---
title: Soon, Europe is about to subsidise energy again. Sounds supportive. But the reality is far more paradoxical
description: "Governments will step in as energy prices surge.\n\nBut here’s the uncomfortable truth:\n\n👉 Many of these same governments helped create the crisis\n👉 By weakening their own energy security\n\n💸 Now comes the real problem:\n\nMost European countries are already running structural deficits.\n\nThey don’t have the fiscal room to absorb another shock.\n\nSo what happens next?\n\n➡️ Subsidies go up\n➡️ Deficits widen\n➡️ Policymakers panic\n\nAnd then the “solution” kicks in:\n\n👉 Higher taxes\n\n🧠 Think about the loop:\n\n• Governments subsidise households\n• Then raise taxes to fund it\n\n➡️ Households end up paying for their own “relief”\n\n(with a bit of redistribution in between)\n\n🔁 And this doesn’t stop here.\n\nThe same cycle is playing out across:\n\n• Healthcare costs\n• Welfare expansion\n• Defence spending\n\n⏳ Until the next crisis hits.\n\nAnd when it does, you’ll hear the same line again:\n\n“We must stabilise the economy.”\n\n💥 Which really means:\n\n• Deficits explode\n• Debt issuance surges\n• Central banks step in\n\n👉 Printing money\n👉 Buying bonds\n👉 Repeating the cycle\n\n📌 Once you see the system, you can’t unsee it:\n\nIt’s a loop of:\n\nCrisis → Spending → Debt → Money printing → Repeat\n\n⚠️ Now here’s the part most people ignore:\n\nIf your wealth is tied to assets that:\n\n• Don’t generate real returns\n• Can’t be moved easily\n• Are fully exposed to domestic policy\n\n👉 You are far more vulnerable than you think\n\n(Yes, that includes a lot of real estate)\n\n🧠 The uncomfortable conclusion:\n\nThis isn’t about one crisis.\n\nIt’s about a system.\n\nAnd if your portfolio isn’t positioned for it…\n\n👉 It’s probably mispriced for reality\n\nSource: Financial Times"
---

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# [Soon, Europe is about to subsidise energy again. Sounds supportive. But the reality is far more paradoxical](https://blog.syzgroup.com/syz-the-moment/soon-europe-is-about-to-subsidise-energy-again.-sounds-supportive.-but-the-reality-is-far-more-paradoxical)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Mar 20, 2026, 1:04:28 PM

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