But two circumstances interfered in this agenda – the war in Iran, which caused a crisis in the European energy market, and the categorical position of Hungarian Prime Minister Viktor Orban on Ukraine, writes Deutsche Welle.
President of the Council of the European Union António Costa said at a press conference after the summit that because of the crisis in the Middle East it is necessary to find a solution to the problem of rising fossil fuel prices. Emergency measures will be taken to protect citizens and companies, while the European Commission will prepare targeted and temporary measures taking into account different conditions in member states.
“Improving our competitiveness is vital,” Costa emphasized, explaining that this is necessary to revitalize economic growth, provide quality employment, preserve purchasing power and increase Europe’s strategic autonomy in the current geopolitical environment.
Costa noted that EU leaders approved a plan with a comprehensive calendar of reforms to strengthen the single market and increase the competitiveness of the Union. The measures are expected to be implemented by the end of 2027 and remove the ten most critical barriers in the EU market.
What the EU reform plan includes
First of all, it is planned to increase labor mobility in Europe through mutual recognition of professional qualifications. By the end of the year, a single regulatory framework proposed by the European Commission will be approved, which will allow all companies to operate in a single market, reports Turkish Anadolu news agency reported from the summit.
Koşta emphasized the importance of taking the necessary decisions to develop a single capital market and unify savings and investments, with a focus on securities, complementary pension systems and integration with market surveillance.
“By the end of the year, we should also implement steps to develop the digital euro,” he added, pointing to the continuation of the legislative simplification program.
“High energy prices are one of the biggest challenges for the EU’s competitiveness,” said Costa.
He emphasized that the current crisis in the Middle East and its impact on global energy supplies show the importance of energy autonomy and the use of own resources.
“Reducing carbon emissions and using local energy sources is the right approach to reduce dangerous dependency and lower energy costs in the long term,” said Costa.
He said action must be taken on rising fossil fuel prices due to the crisis in the Middle East. “We need to take emergency measures to protect our citizens and companies. In this direction, the European Commission will present targeted and temporary measures, taking into account the specificities of the member states and the risks for energy-intensive industries.”
Interim measures worth €30 billion
European Commission President Ursula von der Leyen said at a press conference that the most direct impact of the war in the Middle East in Europe is felt in the energy sector.
She said the EU was securing energy supplies, but Europe was feeling the effects of global price rises:
“As long as the conflict continues, energy prices will fluctuate. Today, gas prices have risen by 30% following attacks on gas infrastructure in Qatar. Such attacks and irresponsible actions against infrastructure and civilian merchant ships increase costs and pose risks to future supplies,” Anadolu Agency quoted the European Commission head as saying.
Von der Leyen emphasized that EU energy price measures should be temporary, targeted and adapted to the situation:
“Where possible we will provide emergency support, where necessary we will make structural changes and influence the four key components that shape energy prices.”
She proposed creating €30 billion in investment support through an emissions trading system to finance decarbonization projects.
Von der Leyen also noted that in some cases electricity is taxed 15 times higher than gas.
“This should not be the case. We will propose to reduce taxes on electricity and make the taxation of electricity lower than that of fossil fuels,” she added.
On the situation in the Middle East, she emphasized the need to reduce tensions and maximize restraint to protect civilians and infrastructure, expressing solidarity with partners in the Gulf and wider region.
Von der Leyen also said that the EU has announced more than 450 million euros in humanitarian aid to the region.
The crisis and its impact on migration was also discussed at the summit, she said.
“So far we have not seen migration flows towards Europe, but we must be prepared. We will not allow a repetition of the events of 2015,” she added.
