Europe proposes tax breaks, restrictions to shield member states from rally in energy

The European Union laid out its can-do list for member states to help protect its most vulnerable companies and households from the unprecedented surge in energy prices.

The rally in natural gas to power and emission permits is hurting everyone from German chemicals producers to Spanish households just as the economy is recovering from the pandemic. Calls for coordinated action are getting louder and the bloc said on Tuesday it expects high prices through the winter.

Measures include shortterm tax cuts for parts of the population and aid to industry to cope with rising costs, according to the European Commission. The plan is designed to support the green transition without increasing the use of fossil fuels.