801. The European Union’s uneasy journey through the energy crisis
- Author:
- Alekos Kritikos
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Hellenic Foundation for European and Foreign Policy (ELIAMEP)
- Abstract:
- The European Union revealed rapid reflexes when it came to imposing sanctions on Russia and supporting Ukraine, but has been extremely slow when it comes to taking measures to relieve its own citizens and businesses. At three fruitless summits in the first two months of the crisis, numerous member states’ repeated requests for a joint fiscal response mirroring that adopted vis-à-vis the pandemic were not even informally tabled. In May, the Commission presented the REPowerEU programme, which aims to transition to clean energy and end the EU’s dependence on Russian fossil fuels. The two European Councils in May and June agreed on new sanctions against Russia, further assistance for Ukraine, and joint EU supplies of defence equipment. However, no decision was made to impose a cap on the price of natural gas and the issue of a joint fiscal response to the crisis was not even discussed. Despite repeated requests, the Commission continued to not submit proposals to this effect. But pressure was mounting for decisions to be made. Fifteen countries signed a joint letter in September 2022 calling for a cap on gas prices. In a joint article, Commissioners Thierry Breton and Paolo Gentiloni have also called for a joint fiscal response. The two Councils of Energy ministers in September 2022 resolved on a series of measures, but these are national responses rather than a joint European initiative. The price cap was absent once again from the decisions made. The informal Prague summit did not reach any conclusions either, though it did table all the outstanding issues in question. Europe’s successes in dealing with the pandemic came with “collateral damages”, institutional and otherwise, and the bloc has continued to sustain further collateral damages during the current energy crisis.
- Topic:
- European Union, Crisis Management, Fossil Fuels, Energy Crisis, and Russia-Ukraine War
- Political Geography:
- Europe