The European Union must provide "immediate assistance" to households and businesses facing a sharp rise in energy prices, European Commission President Ursula von der Leyen told MEPs in Strasbourg on Wednesday.
Since the start of the conflict in the Middle East, gas prices have risen by 50% and oil prices by 27%, Ms Von der Leyen pointed out, who has found herself under fire for her public response to the conflict.
"If we convert these figures into euros, ten days of war have already cost European taxpayers an additional €3 billion in fossil fuel imports." Prices for renewable and nuclear energy have remained stable, she said.
For the President of the European Commission, the EU must examine how to reduce the energy bill by taking into account each component of the bill: the price of energy itself (56% of the bill); network costs (18%); national taxes (15%) and carbon costs (11%).
Concerning taxes and levies, which are a national competence, Von der Leyen noted that some Member States tax electricity more than gas. "One Member State applies a 0% tax on retail electricity, while others apply a tax of more than 16%. There is therefore room for action," she said, as the debate on what measures to take echoes across Europe.
She once again paved the way for a reform of the carbon trading system (ETS), which several Member States have been calling for. Without this system, the EU would now consume an additional 100 billion cubic metres of gas, "which would make us more vulnerable and more dependent," she said. "We need the ETS, but we need to modernise it."
Many MEPs then spoke on the subject of energy, including several Belgians. "The problems facing our industry are being exacerbated by rising energy prices," said Wouter Beke (CD&V, EPP), from the same political family as von der Leyen. "We must therefore act decisively to bring down these prices and increase the competitiveness of our businesses."
Illustrative image. Credit: AFP / Belga
Hilde Vautmans (Anders, Renew) called on the EU to be there for its citizens by lowering gas bills. She pointed out that businesses and industries were already experiencing difficulties due to energy prices before the war in the Middle East began.
Johan Van Overtveldt (N-VA, ECR) referred to the "mea culpa" expressed the day before by the President of the European Commission on the subject of nuclear power. Reducing the share of this energy source was a "strategic error", she said at an event in Paris.
"Precious time has been lost, but we must take control of our energy policy. Renewable energy will not be enough to make us independent," said Van Overtveldt, blaming China's majority market share in solar panels, wind turbines and rare metals. "Let's not replace one dependence on fossil fuels with another."
German MEP Terry Reintke (Greens/EFA) called for a tax on the windfall profits made by oil and gas companies due to the sudden rise in prices. She also reissued a call for the Green Deal objectives to be pursued.
"In the long term, we need a plan to move away from fossil fuels. If I remember correctly, this plan was called the Green Deal, a plan to decarbonise the economy and make the European Union more independent. We must stay on this path, rather than constantly attacking the Green Deal."
