So much did the European Union want its new strategy to strengthen the single market that it took time to learn to forget it 19 days of war and practically five hundred hours of crossed speeches on the defense of international law. In order not to overwhelm “with flowers” the most skeptical, nor buy off “with costume jewelry” the critics, the Europeans had to leave their summit this Thursday with something more than the “brotherhood of holy reproach”. The result? A call for de-escalation not only military, but also legislative.
While the European Union's refusal to intervene in the military escalation in the Middle East was like “a hello and goodbye” that “sounded like a question mark”, with Germany signing a document that opens the door to contributing “to efforts to ensure safe passage through the strait”, the delegations were able to confirm certain convergence in favor of diplomacy. “The European Council calls for de-escalation and maximum restraint, the protection of civilians and civilian infrastructure, as well as full respect for international law,” read the conclusions adopted by the TWENTY-SEVEN.
The host of the day, the Portuguese António Costa, wanted to avoid a simple gesture of nice words. Given the experienced peaks in fossil fuel prices, the President of the European Council has urged his counterparts to bet on energy transition as the most effective way to achieve less exposure to shocks like the current one. Specifically, the heads of State and government point out that “accelerating the deployment and integration of renewable and low-emission energies is essential to reduce dependence on volatile markets”. This was one of the keys for the Spanish delegation. When the effects of the war began to be felt in the pockets of citizens, Moncloa began to advocate in Brussels for decarbonization as a response to dependencies.
In fact, the President of the Government himself, Pedro Sánchez, upon his arrival at the summit gave the case of his country as an example.
Thus, the States have urged the Commission to present in the short term measures that address “all components of the price of electricity”. Beyond a strategy for a distant horizon, what is being asked for are immediate solutions that Europeans can perceive almost immediately. Along these lines, the possibility of revising the emissions trading scheme has also been opened, as was foreseen before the bombings in Iran.
The president of the European Commission, Ursula von der Leyen, anticipated the end-of-week discussions and on Monday already sent a letter to the leaders in which she set out the principles of her energy recipe. In the letter, she opened the door for capitals to avoid the premature closure of those nuclear power plants that offered low-cost and safe energy to their respective states. Despite the fact that the recent nuclear turn did not sit entirely well at first, not even with those of her own political party like Friedrich Merz, diplomatic voices recognize that the continent must invest in the production of its own energy “whether green or not”.
Furthermore, the executive floated the idea that those States “that could afford it” would lower the tax rates on energy, without losing sight of the stability of public accounts. Europe invites, hints, opens the door, encourages, but… does not end up deciding. However, the Council asks to take into account the technological neutrality, the specific situations of the Member States and the special exposure of certain industrial sectors to the risk of delocalization.
When analyzing how to intervene in citizens' energy bills, Brussels asks to take into account four key components to be able to draw the complete picture of the current situation. The cost of energy, which represents more than half of the bill; network tariffs, 18%; taxes, 15%; and the cost of carbon, which would be close to 10%. In any case, these are averages that “vary according to the energy mix of each Member State”.
The scenario open at this moment differs from that experienced in the first days of Russia's invasion of Ukraine. Gas reached 300 euros per megawatt hour on average in the continent, somewhat less in Spain. Therefore, European sources explain that, in case the situation worsens, measures would indeed be deployed that, in any case, would be temporary and specific. “We are not talking about a change in the price-setting structure,” they confirm.
As old shoes are abandoned, European foreign ministers rejected this Monday the proposal of the head of European diplomacy, Kaja Kallas, to extend the mandate of the Aspides naval mission towards the Strait of Hormuz. This European deployment currently operates in the Red Sea against attacks on commercial ships by Yemen's Houthi rebels. That said, the Twenty-Seven highlight its role and ask for its reinforcement with more means, warning: “in line with their respective mandates”.
In terms of competitiveness, delegations believe that one of the keys for next year will be for the European Commission to facilitate the free movement of goods by addressing the fragmentation of product labeling and packaging requirements; “also through digital solutions”. After a dozen omnibus packages presented so far, where only the first of them has completed its processing, the States want the executive to present new omnibus initiatives, “including the acceleration of permit granting procedures”.
“Wasting the purse and life”, throughout the summit the Europeans were giving up on the idea of leaving with a concrete package of economic measures, beyond showing their willingness to accelerate the legislative process of the digital euro during this year. It was expected that Von der Leyen would arrive with her strategy “One union, one market” after receiving the mandate during the informal retreat of the Twenty-Seven in February.
Russia
For this reason, Von der Leyen has issued a warning to those who, with the current crisis, advocate for looking back to the Kremlin's fossil fuels: “This would be a strategic mistake,” she explains, as it would make the Union even weaker.
When analyzing how to intervene in citizens' energy bills, Brussels asks to take into account four key components to be able to draw the complete picture of the current situation. The cost of energy, which represents more than half of the bill; network tariffs, 18%; taxes, 15%; and the cost of carbon, which would be close to 10%. In any case, these are averages that “vary according to the energy mix of each Member State”.