EUROPE BURNS CASH TO HELP BUSINESSES

 

EUROPE BURNS CASH TO HELP BUSINESSES

Germany nationalised gas importer Uniper on Wednesday and Britain said it would halve energy bills for businesses in response to a deepening energy crisis that has exposed Europe’s reliance on Russian fuel.

Russian President Vladimir Putin added to the upward pressure on energy prices by announcing a partial military mobilisation, in the biggest escalation of the Ukraine war since Moscow’s Feb. 24 invasion.

European governments had already earmarked almost 500 billion euros ($496 billion) in the last year to shield citizens and companies from soaring gas and power prices, according to research by think-tank Bruegel.

• Uniper has been among the biggest corporate casualties, with Germany earmarking an additional 8 billion euros on Wednesday in the latest step in a 29 billion euro bailout.
• France, also among the high spenders, will allocate 9.7 billion euros to take full control of utility EDF.
• Britain said its new plan to help businesses would cost “tens of billions of pounds.”
• “We have stepped in to stop businesses collapsing, protect jobs, and limit inflation,” Britain’s finance minister Kwasi Kwarteng said of the cap on wholesale electricity and gas costs for businesses, which is set to apply from Oct.1