EU alarmed as soaring energy prices threaten recovery

The European Union sounded the alarm on the potential of soaring energy prices to undermine the bloc’s economy, and pledged new guidance for member states struggling to contain the crisis.

The EU didn’t respond directly to respond to nations’ demands for action, and instead vowed to set out recommendations for member states next week on the measures they can take without undermining EU rules. They will include compensation for the most vulnerable households, tax cuts and state aid for companies, EU energy chief Kadri Simson said Wednesday.

“This price shock cannot be underestimated,” Simson told members of the European Parliament in Strasbourg during a debate on the crisis.