Government action can redistribute the effects of inflation between households, factors of production, and present and future generations, but it cannot wipe out the overall impact. As regards households, interventions calibrated according to their general economic condition rather than individual incomes are more effective in countering the repercussions of inflation on inequality.
Among other things, targeted measures enable the role of prices to be better preserved as an incentive to invest in renewable sources and to save energy. Despite the deterioration of the economic outlook, the most recent assessments by the European Commission indicate that the debt-to-GDP ratio will continue to decline both this year and the next.