Inflation in the euro zone broke a new record in May at 8.1% over one year.
So European countries, like France, have implemented various purchasing power measures to help households.
Beyond a fuel discount, favored by many countries, the boosts revolve around checks and a salary increase.
Overview.
Germany: unlimited train for 9 euros per month and check for 300 euros
The months pass, and prices climb steadily in Germany, where inflation peaked in May at 7.9% over one year (an increase of 0.5 points compared to April), unheard of since the oil shock of 1973. The government of Olaf Scholz thus decided to act quickly and strongly, by freeing up 30 billion euros to relieve households in the face of rising prices, particularly aggravated by the war in Ukraine.
Its last measure at the beginning of June was a success, to the point of saturating the rail network: a flat rate of 9 euros per month to allow Germans to take regional trains at will until the end of August.
Berlin has also introduced a fuel discount of 30 cents per liter for petrol and 14 cents for diesel.
Households are not left out, with a check for 300 euros for all taxable employees, while the most modest households will be awarded additional aid of 100 euros, as well as a bonus of 100 euros per child.
Italy: fuel rebate and energy company tax
Like other European governments, Italian Prime Minister Mario Draghi has also decided to put his hand in his pocket in the face of inflation which is affecting Italy and is close to 7% over one year in May.
The government released 30 billion in two stages, in particular to finance a bonus of 200 euros allocated to the 28 million Italians whose income is less than 35,000 euros gross per year.
The reduction of 30 cents in taxes per liter of fuel, which came into effect from the beginning of April, has been extended until July 8, and revolves around a reduction of 25 cents in excise duties (a tax levied on the sale or use of products such as alcoholic beverages, tobacco products and energy products) and a reduction of approximately 5 cents in VAT.
It is partly financed by a tax on the “excess profits” of companies in the energy sector, which has just been increased from 10 to 25%.
UK: £400 check to pay gas and electricity bills
Increase wages, and help the most modest.
This is how the British government intends to respond to inflation which is exploding in the United Kingdom, where it reached 9% over one year in May.
The government has thus released 15 billion pounds (17.5 billion euros) after the nine billion in February which will allow all households to receive 400 pounds (466 euros) to pay gas and electricity bills for the year 2022. The eight million poorest households will receive an additional 650 pounds (760 euros), while pensioners will also be compensated.
Like Italy, the United Kingdom intends to finance part of these measures with a tax set at 25% on the profits of the oil giants.
Finally, the minimum wage has also been increased.
Spain: increase in the minimum income and tax cuts
Inflation reached 8.7% over one year in May, ie 0.4 points more than in April.
The Spanish government has decided on a plan of 6 billion euros of direct aid which includes subsidies on fuels, an increase in the minimum living income, and the extension of tax cuts intended to reduce electricity bills .
The fuel discount amounts to 20 euro cents per litre: it is financed by the State (15 cents) and by the oil companies (5 cents).
At the same time, Madrid has obtained an agreement with Lisbon from Brussels to reduce the price of gas used to produce electricity in the Iberian Peninsula and ultimately lower consumer bills, under a temporary derogation regime.
Salary increase in Greece, reduction in VAT on electricity in Belgium
Many European countries have adopted a temporary fuel discount, according to the Bruegel Institute, which lists national responses to inflation in Europe.
In Greece, the government increased the Greek minimum wage by 50 euros, to 713 euros gross per month, while Belgium notably granted each household an energy check of 100 euros, in addition to reducing the VAT on electricity by 21% to 6% from March to July.
Estonia, whose inflation reached 20% over one year in May, decided to freeze electricity and gas prices.
