The disruptions in global supply chains caused by the pandemic, combined with the consequences of the Russian war in Ukraine, are driving up prices for energy, commodities and basic necessities.
According to “Archyde.com”, there is a list of some of the measures taken by governments with the aim of supporting consumers and companies who have been severely affected by these difficulties.
Starting with Africa and the Middle East, South Africa announced in late July a cut in fuel prices. Meanwhile, the UAE has doubled its financial support for low-income Emirati families.
Turkey in early July raised the minimum wage by about 30 percent, in addition to the 50 percent increase at the end of last year.
In the Americas, the United States is helping millions of indebted former students by canceling $10,000 in loans. The move follows the $430 billion “Inflation Reduction Act” unveiled last month, which includes cuts to prescription drug prices and tax credits to encourage energy efficiency.
While the Brazilian oil giant Petrobras announced on the first of September to cut gasoline prices by 7 percent, which is the fourth consecutive reduction in gasoline prices since mid-July. The Brazilian government in July also cut fuel taxes and increased welfare payments.
While the President of Mexico said earlier this month, “The government of his country will meet to strengthen its plan to combat inflation.” In August, officials said an anti-inflation support package aimed primarily at helping lower gasoline prices and domestic energy bills has already cost about 575 billion pesos ($29 billion) this year.
Chile announced in July a $1.2 billion aid plan that includes employment support and a one-time payment of $120 for 7.5 million of its 19 million residents.
In Europe, Britain is set to cap energy bills for consumers for two years, with billions in support of energy companies. The package, announced by the new prime minister, Liz Truss, on September 8 is likely to cost more than 100 billion pounds ($115 billion).
While Portugal launched a €2.4 billion aid plan aimed at reducing the value-added tax on electricity to 6 percent from 13 percent, it also provided one-time support payments to workers, families and retirees.
Croatia will set a ceiling on electricity prices from October 1 to March.
Germany will spend at least 65 billion euros ($64.71 billion) to roll out a new package to protect consumers and businesses from the effects of inflation. The plan includes imposing taxes on exceptional profits for some companies, increasing social benefits and extending public transportation subsidies.
Berlin had already announced the imposition of duties on gas prices for consumers from October 1, while in July it approved a government rescue plan worth 15 billion euros ($15.05 billion) for Uniper, Germany’s largest gas importer.
Spain will cut its value-added tax on gas to 5 percent from 21 percent starting in October to help families pay bills. The government has also reduced the value-added tax on electricity twice over the past year to 5 percent.
Finland and Sweden will allocate billions of dollars to ensure liquidity for energy companies in the two countries. The Swedish government said in August that it expects to allocate SEK 90 billion to help consumers pay record-high electricity bills.
Italy’s Cabinet Office said the government plans to spend at least an additional 6.2 billion euros ($6.2 billion) to help families and businesses. The bill would come on top of a package of about 52 billion euros that Rome has already budgeted this year to cushion the impact of very high prices.
Denmark in August imposed a cap on annual rent increases of 4 per cent for the next two years. The move follows other relief measures, including a 3.1 billion kroner ($415.03 million) package announced in June.
For its part, the French Parliament adopted on the third of last month a bill for subsidies worth 20 billion euros, raising pensions and some social welfare payments, while also allowing companies to pay higher tax-free bonuses. In August, the government said it “does not rule out a tax on exceptional corporate profits”.
Poland last month approved a new package that includes subsidies for heating stations whose price increases will not exceed 40 percent, and cash transfers of 13.7 billion zlotys ($2.90 billion) to municipalities to help residents pay high energy bills. The government in July also introduced a relief plan for local currency mortgage holders.
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