Germany is set to end in late June a temporary fuel-tax cut it had introduced to address rising energy prices, local information indicated on the 21st. Ending the cut raises taxes on gasoline and diesel again.

The measure, in force since May, lowered taxes on gasoline and diesel by about 17 cents a liter. As a temporary step, taxes revert to original levels when it lapses, which can raise refueling costs.

Several European countries have supported households with tax breaks and subsidies during the energy crunch. But as fiscal strain grows, a trend of withdrawing temporary measures is emerging, testing the sustainability of cost-of-living policy.

Withdrawing support eases budgets but raises felt prices; sustaining it piles up deficits. Governments face a hard choice in finding a balance between the two.

This paper shows how a distant European cost-of-living policy connects to the world through the shared channel of energy and prices. Its direction offers clues to global consumer sentiment.