EU summit: EU promises 'temporary' and 'targeted' measures against rising energy prices
The European Union will take "temporary" and "targeted" measures to tackle the rise in energy prices resulting from the war in the Middle East, Commission president Ursula von der Leyen announced following the EU summit in Brussels.
The Commission plans, among other things, a further relaxation of state aid rules, which should enable member states to offset rising energy costs and limit the impact of rising fuel costs on electricity production.
Von der Leyen also pointed out taxes on electricity, which in some member states are much higher than those on gas. "This is unacceptable. We will propose lowering tax rates on electricity and ensuring that electricity is taxed less than fossil fuels," she said.
She also noted that "a clear majority" of leaders had expressed support for retaining the industrial CO2 emission allowance system (ETS1), which has already significantly reduced oil and gas imports into the EU over the past two decades.
However, the Commission will adjust the reference standards for free allowances "in the coming days" and increase the "firepower" of the Market Stability Reserve. By the summer, it aims to present a revision of the ETS, featuring a "more realistic trajectory" for limiting the total number of emission allowances as well as retaining free allowances after 2035.
Finally, Von der Leyen announced an "investment booster" of 30 billion euros. The instrument, financed by revenue from emission allowances, is intended to accelerate the transition to sustainable energy, particularly in the poorer member states.
Ursula Von der Leyen | © BELGA PHOTO JONAS ROOSENS
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