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ECB warns energy price caps and tax cuts risk distorting market signals

( April 21, 2026, 10:04 GMT | Official Statement) -- MLex Summary: Price caps and tax cuts to offset higher energy costs risk distorting market signals and weakening incentives to reduce consumption, European Central Bank President Christine Lagarde said on Monday, as governments weigh support measures amid supply disruptions. Broad, open-ended schemes can delay adjustment in energy demand and complicate the response to shortages, she warned in a speech, calling instead for targeted, temporary measures that preserve price signals.Full speech follows, and can be found in the attached files....

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