ifo Viewpoint
Europe Must Avoid a Subsidy Race
Clemens Fuest
ifo Institut, München, 2022
ifo Viewpoint No. 241
ifo Institut, München, 2022
ifo Viewpoint No. 241
![](https://www.ifo.de/DocImg/ifo_Viewpoint_2022_241_europa_subsidy_race..jpg?c=1689237021)
The energy crisis – especially the shortage of gas due to a loss of supplies from Russia – is plunging Europe into recession and causing social tensions and distributional conflicts. European governments are eagerly seeking ways to defuse the situation, but they will succeed only if they cooperate closely.