According to the International Monetary Fund, the cost of living of European households should increase by an average of 7 percent in 2022 due to increased fossil fuel prices. In the analysis published on July 29, it is observed that the largest share of energy expenditure is in the Czech Republic (16.1%), the smallest – in Finland (6.1%).
The share of energy expenditure in each country also depends on the level of household income. For example, in the Czech Republic, 10 percent 12.6 percent of earners spend the most on energy. expenses, and 10 percent 18.8 percent of those who earn the least. In Finland, these indicators are 5.2 and 5.1 percent, respectively.
In Lithuania, according to the IMF, energy costs reach an average of 10 percent. The tenth of the population with the highest income spends 8.7 percent on this. of all household expenses, and the tenth of those receiving the lowest income – 10.6 percent.
Expenditure on energy, that is, expenditure on coal, electricity, gas, fuel, etc.
The IMF analysis states that in 2022, European household spending on coal should increase by an average of 49.9 percent, electricity by 72.5 percent, gas by 121.6 percent, gasoline by 36.3 percent, and diesel by 39.2 percent. percent
Governments in Europe are taking a variety of measures to protect consumers from rising energy prices. One of the simplest is one-time payments.
Analytical Center “Bruegel” has collected data that 150 euros should be paid to households in Austria. “This amount would be doubled for the poor,” his report said.
In France, a one-time payment of 100 euros is intended to be paid out to 5.8 million people. households that have already received coupons for energy.
In Greece, EUR 200 benefits have already been paid to pensioners with the lowest incomes in April this year.
In the near future, German residents should receive probably the most generous benefits in the Community – 300 euros each.
At that time, in neighboring Latvia, according to “Bruegel”, it was planned that 150 thousand the most vulnerable households should receive between 15 and 20 euros to pay their electricity and gas bills in November and December.
Will increase MMA and NPD
As you notice State control Jaroslav Mečkovski, Chief Economist of the Department of Budget Monitoring, public finances are limited, as long-term expenses grow, and without permanent sources of income to cover them, the public debt also grows.
“The European Commission reminds all countries that it is possible and necessary to react quickly and effectively to the situation, but such measures should not last longer than a few months due to the high burden on the budget and the desire to reduce energy consumption.
Thus, in the case of Lithuania, when thinking about one-time expenses and their coverage, expediency is necessary in order not to worsen the situation of public finances, because, with rising interest rates, you may have to pay much more expensively in the future. All measures must have a very clear purpose. The perspectives of social justice and adequacy are also very important, for example, if lump sum payments were given to everyone, would those who really need it the most get enough,” he observed.
As announced, after the Government approved proposals to increase the minimum monthly wage to 840 euros in 2023, and the NPD – to 625 euros, all “paper” earners between 840 and 1,704 euros will receive an increase of 24.48 euros.
“Electricity price compensation is extensive and costly. Compensation for heating costs is also broad and adaptable to the social situation of a particular household.
In addition, Europe has not matured from a period of high inflation, so after adding everything together, there is simply no room or money left for additional compensations from the budget,” said V. Mitala.
At that time, the elder of the democratic faction “Vardan Lietuvos” Lukas Savickas noted that linking NPD to MMA would have a positive effect.
“In order to avoid large fluctuations in the labor market, we need to consider bringing back compensation to businesses for employee downtime,” he added.
More about additional support for Lithuanian residents should become clear after the presentation of the 2023 state budget. It is planned to do this on October 11.
The premier Ingrid Šimonytė has previously said that more than 1 billion euros will be needed next year to compensate for rising energy prices. euros.
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