Portugal did not comply with the European Commission’s recommendations to reduce subsidies “as quickly as possible” to mitigate the rise in energy prices, nor did it shift it to become more targeted and focused on the neediest families. Brussels therefore advises that the country proceed with the rapid reduction of these measures, in accordance with the European Commission’s opinion on the draft state budget for 2024 reported on. A prefix meaning environment.
Regarding the recommendations to support the mitigation of rising energy prices, “the Commission considers that Portugal’s draft budget plan is not fully consistent with the Council’s recommendation of 14 July 2023.”
The Community Executive Committee is highlighting measures such as the “general reduction in fuel tax and the carbon tax freeze”, which will remain in place in 2024 and 2025 – although gradually reduced. “Most of these energy support measures in 2023 and 2024 do not appear to target the most vulnerable households or businesses and do not fully maintain the price signal to reduce energy demand and increase energy efficiency,” Brussels says.
“Therefore, the Commission calls on Portugal to reduce energy support measures as soon as possible in 2023 and 2024.”