European countries have spent almost 800 billion euros (£708 billion) to protect households and businesses from soaring energy prices.
According to analysis by the consultancy Bruegel, EU countries have now spent or spent 681 billion euros on energy crisis spending, while the UK has allocated 103 billion euros and Norway just over 8 billion euros.
Germany is by far the biggest spender, spending almost 270 billion euros as of September 2021.
The figures mark a sharp increase since the last report three months ago as countries faced the impact throughout the winter of Russia cutting off gas supplies to Europe last year.
Bruegel said governments have so far focused most of their support on non-targeted measures such as cuts in VAT on petrol or retail electricity price ceilings.
But it warned support should now be targeted at income levels as countries begin to run out of fiscal space to sustain such generous funding.
Read the latest updates below.
08:12 am
America is surpassing us on green fuels, warns British Airways chief
ICYMI – Rishi Sunak is falling short of one of the UK’s leading green policies, says the chief executive of British Airways’ parent company.
Oliver Gill There’s a story:
In a rare intervention, Luis Gallego, chief executive of the International Aviation Group (IAG), said Britain was lagging behind the US in producing green aviation fuel because of the Government’s inaction.
Writing in the Telegraph, Mr Gallego said “time is running out” for the UK as the US takes the lead thanks to billions of dollars in White House subsidies.
He said: “If there are not enough of these alternative fuels available, which are not currently available, the UK aviation industry’s net-zero ambitions will be at risk.
“Jet Zero” is one of 10 commitments made in November 2020 under Boris Johnson’s £12 billion program to deliver a “green industrial revolution”. The Government’s 10-point plan said: “Moving to sustainable fuels is one of the key steps to success that we can unlock.”
A strategy to achieve net zero aviation by 2050 was then published last summer.
08:01 am
FTSE 100 opens higher
The FTSE 100 got off to a good start as markets awaited the latest inflation data this week.
The blue-chip index gained 0.2% to open at 7,895 points.
07:47 am
NatWest owners line up for £1 million bonus
NatWest is reportedly poised to give its chief executive an annual bonus of almost £1m – the first bonus since a bailout in 2008.
Alison Rose, 53, will receive a payout of up to £953,700, split into cash and shares, the Times reported.
That amount will be equivalent to 85% of her annual salary and comes after the high street bank cashed in on rising interest rates last year.
NatWest last year said it plans to start paying management cash bonuses, while warning that compensation is falling too far behind rivals.
07:38 am
UK companies pay more and hire less
UK companies plan to cut hiring as the economic outlook turns bleak, but worker shortages mean they will pay record wages to the staff they need.
A report from the Notary Development and Personnel Institute shows the typical UK employer is planning to raise wages by 5% – the highest since filings began in 2012.
The industry group said more than half of companies intend to recoup costs by raising prices rather than seeking to save, a move that risks pushing inflation higher.
“The opposite occurred 12 months ago, suggesting that a tight labor market will increasingly lead to price increases for organizations’ goods and services,” the CIPD said.
The UK narrowly avoided a recession at the end of 2022 as the economy flattened, but many economists forecast a recession this year. This week’s data is expected to show inflation remaining in double digits.
07:30 am
Good morning
European nations have splashed out nearly 800 billion euros in energy support measures as the continent continues to wobble over Putin’s gas cuts.
Germany is by far the biggest spender, having spent almost 270 billion euros since September 2021. EU nations have spent a total of 681 billion euros, while the UK has allotted 103 billion euros, according to the group. Bruegel Consulting.
But the think tank warns that most of the support so far has been untargeted and urges governments to change their approach.
“Instead of de facto fossil fuel subsidies, governments should now promote more income support policies targeting the two lowest income groups,” said Giovanni Sgaravatti of Bruegel. in income distribution and towards strategic sectors of the economy.”
5 things to start your day
first) America is surpassing us on green fuels, warns British Airways chief – Luis Gallego says aviation decarbonization target is ‘at risk’ unless more action is taken to boost the industry
2) The buy-to-rent boom saw 66 rental homes disappear every day – Soaring mortgage rates and tax hikes push homeowners out of the real estate market
3) AI song-making tool threatens ‘long-term harm’ to artists, Universal warns – The world’s largest record label warns of loosening copyright laws to promote AI creativity
4) How Britain’s disrupted housing market is disrupting growth – A dysfunctional property market is exacerbating Britain’s productivity crisis
5) One million more people face savings tax under Hunt’s sneak attack – Egg nests are threatened by rising interest rates and frozen tax thresholds
What happened overnight?
Asian shares fell and the dollar rose on Monday as investors focused on US inflation data that could alter the outlook for interest rates globally, while accelerating or reversing gains recent spike in bond yields.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, after losing 2.2% last week.
Japan’s Nikkei fell 1% and South Korea 0.7%. Meanwhile, China’s blue-chips edged up 0.6% on strong data on bank lending.
Hong Kong stocks fell at the start of trading, with the Hang Seng Index down 1.32%.
The Shanghai Composite Index fell 0.11%, while the Shenzhen Composite index on China’s second exchange fell 0.05%.
