Eurofound report outlines European response to cost of living crisis

Between April and June 2026, European governments implemented over 125 distinct measures to mitigate the cost of living crisis and address widespread energy instability. According to a report published by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) this Wednesday, these interventions aim to support both citizens and businesses amid rising economic pressures.

Energy security has been severely undermined following the closure of the Strait of Hormuz, which disrupted global oil and natural gas supplies and intensified inflationary pressures. This disruption, coupled with rising costs for transport and food, has caused a significant decline in household disposable income and heightened the risk of energy poverty, particularly among low-income households. The research highlights a convergence in national policies, which focus on short-term relief for immediate financial impacts alongside long-term strategies to diversify energy sources and reduce dependency on external supplies.

The findings underscore the systemic challenge facing European member states as they attempt to stabilize their economies while transitioning toward more secure and diversified energy infrastructures.