How much have EU countries spent on aid to counter the Iran-related energy shock, and how efficiently was it deployed according to Bruegel?

According to Bruegel, EU states have committed over €10 billion ($11.7 billion) to shield consumers and businesses from rising energy prices driven by the Iran war; however, the spending has not been deployed efficiently, with nearly four-fifths of measures — such as blanket tax cuts — deemed poorly targeted, contradicting European Commission advice that aid should be temporary and avoid boosting demand.

Which two EU countries are the largest contributors to this €10 billion aid package, and what broader economic risks does this spending pose?

Spain accounts for almost half of the total €10 billion aid, with Germany the second-highest spender; the energy shock is worsening the EU’s economic outlook, straining government budgets further if the conflict continues, hitting both growth and inflation in Germany while raising concerns — as voiced by Italian Prime Minister Giorgia Meloni — that not all EU countries have sufficient fiscal headroom to absorb higher energy prices.

Europe Spent €10 Billion on Iran Energy Shock Aid, Bruegel Says

Apr 28, 2026

EU states committed over €10 billion to shield consumers from rising energy prices driven by the Iran conflict, per Bruegel. The think tank criticized inefficient fund allocation as oil prices climbed above $110 per barrel, worsening the economic outlook.

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Europe Spent €10 Billion on Iran Energy Shock Aid, Bruegel Says

Europe Spent €10 Billion on Iran Energy Shock Aid, Bruegel Says

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