The surge in energy prices triggered by the U.S.-Israeli war on Iran is putting European governments under pressure to help households and businesses, but their financial resources are limited due to strained finances in some major economies. This makes it unlikely they will match the support provided after Russia's invasion of Ukraine three years ago, when subsidies and other assistance ran into billions of euros. However, they may still need to intervene if gas deliveries from Qatar increase, potentially reintroducing some subsidies. The difference from 2022 is that budget deficits across European economies have risen nearly 3 percentage points higher than in 2019 due to the aftermath of the COVID-19 and the energy crisis. Economic growth is weaker than four years ago and interest costs are higher, while European governments are raising defence spending. Spain, Portugal, and Greece have stronger finances but higher spending could compromise their recoveries. Italy's slowing growth could complicate its exit from the European Union's budgetary discipline measures.