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.

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