng Fong's 4Q bottomline
Maybank to support expansion of Haier Energy's smart energy ecosystem
Ringgit opens higher vs greenback on upbeat GDP data
FBM KLCI slides further as trader attention turns to earnings
Oil treads water as US-Iran peace talks stall, Hormuz shipping slows
Japan's economy grows slower than expected in April-June
Trading ideas: Hextar, Magna, Coastal, Kerjaya, Resintech, Ocean, DPS, Destini, Atlan, Theta, Asiapac, CIMB, Maxis, CelcomDigi, Affin, Carlsberg, Pos, TMC, Comfort
Leaving the dollar a thorny issue

Others Also Read