Czech Business Today

At May plenary, the European Economic and Social Committee thrown its support behind the Commission’s “REPowerEU” Communication, stressing that energy security must be accompanied by urgent measures to protect vulnerable users, accelerate decarbonisation, diversify energy sources and reduce demand on Russian gas. Energy independence is key for Europe’s future and so the EU needs to secure its energy supplies as soon as possible, breaking free of Russian gas.

This is the main takeaway of the EESC opinion on “REPowerEU: Joint European Action for more affordable, secure and sustainable energy”. The current geopolitical situation caused by the Russian invasion of Ukraine has further worsened the unprecedented surge in energy prices the EU has faced in the past few months. It is therefore extremely important to take immediate steps to mitigate the impact of high prices for European households, farmers, businesses and industry. In order to offset the price pressures consumers are experiencing at the moment, the EESC pointed out that national fiscal or regulatory interventions will be needed to avoid sudden price increases, secure affordable prices for end consumers and prevent energy poverty.

However, it warned that EU and national policymakers should ensure that any measures do not hamper the functioning of the internal energy market, do not jeopardise decarbonisation and energy efficiency efforts and do not cause investment uncertainties in the energy industry. Moreover, they should be decided in close consultation with the relevant stakeholders.

The EESC also stressed that “windfall taxes” must be handled with care so as not to discourage investments by energy companies in low-carbon solutions precisely at a time when Europe is being asked to press ahead with them to reach Green Deal goals and when it is confronted with extra costs for weaning itself off Russian gas. The new reality requires a drastic acceleration of the transition to clean energy and the increasing of the EU’s energy independence and autonomy. In order to accommodate the switch to the green transition towards Green Deal goals and also to diversified gas sources, while at the same time ensuring the flow of energy among Member States via transmission interconnections, infrastructure needs to be enhanced.

Security of energy supplies also means a versatile energy production palette, making the most not only of wind and solar power, but also of a wide variety of other low-carbon energy sources that fit economically and ecologically within an energy system. Until the EU energy diversification has been completed, the EESC is in favour of using, from a practical point of view, stable and affordable energy sources that meet the low-carbon requirements, and urges the Commission to put forward a detailed action plan aimed at enhancing biogas production.

The situation is very serious, we have to activate all energy sources at our disposal and ensure a great level of solidarity and trust among Member States in order to secure energy supply for all Europeans. Europe is being put to the test again, as it was during the first wave of the COVID-19 pandemic, and solidarity and cooperation among Member States is key to ensure the smooth running of our economy.

Alena Mastantuono, EESC Member of Employers´ Group and rapporteur on REPowerEU Communication