President of the European Central Bank Christine Lagard has warned governments in the Eurozone against going overboard in offering support to tackle rising energy prices. She called for adherence to financial discipline and avoiding a repeat of the broad spending policies that followed the war in Ukraine in 2022. These remarks come after the central bank's decision to keep interest rates unchanged. Lagard emphasized that any government intervention to counter the energy shock must be 'temporary, targeted, and carefully designed,' stressing the need to maintain public financial sustainability. These warnings come as Europe continues to face the repercussions of rising energy prices, exacerbated by the conflict in Iran, which has kept Brent crude prices above $100.
