IMF Tells Europe Not to Repeat Its Costly Energy Crisis Mistakes ...Middle East

The European Union should not overdo fuel subsidies aimed at cushioning the oil shortage blow to businesses and consumers, the International Monetary Fund has warned, adding that some financial pain would prompt demand reduction instead of burdening the state coffers. “Prices help reduce demand and bring supply and demand back into balance. Many measures under discussion weaken that signal,” the head of the European department of the Fund, Alfred Kammer, told Reuters. “We recommend lump?sum transfers to vulnerable households.…

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