European Commission: The Middle East crisis has begun to burden the European economy and requires an urgent response
BRUSSELS, 13 APRIL/WAM / President of the European Commission, Ursula von der Leyen, said today that the repercussions of the current crisis in the Middle East have begun to be clearly reflected in the European economy and the lives of citizens and companies in various countries of the Union, stressing that Brussels is moving on more than one level to deal with the sharp rise in energy prices, supply disruptions, and growing geopolitical risks.
This came after an extraordinary meeting held by the European Commission in Brussels, devoted to discussing the economic, security and energy repercussions of the current crisis on the European Union, at a time when fears are increasing about the continuation of tension in the region and the expansion of its effects on European markets.
Von der Leyen said that what is happening in the Middle East is no longer a crisis far away from Europe, but rather has become “something that directly affects Europeans,” noting that its impact appears in fuel prices, heating bills, the cost of basic goods, and in the mounting pressures on supply chains and economic expectations.
She added that the European Union has paid a heavy price over the past weeks as a result of the significant increase in the cost of importing fossil fuels, as the import bill rose by approximately 22 billion euros in just 44 days, without any corresponding increase in supplies.
Von der Leyen explained that the Commission will present next week, during the upcoming informal European Council in Cyprus, a package of practical proposals to deal with the current situation, provided that this package includes greater coordination between member states in the field of energy, targeted support for families and the most vulnerable sectors, and an acceleration of the transition towards a more independent European energy system.
Regarding immediate measures, von der Leyen stressed that the top priority is to strengthen coordination between member states regarding filling gas reserves and filling oil reserves, in a way that prevents European markets from turning into an arena for competition between national governments, stressing the need to ensure that emergency measures that some countries may take do not weaken the single market or create distortions in competition within the Union.
She explained that the Commission is working with member states to temporarily review government aid rules, giving governments a wider margin to support low-income families and sectors most affected by rising energy prices.
In terms of reducing energy demand, the President of the European Commission called for accelerating consumption rationalization programs, renovating buildings, modernizing industrial equipment, and increasing efficiency in consumption-intensive sectors.
Von der Leyen noted that more than 70 percent of electricity production in the European Union currently comes from renewable sources and nuclear energy, but she stressed that this is not enough unless the necessary infrastructure is strengthened to integrate these capabilities into the European energy system.
Von der Leyen announced that the Commission will present a new electrification strategy before the summer, which includes more ambitious goals to raise the share of electricity in industry, heating and transportation.
She said that the electrification of the European economy would increase its independence, reduce its dependence on foreign imports, and give households and companies greater stability in prices and costs.
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