The EU could lose 1.3 million jobs due to energy costs.

VTV.vn - Energy price fluctuations, stemming from the conflict in the Middle East, could eliminate up to 1.3 million jobs in the European Union (EU) this year alone.

The EU is easing spending regulations to address the energy crisis.

This is a worrying new warning issued by the European Commission. Energy-intensive industries will be most affected. The automotive industry faces the highest risk of job cuts, potentially affecting up to 600,000 workers. Other core sectors such as construction, chemicals, metallurgy, and even green energy projects like batteries and solar panel production also face significant risks. Besides the wave of layoffs, pressure from fluctuating energy prices will also directly impact people, with low-income EU households having to spend nearly 1.5% more on transportation fuel.

In addition, on June 3rd, the European Union (EU) eased spending regulations to help member states cope with the energy shock caused by the conflict in the Middle East, as successive crises have left countries in financial difficulty.

The European Commission (EC) has published an assessment of the financial situation of member states, reprimanding France and Italy, the EU's second and third largest economies , along with Bulgaria and eight other member states for violating EU spending rules. According to EU regulations, budget deficits cannot exceed 3% of Gross Domestic Product (GDP).

Amidst soaring energy prices due to conflict in the Middle East, the EU announced a relaxation of some financial regulations to help member states overcome difficulties. European Commissioner for Economic Affairs Valdis Dombrovskis stated that the EU made this decision after realizing the energy crisis would last longer than initially anticipated. Accordingly, the EU will allow member states to spend up to 0.3% of their GDP annually, totaling 0.6% of GDP until 2028, to support measures aimed at reducing fossil fuel use. However, measures such as the reduction in excise tax on fuels implemented by Italy in March will not be exempt.

Source: https://vtv.vn/eu-co-the-mat-13-trieu-viec-lam-do-chi-phi-nang-luong-100260604091908479.htm