EU measures to ease pain of expensive energy must have end date

European governments' measures to alleviate the impact of high energy prices on businesses and consumers must have a clear end-date and be focused to avoid the mistakes of the energy crisis of 2022, European Economic Commissioner Valdis Dombrovskis said.



Speaking at the International Monetary Fund, Dombrovskis said any moves to ease the pain of the high prices caused by the closure of the Strait of Hormuz as a result of the U.S.-Israeli war on Iran should avoid boosting demand for fossil fuels.



"One key lesson from the last energy crisis is that measures were often insufficiently targeted and remained in place for too long, making them much more fiscally costly than necessary. This is something we want to avoid now," Dombrovskis said in a conversation with IMF European Department head Alfred Kammer.



He said higher debt and deficits as well as higher interest rates than during the 2022 energy crisis caused by Russia's war on Ukraine made it now more important for EU governments to avoid costly, lengthy measures to cushion energy price spikes.