European energy ministers are due to meet on Monday to discuss a new EU Energy Package, as the Socialists & Democrats (S&D) group says the bloc should use its Green Deal climate plans to cut exposure to energy price shocks and reduce dependence on imported fossil fuels.
Energy prices surged after the Covid-19 lockdowns ended because global demand rose faster than supply could adjust, the organisation said in its latest statement. Prices rose “everywhere, not only in Europe,” the S&D group pointed out in a statement on Friday.
A second shock followed Russia’s invasion of Ukraine in 2022, which cut gas flows to Europe after years of reliance on Russian fossil fuels.
The price spike was driven by geopolitical risk and dependence on a single supplier, the leftist group said.
It noted that instability in the Middle East is affecting energy markets, describing an “illegal war” involving the United States and Israel against Iran.
Gas prices have doubled “as a result of the war in the Middle East”, it said.
Renewables, investment and consumer support
Europe has underinvested in the energy transition, including renewables, electricity grids, storage and energy efficiency, according to the statement.
It cited a report on European competitiveness by former European Central Bank president Mario Draghi as saying Europe faces a “massive investment gap”.
Renewable energy is the cheapest and most stable energy Europe can produce today, the S&D group declared.
Wind and solar do not rely on imported fuels and, once built, can generate power at very low cost, it added.
The statement pointed to “social leasing” schemes in France, which it said allow lower- and middle-income families to access electric vehicles through affordable monthly payments.
It also cited Spain’s high share of renewable electricity and a temporary policy that decoupled gas prices from electricity generation, saying Spanish consumers saw lower price volatility than in many other European countries.
It argued the EU’s Social Climate Fund is in place to support households, home renovations and small businesses during the transition, and called for member states to use it fully.
The statement also backed an “Industrial Accelerator Act” and defended the EU’s Emissions Trading System — a carbon market that requires polluters to buy permits — calling it an effective policy.
