The EU must now curb exploding energy prices. Prolonged delay is unacceptable. “The credibility of the European Union is at stake,” said EU President Charles Michel at the start of the new European political season.
The fire with which he advocates price measures for the energy market almost makes one forget that Michel is a liberal. “How can we explain to the people of Europe that they have to pay the full price for gas and electricity and energy companies make super profits?” Michel asks in an interview with seven European newspapers, including de Volkskrant. ‘That is inexplicable’, he answers himself. “We must act now. We no longer have the luxury of waiting weeks, months again.’
Michel is critical of the European Commission. Since this spring, European government leaders have unanimously asked the Commission three times to come up with concrete, detailed proposals that will curb the purchasing power-erosive price rise for energy. ‘An ideological debate about possible instruments does not help, we need precise proposals to help the citizen.’ Michel is still waiting for it. He finds it insufficient that Commission President von der Leyen launched a number of ideas on Friday – maximum price for Russian pipeline gas, skimming profits from energy producers.
‘When the corona pandemic broke out two years ago, we were able to act quickly and together: with the purchase of vaccines, with the recovery fund, with keeping the borders open for freight traffic. That was extremely helpful and necessary. That urgency is now required again: energy prices are a very big problem for citizens and businesses.’
Is the Commission late with proposals?
‘Before the price crisis, yes. The Commission played an important role in updating gas supplies for this winter. A good case. The Commission also made good proposals to reduce gas consumption by 15%. I think we should do something similar for electricity use. But we are still waiting for the price measures. What has to happen? First, price caps are needed. This debate is not new, but the Commission does not come up with detailed proposals. Same story about the electricity market. Under normal circumstances, we all understand that gas determines the price of electricity. But these are not normal times! The leaders ask for proposals! We can no longer avoid the debate. That is not to say that a decision is easy, especially now that economic growth is slowing. But I’m sure we’ll get out. We want to buy that. There will be an extra meeting of energy ministers next week, and an extra EU summit in early October. We don’t have a day to lose.’
Spain, Italy, Greece and Belgium have been asking for price ceilings since March, while the Netherlands, Germany and Austria have been obstructive. What can the Commission do in the face of such a division?
‘Leaders disagreed on the solution, but they did agree on the request to the Commission to put detailed plans on the table. Only then can a decision be made. Not one-two-three and Kees is done, it will be difficult. But I do not want to repeat the debate from March, May and June at the EU summit in October. We can’t afford that.’
Another thorny issue: Italy. The country is heading for a new unstable and less European-minded government, averse to reforms; the national debt is sky high; recession threatens. Will we have a new euro crisis?
‘All the ingredients for a bitter cocktail in Europe are there: high prices, inflation, faltering supply lines, energy shortages. The situation is extremely difficult and tough. But I am not going to prejudge what may happen in one specific Member State. We know the strengths and weaknesses of the eurozone. We know the lesson of the corona pandemic: working together pays off. We have an emergency fund. I can assure you that the EU is prepared for any crisis. Also applies here: We want to buy that.’
Are you concerned that a recession will erode public support for Ukraine and sanctions against Russia?
‘There is certainly a risk. That is why it is so important that politicians explain why Russia needs to be dealt with harshly. Because it has invaded Ukraine, is violently trying to change its borders, a blatant violation of international treaties, an attack on our democratic values. At the same time, we must not forget our citizens and businesses – for whom the extreme energy prices caused by the war are catastrophic. According to the Brussels think tank Bruegel, the EU countries have already deployed 280 billion euros to offset the costs of the energy crisis.’
Are you still giving this answer as Hungarian Prime Minister Orbán is laughing this winter at his gas supplies from Moscow, while the rest of Europe is left out in the cold?
‘Secure. We simply cannot tolerate a country like Russia deciding, as on the first day of the war, to fire 1,600 rockets at Ukraine, a sovereign state. If we let that pass, no country will be safe from such beastliness. And yes, Hungary makes gas deals with Moscow – but other member states are also busy with bilateral gas contracts in the world. The joint purchasing of energy by the member states has not yet got off the ground.’
The US supplies more weapons to Ukraine than the EU. Isn’t that embarrassing?
Immediately after the Russian invasion of Ukraine, the EU – for the first time in its history – released billions of euros from the EU budget for arms supplies to Kyiv. In addition, the Member States themselves provide arms and other aid to Ukraine, not always publicly. You would have to add all that up to make a good comparison with US military support. Furthermore, the EU countries are almost in agreement on new financial aid for Ukraine of 9 billion euros.’
At the beginning of October, EU leaders will meet all neighbors and candidate countries in Prague to start a new European partnership. Should the UK be invited?
“No doubt about that, in my opinion. Even if we have differences of opinion about the Northern Ireland protocol, the EU and the United Kingdom are friends and we will remain so, also in the G7, the G20 et cetera.’
And Turkey?
It’s no secret that this question is a sensitive one. But I’m sure we can work this out.”
But is Ankara invited? Turkey is a candidate country.
‘Personally, I think we should invite Turkey. But I do seek the support of all EU leaders.’