The European Union plans to allow member states to moderately relax budgetary flexibility in order to alleviate the cost pressure on the economy and people’s livelihoods caused by rising energy prices.

The current European energy market remains volatile, and high energy prices have imposed a significant burden on the daily lives of residents and business operations in many EU countries. The introduction of this budget adjustment policy is aimed at providing more policy flexibility for member states, supporting them in implementing targeted subsidies and assistance measures to better address challenges in the energy sector and ensure stable social and economic operations.