June 18, 2024

Taylor Daily Press

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"Europe lowers the ceiling on energy prices"

“Europe lowers the ceiling on energy prices”

Kristalina Georgieva, Managing Director of the International Monetary Fund, does not support the idea of ​​capping the price of energy in Europe. She said this in an interview with the Spanish news agency EFE.

Why is this important?

The International Monetary Fund is a United Nations organization that monitors international cooperation in monetary policy and combating financial crises. 189 member states of the organization.

price ceiling

noticeable: 17 EU member states invite Maximum price of energy, to support the citizens of their country during the energy crisis. Many other countries, including Germany and the Netherlands, oppose this, and how to do this is also being examined Such a price ceiling It can be better implemented. Georgieva gives Spain’s EFE her idea of ​​why it’s not a good plan.

  • The head of the International Monetary Fund warns that member states should think carefully about support measures, to ensure that they do not just devour the state coffers. “Is it okay to help? Yes, but the aim must be good.”
  • We tell ministers and central bank chiefs to sit down and work together. Because if monetary policy is on the brakes, fiscal policy should not drive the accelerator. Otherwise, we’re really going in the wrong direction.”
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Necessary measures

Georgieva stressed that action is necessary. In particular, the consequences of high inflation and the current housing and energy crisis must be addressed. Especially vulnerable people need help first.

High gas prices are hurting households and businesses, and an answer needs to be found. What we suggest is that the measures are very well targeted and temporary.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF)

When asked what she thought of the measures taken by Germany (a €200 billion package), among others, the Bulgarian expressed her comments. She noted that Germany’s package to guide citizens and businesses through the energy crisis is significant, but it will extend over the next three years. Georgieva did not comment on the Spanish package, which is three billion euros for forty percent of the poorest families.