How are EU households and businesses coping with the energy crisis?

The energy crisis sparked by Russia's war in Ukraine continues to loom large over European economies, businesses, and consumers. Europe’s high energy prices have fuelled an 8.5% annual inflation rate in the euro area. In Italy, the cost of living increased by 10.9%.

These punishing price hikes are not only hurting consumers. They also impact energy-hungry companies, like the mozzarella-making factory Gruppo Francia on the outskirts of Rome.

We have 250 employees in our two plants," Massimo Panagia, Chief Executive Officer at Gruppo Francia Latticini told Euronews. "We produce 20 million kilos of cheese in different formats and specialities."

The CEO explained that his energy bills in 2022 were three times higher than the previous year. While investments in biogas and solar panels managed to partly reduce these costs, they still weigh heavily on companies like his.

"In actual numbers, it means €1.3-1.4 million extra cost, [which] was unpredictable. As a result, the cost of our products has been impacted significantly," Panagia added.

Global energy market volatility and soaring prices have prompted the European Commission to introduce measures aimed at easing the burden for EU households and companies who are struggling to make ends meet.

To support the EU’s economy after Russia’s invasion of Ukraine, the European Commission adopted the State Aid Temporary Crisis Framework, in March 2022.

It allows Member States to grant limited amounts of aid to companies affected by the war or the sanctions, offer liquidity support for businesses and compensate for the high energy prices experienced by companies.

In Italy, more than €50 billion worth of state aid has been approved by Brussels, including tax credits.

"Given the energy bill, every