How European countries try to prevent lowering of life standards and wealth?
In Belgium they have it relatively easier than in the Netherlands. With them, a large part of wages is linked to inflation, so employees automatically have to deal with an indexation of their income. Belgium and Luxembourg are the only EU member states with automatic wage indexation. On average, the purchasing power remains intact. Nevertheless, Belgium has taken measures to reduce excise duties on petrol.
Germany has already taken several measures to reduce the burden on residents. For example, unfocused measures have been taken that ensure that gasoline prices are significantly reduced and taxpayers receive a compensation of 300 euros. Some targeted compensation measures have also been taken. For example, people in social assistance have twice received 100 euros in their account, and families with children receive an additional 100 euros per child.
In addition, the VAT on gas will be reduced from 19 percent to 7 percent as of October. On the other hand, there will be a gas tax, which means that you have to pay 2.40 euros per kilowatt hour for gas.
In addition to fixed compensation amounts and lower taxes, Germany has also taken another measure. To compensate for the high fuel prices, the country has made public transport cheaper for this summer. travellers are allowed to travel for three months for 9 euros per month on local public transport. The measure has already been used extensively, according to the overcrowded trains in the country.
France has now set aside tens of billions to compensate households for the huge inflation. For example, French president Macron has decided to “freeze” the price of gas, and a maximum increase in the price of electricity has been set until the end of this year. People living in poverty are also compensated for the high energy bills. They received 277 euros. People who still use fuel oil for heating can also count on compensation for the higher prices at the end of this year. Fuel prices have also been cut in France, bringing inflation down 2 percent, economists say.
Spain is also taking measures to reduce energy consumption on the one hand and to help households with rising prices on the other. For example, the air conditioning in public buildings, hotels, restaurants and shopping centres should not be lower than 27 degrees. And, in winter, the heating in these places should not exceed 19 degrees. To check this, thermometers must be installed everywhere to verify compliance with the measure. Also, the lighting in shop windows and public areas must be off after 22: 00 if not in use.
In order to accommodate household in the face of rising fuel prices, travel by train can be free or at a high discount in the coming months. This rule is valid from September 1 to December 31 inclusive, according to the Spanish government, travelers can save up to 1000 euros. By the way, the government also calls for working a lot at home, in order to save fuel and travel costs. Earlier, the VAT on gas and electricity was reduced to ten percent.
Prime Minister Sánchez estimates the government’s investment to fight inflation at 30 billion euros.
In Italy, rising prices are viewed with fear. The Italian government is spending billions to help families and for measures to reduce gas consumption by 20%. As in Spain, the heating in public places and shops should not exceed 19 degrees and the air conditioning should not be lower than 27 degrees.
In addition, Italy has stipulated that citizens continue to pay the 2021 gas price. That measure is on top of a number of others, for example the most vulnerable households get a few hundred euros and the VAT has been reduced.