Further energy-crisis alleviation projected by EC report

The European Commission has projected a further de-escalation of the energy crisis for the rest of the year in its assessment of the impact of measures on Greece’s GDP.

This observation has been included in a post-program surveillance report covering the state of the Greek economy and its developments, just published along with a package of recommendations in the so-called European Semester, part of the EU’s economic governance framework.

Given the rapid decline in energy prices since autumn 2022, expenditure on energy-crisis measures is now expected to be significantly lower than expected, Brussels noted in its report.

The overall cost of energy-crisis measures implemented in autumn, 2022 represented 5.8 percent of GDP, but is now estimated to drop to 0.9 percent of GDP as a result of reduced energy prices, according to the report.

The net cost of energy measures is expected to fall to 0.2 percent of GDP, revised downwards since a 0.5 percent forecast projected last autumn, as a result of a new solidarity levy imposed on refineries.