Nicosia (EFE).- European Union leaders called on Friday for the deployment of more «specific» measures to alleviate the impact of the Middle East war and the closure of the Strait of Hormuz on energy prices. This is particularly urgent given the rebound in oil prices, which threatens to pose supply problems if the conflict is prolonged.
Specifically, they instructed their Economy and Finance Ministers to work on more concrete measures for short-term adoption, according to Nikos Christodoulides, the President of Cyprus and host of the summit.
The meeting took place as the price of oil remained above 100 dollars per barrel for the third consecutive day.
Just one day after the European Commission, led by Ursula von der Leyen, unveiled a set of suggestions that several leaders considered insufficient, the 27 heads of state and government gathered on the Mediterranean island.
This view was expressed, for example, by Spanish Prime Minister Pedro Sánchez, and the Prime Ministers of Italy, Belgium, and Poland: Giorgia Meloni, Bart De Wever, and Donald Tusk, respectively.
Calling for more ambition
«We have asked the (European) Commission for more ambition in the joint response from the EU,» said the Spanish leader. He also advocated for a tax on large energy companies, a relaxation of fiscal rules to allow investment in the green transition, and a one-year «extension» of the recovery fund.
Meloni, who the day before argued that Europe must be much braver in finding solutions to the energy crisis stemming from the Middle East war, reiterated on Friday that it takes the courage to prevent a crisis, not just to respond when it is already fully manifesting.
Belgium’s De Wever, joined Spain, Italy, Germany, Portugal, and Austria in pushing for a tax on the extraordinary profits energy companies are making from the crisis. He added that Brussels’ package of proposals includes many recommendations and good practices, but nothing concrete.
Poland’s Donald Tusk expressed a similar sentiment, acknowledging that it is a complicated issue but welcoming the fact that everyone understands that there is no opportunity for European competitiveness without tough, long-term decisions.
Latvia’s Evika Silina also stated that leaders debated how to «improve» Brussels’ suggestions given the uncertainty surrounding the duration of the Middle East conflict, which adds to Russia’s war in Ukraine.
Homework for ministers
The ball is now in the court of the EU Finance Ministers, who will meet on May 5 in Brussels and again two weeks later, on May 22 and 23, in the Cypriot capital.
The economic leaders of the 27 will have to find more specific measures to tackle the price increase. Some countries already indicated at the leaders’ summit that they favor agreeing on flexibilities in the deficit and debt rules to allow for investment in energy security issues.
This idea was brought to the meeting by Spanish Prime Minister Pedro Sánchez, echoing an initiative that Rome has championed since the start of the Middle East conflict.
The European Commission, however, has so far been reluctant to take such a step or to generally suspend the budget rules, arguing that the necessary conditions for a decision of that magnitude do not yet exist.
25 billion euros extra cost
In the press conference following the summit, Von der Leyen noted that the impact after 54 days of conflict is «tangible» and said the EU has spent over 25 billion euros extra on fossil fuel imports «without (obtaining) a single molecule of energy in addition.”
«Therefore, the mid-term strategy that we have been discussing in the last weeks and months is very clear: we need to reduce our overdependency on imported fossil fuels because these make us vulnerable to crises, and we need to boost our home-grown, affordable, clean energy sources,» she explained.
Next to her, European Council President António Costa described the war’s impact on hydrocarbon prices as serious and warned that it is affecting both economic growth and the daily lives of households and businesses. EFE
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