EU warns capitals against turning energy crunch into fiscal crisis and urges governments to avoid excessive support to offset surging energy prices, according to FT

The EU's warning against excessive fiscal support amid the energy crisis signals a cautious approach to managing economic strain without exacerbating debt levels. This could influence market sentiment across risk assets, as countries weigh targeted support against the backdrop of rising energy costs. Investors should watch for potential shifts in fiscal policies and their implications for broader economic stability in the region.