Analysis: European governments set aside €500bn to subsidise gas and electricity bills

The measures to shielc consumers from soaring energy prices are "clearly not sustainable from a public finance perspective," said Bruegel senior fellow Simone Tagliapietra.

European governments earmark €500bn to shield citizens and companies from soaring gas and power prices, according to think-tank Bruegel.

Germany completed the nationalisation of gas importer Uniper, and Britain said it would halve energy bills for businesses in response to a deepening energy crisis that has exposed Europe's reliance on Russian fuel.

Russian president Vladimir Putin added to the upward pressure on energy prices by announcing a partial military mobilisation, in the biggest escalation of the Ukraine war since Moscow's February 24 invasion.