The return of subsidies to Greece, with the restoration of , is part of a wider framework that is taking shape internationally, as the one that triggers the, begins to affect with intensity, economies and societies all over the world.
At the heart of the crisis is the Straits of Hormuz — one of the planet’s most important energy arteries. Before the conflict, about 20% of the world’s oil passed through this passage. Today, traffic is almost at a standstill.
In this environment, governments around the world are called upon to respond with different means, depending on their fiscal capabilities, priorities and degree of energy dependence. From subsidies and tax interventions to restrictions on consumption and changes in everyday life, the energy crisis is already translating into different coping strategies around the world.
Europe: Political pressure and fiscal limits
In Europe, the crisis highlights a familiar but now more limiting dilemma: how to support households and businesses without derailing public finances.
In contrast to 2022, when Member States made extensive support packages available, today the margins are clearly smaller. Deficits remain high, borrowing costs are high and defense spending needs are intensifying.
As a result, interventions are more targeted and often more technical:
- Spain and Poland are moving ahead with significant reductions in VAT on fuel, seeking immediate relief for consumers.
- Hungary opts for strict price caps, but with restrictions targeting domestic consumption, in order to prevent “fuel tourism”.
- Germany and Austria are moving towards regulatory interventions, limiting the frequency of price increases at gas stations.
- In France, instead of fiscal interventions, the government is attempting to shift some of the responsibility to energy companies by asking for voluntary price caps.
Beyond the West
If in Europe crisis management translates into fiscal calculations, in many other regions of the world it takes on more immediate, practical dimensions.
In countries with high energy dependence, governments are resorting to lifestyle measures:
- Sri Lanka introduces four-day working week to save fuel.
- Laos restricts the operation of schools.
- In South Korea, citizens are being asked to reduce their consumption of hot water.
- Thailand’s prime minister appeared in short-sleeved shirts, urging others to do the same as government agencies are required to limit the use of air conditioners.
- In Egypt, malls, restaurants and retail outlets now close at 9pm. on weekdays — a significant change for a country used to working late into the night. Egypt is also planning to limit public lighting and reduce the operation of government services, while the implementation of teleworking is also being considered.
- Bangladesh, whose economy relies heavily on garment industries that export clothes worldwide, has already begun imposing energy-saving measures to keep the lights on in factories. Half of the country’s electricity is powered by natural gas, a third of which is imported. So the country has announced early Ramadan holidays, closing university campuses to conserve electricity and has begun imposing temporary blackouts.
- In Australia, two states will offer free public transport to incentivize people not to drive.
