European governments introduced more than 125 measures between April and June 2026 to address rising living costs and instability in energy markets, according to research published by Eurofound on Wednesday.

The measures range from electricity price caps and fuel tax reductions to building renovations and efforts to diversify national energy supplies. More than one-third were designed with the direct involvement of social partners or through tripartite consultations.

Energy disruption deepens financial pressure

The European Foundation for the Improvement of Living and Working Conditions said governments had responded to rising energy prices through measures supporting both households and businesses.

The policies reflect a broadly similar approach across European countries. Short-term measures are primarily intended to limit the immediate financial impact, while longer-term strategies focus on diversifying energy sources and reducing dependence on imported energy.

Eurofound said disruptions to oil and natural gas supplies following the closure of the Strait of Hormuz had increased inflationary pressures, weakened energy security and worsened the cost-of-living crisis.

Higher energy bills, combined with rising transport and food prices, have significantly reduced households’ disposable income. The risk of energy poverty has increased particularly among low-income households and vulnerable groups.

Businesses, especially those operating in energy-intensive sectors, are also facing higher operating costs, affecting their competitiveness and, in extreme cases, their long-term industrial viability.

Four categories of government action

Eurofound’s EU PolicyWatch database was updated between April and June 2026 by the foundation’s national correspondents in the 27 EU member states and Norway.

The measures were classified under four themes:

Sector-specific interventions
Demand management and energy efficiency
Supply-side and structural energy reforms
Social dialogue and collective bargaining initiatives

The database included 82 sector-specific interventions, 60 demand management and efficiency measures, 62 supply-side and structural measures and 11 social dialogue and collective bargaining initiatives.

Eurofound noted that these categories are not mutually exclusive, meaning a single measure may fall under more than one category.

Price caps, subsidies and targeted support

A significant proportion of the policies focused on sectors disproportionately affected by volatile energy prices. Such measures were recorded in every EU member state and in Norway.

In the energy sector, Belgium, France and Hungary introduced measures intended to protect consumers from substantial price increases, including electricity price caps, energy vouchers and credits.

Austria and Spain implemented lower electricity and natural gas tariffs for low-income households.

Direct subsidies to energy providers have also been used in countries including Croatia, Germany and Slovenia to maintain stable prices for domestic and industrial consumers.

Portugal established the Energy Resilience Facility, a credit scheme for businesses affected by the sharp increase in energy costs.

Cyprus among countries reducing fuel taxes

Several countries reduced excise duties on fuel as part of measures targeting transport costs.

These included Cyprus, Czechia, Latvia, Ireland, Romania, Poland and Sweden.

Other transport-related policies included cancelling planned tax increases, imposing limits on fuel prices at petrol stations, subsidising road transport operators and public transport providers, reducing fares and offering free public transport in some countries.

The higher cost of fertilisers and fuel has also placed significant pressure on agriculture and food production.

Eurofound recorded direct financial support for farmers in Cyprus, Greece, Italy and the Netherlands to offset the increased cost of agricultural inputs.

Measures to reduce energy consumption

A second group of measures aims to reduce overall energy consumption, both to ease pressure on prices and to support climate targets.

These include subsidies for building renovations and financial assistance to improve the energy efficiency of homes.

Eurofound cited the Netherlands’ National Heat Fund and measures supporting household insulation and lower heating costs as examples.

The Netherlands also introduced a scheme encouraging low- and middle-income households to exchange petrol and diesel vehicles for used electric cars. A similar programme was reintroduced in Germany in May 2026.

In Spain, the deadline for approving sustainable mobility plans for commuting was reduced from 24 months to 12 months.

The requirement applies to organisations with more than 200 employees, or more than 100 employees working during a single shift, and is intended to reduce energy consumption linked to commuting.

Longer-term changes to energy supply

The third category addresses the underlying causes of energy dependence and price volatility.

These are longer-term structural interventions designed to diversify the energy mix and strengthen the energy autonomy of individual member states.

Malta, for example, is seeking to improve energy security through diversification while also supporting the purchase of photovoltaic systems. The financial support scheme was renewed in April 2026.

Social partners take a larger role

Eurofound found that social partners were involved in developing energy-cost relief packages in several member states.

Their participation was significantly higher than during the design of inflation-related measures in 2022.

In 2026, social partners were directly involved, or participated through tripartite consultations, in more than one-third of the measures recorded.

In Luxembourg, the Resilience Package 2026 includes 20 measures agreed between the government, employee representatives and businesses to address the effects of the energy and economic crisis.

Most of the measures recorded by Eurofound have already been implemented and remain in force, reflecting the urgency of government action at national, regional and local levels.

Source: CNA

Fengaros High #