«There was a strong will» to reach an agreement to reduce energy prices, European Commission President Ursula von der Leyen said today after the first day of the Summit, noting that on the one hand, «different Member States have different priorities», but on the other hand, important steps have been taken.
Asked why it took so many hours to reach an agreement and whether Member States could be accused of emphasising their own interests at a time when the EU is facing an energy crisis, Ms.von der Leyen replied that there were «very intense but constructive discussions and there was a strong will - we felt it in the European Council - to reach a common conclusion».
As for what the 27 agreed, he stressed that «the common market is a big step forward, it is the rules for sharing gas, the solidarity agreements and the rules to be followed in case of a serious disruption. It is the issue of excessive prices and how to limit them. There are two different models on the table on which we will work. One at the TTF level, the other one is on gas used for electricity generation.».
At the same time, it is «top of the agenda» the «big issue of investing in SMEs and European industry across Europe, to prepare them for the future, to help them overcome the difficult period of high energy prices, to enable them to move forward and modernise», the Commission President added.
«A strong sign of a united approach»
European Council President Charles Michel said that «this is an extremely serious issue, a difficult issue, a complex issue. We are all clear, what we have decided is the very strong framework that will play a fundamental role in order to achieve the objective we are determined to achieve.».
«We knew it would be a difficult European Council. The fact that we managed to get an agreement in just a few hours is in my opinion a very strong sign of a united approach and determination to act together in a European way,» he added.
European Council conclusions on energy
Faced with the fact that energy is being weaponised by Russia, the European Union will remain united to protect its citizens and businesses and take the necessary measures urgently, say the European Council conclusions on energy released in the early hours of this morning.
The European Council agreed that, in the light of the ongoing crisis, efforts to reduce demand, provide guarantees for security of supply, avoid rationing and reduce energy prices for households and businesses across the Union must be accelerated and intensified, adding that the integrity of the single market must be safeguarded.
The European Council also underlines that the European Council invites the Council and the Commission to urgently present concrete decisions on the following measures, as well as on the Commission's proposals, having assessed their impact in particular on existing contracts, in such a way that long-term contracts are not affected, and taking into account the different energy mixes and national circumstances:
(a) voluntary joint supply of gas, in addition to binding demand aggregation for a quantity equivalent to 15% of storage infrastructure filling needs, in line with national needs, and accelerating negotiations with credible partners to seek mutually beneficial partnerships by exploiting the weight of the Union's collective market and making full use of the EU Energy Platform, which is also open to the Western Balkans and the three associated Eastern Partners;
(b) a new supplementary benchmark by early 2023 that more accurately reflects gas market conditions;
(c) a temporary dynamic price corridor for natural gas transactions for the immediate mitigation of «episodes» of excessive gas prices, taking into account the safeguards set out in Article 23(2)(a) and (b); 2 of the Draft Council Regulation proposed on 18 October 2022;
(d) an interim EU-wide framework for limiting the price of gas in electricity generation, with a cost-benefit analysis, without modifying the merit order, while preventing an increase in gas consumption, addressing the financing and distribution implications and its impact on flows across EU borders;
(e) improvements in the functioning of energy markets to increase market transparency, mitigate the liquidity crisis and eliminate factors that increase the volatility of gas prices, while ensuring the preservation of financial stability;
(f) rapid monitoring of the simplification of authorisation procedures in order to accelerate the development of renewable energy sources and grids, including emergency measures under Article 122 TFEU (i.e. the Treaty on the Functioning of the EU);
(g) energy solidarity measures in the event of a disruption of gas supply at national, regional or Union level, in the absence of bilateral solidarity agreements;
(h) increased efforts to save energy;
(i) mobilising relevant instruments at national and EU level. At the same time, protecting households and businesses, especially the most vulnerable in our societies, is an immediate priority. Maintaining the Union's global competitiveness is also important. All relevant tools at national and EU level should be mobilised to strengthen the resilience of our economies, while maintaining Europe's global competitiveness and preserving a level playing field and the integrity of the single market. The European Council is committed to close coordination of policy responses. It stresses the importance of close coordination and common solutions at the European level, where appropriate, and is committed to achieving our policy objectives in a unified way. The Council will continue to monitor economic developments closely and is committed to further strengthen our coordination in order to provide a decisive and flexible policy response.
The European Council reiterates the need to step up investment in energy efficiency, future-ready energy infrastructure, including interconnections, storage and innovative renewable energy technologies.
The European Council calls on the Commission to accelerate work on the structural reform of the electricity market, including the impact assessment, and calls for further progress towards a full Energy Union that serves the dual objective of European energy sovereignty and climate neutrality.
The European Council will continue to examine the issue, the conclusions conclude.
