Many Member States have adopted budgetary policy measures to mitigate the social and economic impact of high energy prices on households and businesses. This forecast incorporates the budgetary cost of such measures (newly adopted or credibly announced until the cut-off date of the forecast, i.e. 4 May 2026) of EUR 14.5 bn, or 0.07% of the EU GDP in 2026, with large differences among Member States (see Graph 1). This estimate assumes that the measures will come to an end in accordance with the expiring dates stated in the respective laws at the cut-off date of the forecast. If the measures included in this forecast were to be extended until end-2026, their fiscal cost would increase to EUR 38.6 bn (0.2% of GDP) in 2026 for the EU as a whole.
The Commission has provided a toolbox to address the energy crisis triggered by the conflict in the Middle East. Presented in the AccelerateEU Communication of 22 April 2026, it serves as a basis for coordinated EU actions centred on two core objectives: identifying common principles for the provision of immediate relief to consumers facing energy price spikes, and accelerating the transition to clean, secure and affordable energy. The Commission stresses the need to ensure that the measures do not add to aggregate energy demand and remain aligned with the EU’s long-term strategy of fostering a transition away from fossil fuels, strengthening Europe’s resilience to future shocks. To achieve this, the policy measures should be targeted, timely, and temporary, while preserving incentives to reduce energy demand. These features would also help contain the budgetary cost of the protection provided to consumers, at a time when fiscal space is relatively tight (see Box I.1.1).
Most of the recently adopted support measures are not targeted at vulnerable households or energy-intensive firms. For households, a measure is considered targeted if it applies only to specific groups rather than a majority of the population, based on an assessment of needs. For firms, a measure is considered targeted if it applies only to specific energy-intensive industries. However, three-quarters of the support is being spent in a non-targeted manner, such as through cuts to excise duties or other indirect taxes on fuels. The remaining quarter of the support does appear to be targeted, such as aid to low-income households or subsidies for the transport sector.
Most of the adopted measures seek to directly reduce energy prices. Fiscal policy measures designedto mitigate the social and economic impact of high energy prices can also be classified as ‘price measures’—when they aim at directly impacting the marginal cost of energy consumption—and ‘income measures’—when they provide temporary income support to households or (non-price) compensations to firms. More than two-thirds of the estimated budgetary cost corresponds to ‘price measures,’ such as cuts to excise duties and other indirect taxes on fuels. The remaining one-third corresponds to ‘income measures.’ In a situation of scarcity (where the EU as a whole faces a very inelastic supply curve), the market price is effectively determined by the demand for energy. By suppressing the price signal, ‘price measures’ weaken the incentives to adjust energy demand. Yet, such adjustment may be required when supply is limited, while failing to curb demand for expensive imported energy results in a greater transfer of national income abroad to energy exporters.
This design pattern is similar to the support measures enacted in 2022. So far, however, the fiscal cost of the measures enacted in 2026 is lower than in 2022. According to the Commission estimates, the net budgetary cost of fiscal policy measures enacted to mitigate the social and economic impact of high energy prices amounted to 1.2% of GDP in 2022. ([1]) Of this support, 64% was spent on ‘price measures,’ while the remaining 36% corresponded to ‘income measures’. Only a quarter of the support was targeted to vulnerable groups, with the remaining three quarters spent in an untargeted manner.
Structurally, AccelerateEU aims to accelerate progress towards greater energy independence. A number of actions are proposed to this effect. In particular, the Commission will publish an Electrification Action Plan and establish an electrification target alongside initiatives to increase the uptake of geothermal energy, biomethane, and hydrogen. To step up the electrification of the energy system, the Commission calls on Member States to fast-track negotiations on the European Grids Package for swift adoption before summer 2026. The Commission also intends to adopt a legislative proposal on network charges and taxation. Finally, actions are proposed to boost investment by mobilising both public and private financing for the clean energy transition.
| Graph 1: Measures to mitigate the impact of high energy prices: budgetary cost in 2026 |
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| These estimates include measures that have been adopted or credibly announced in sufficient detail since 1 March 2026 and by the cut-off date of the Commission Spring 2026 Forecast (4 May). The table includes measures to mitigate the impact of high energy prices on households and firms; it does not include measures with other aims, such as public investments to support energy transition. Only measures with a direct budgetary impact for the general government are included. |
| Graph 2: Design of energy support measures, 2022 and 2026 |
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| ‘Price measures’ are defined as those that aim at a direct impact on the marginal cost of energy consumption paid by households or firms; energy consumption includes the purchase of electricity and fossil fuels (gas, oil derivatives and coal) but also heating and transportation as energy intensive. ‘Income measures’ provide temporary income support to households or (non-price) compensations to firms. For households, a measure is considered targeted if there is some form of means-testing involved and if it is not expected to apply to a majority of the population. For firms, a measure is considered targeted if it applies only to specific energy intensive industries. Otherwise, a measure is considered untargeted. |