Faced with the surge in fossil energy prices, the EU unveils a two-pronged plan. On Wednesday, the European Commission disclosed emergency measures (direct aid, energy vouchers, tax cuts) paired with an acceleration of the green transition. The objective: to protect vulnerable households while structurally reducing the continent’s dependence on imported hydrocarbons.
The European Commission unveiled on Wednesday a series of measures aimed at protecting households and businesses from the rising prices of fossil energies, but also at accelerating the transition toward clean energy produced in Europe. These measures aim to provide immediate support, particularly to the most vulnerable actors, while structurally reducing the EU’s reliance on fossil fuels.
The European Executive notes that, since the intensification of the conflict in the Middle East, the EU has spent 24 billion euros more on energy imports, without obtaining any additional energy.
“The choices we make today will shape our ability to face current challenges and tomorrow’s crises,” said Ursula von der Leyen, the President of the European Commission, emphasizing the need to accelerate the shift to locally produced clean energies in order to strengthen energy independence and security.
The announced package combines short-term measures and structural actions. It notably provides for stronger coordination among member states, particularly for gas stockpiling, the management of oil reserves, and national emergency measures.
The Commission also proposes the creation of an hydrocarbons observatory to monitor production, imports, exports, and stock levels within the EU, to anticipate potential shortages and facilitate targeted responses.
Among the immediate measures are temporary and targeted schemes to cushion price spikes, such as direct income support, energy vouchers, or a reduction of electricity taxes for vulnerable households. A temporary State aid framework should also offer greater flexibility to governments to support the most exposed sectors.
In the longer term, the European Executive intends to accelerate the electrification of the economy, with the presentation of a dedicated action plan expected by summer, notably targeting the industrial, transport, and building sectors. Brussels also plans to strengthen electrical grids, accelerate the deployment of renewable energies, including offshore wind and hydropower, as well as reform the energy taxation to favor electricity over fossil fuels.
