Analysts condemn government's decision to massively subsidize household energy prices

Analysts are criticizing the government's decision to massively subsidize household energy prices. The exorbitant and untargeted measure (the government says households will save €6bn in 2023) is unsustainable, as public finances are in a poor shape. Hungary has been subsidizing household energy prices since last year but has been forced to double them in August; its cap on petrol and diesel prices is leading to fuel shortages. A large share of the Slovak subsidies will go to wealthy households and people with multiple properties. Another problem is the lack of incentive to save. Analysts recommend targeted assistance only to poor households in the form of energy checks.

(Šuster, Kotian, DbP, webnoviny.sk)