Energy: Ursula von der Leyen promises “deep” reform of the electricity market

Europe 1 with AFP 6:08 p.m., September 14, 2022

Promising Europe's "unwavering solidarity" with Ukraine and firmness in dealing with Moscow, European Commission President Ursula von der Leyen assured on Wednesday that the EU would initiate "in-depth reform" of the energy market. to help citizens and businesses overcome soaring prices.

During her "state of the EU" speech, an exercise inspired by American politics, Ursula von der Leyen honored Ukrainian First Lady Olena Zelenska, who was given a standing ovation by MEPs in the hemicycle.

Sanctions against Russia 'not ready to be lifted'

"Dear Olena, it took immense courage to resist Putin's cruelty. You have found this courage," she said, dressed in the colors of Ukraine, announcing her departure for kyiv in stride to discuss "in detail" of continued European aid with President Volodymyr Zelensky.

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Making the term "solidarity" the key word of her speech, the European official, who spoke successively in English, French and German, promised that Europe's solidarity with Ukraine would remain "unwavering".

The time was "not for appeasement" with Russia and "the sanctions are not ready to be lifted", she underlined in a serious tone.

"A complete reform" of the electricity market

In her one-hour address, the former German minister gave prominence to the issue of soaring energy prices following Russia's invasion of Ukraine, as runaway inflation threatens the continent's economy.

The EU will undertake "a complete and in-depth reform" of its electricity market, promised Ursula von der Leyen.

"The current design of the electricity market no longer does justice to consumers, they should reap the benefits of low-cost renewable energy. It is therefore necessary to decouple electricity prices from the dominant influence of gas", said she announced, promising "this great reform" by "the end of the year".

Capping the revenues of renewable and nuclear-based electricity producers would raise "more than 140 billion euros" for EU states to redistribute to vulnerable households and businesses, she said. valued.

Pass of arms with Manon Aubry

A decision by member states on the "emergency measures" proposed by Brussels is expected at the end of September.

They also include a binding reduction in demand during peak hours.

"Reducing consumption is fundamental to the success of any measure aimed at tackling this energy crisis," said Commission Vice-President Frans Timmermans.

During the almost three-hour parliamentary debate that followed the speech by the President of the European Commission, French MEP Manon Aubry (La France insoumise) regretted a speech that "said little about social issues", brandishing bills of electricity of citizens.

"Send these invoices to Moscow, that's where the manager is," replied Ursula von der Leyen.

"Is that all you have to say to people who are struggling?" retorted the MEP.

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Creation of a public bank dedicated to hydrogen

It was the third time since taking office that the head of the European executive engaged in this exercise, during which the Commission - not elected but having the initiative of European laws - is supposed to be accountable for its action. .

Beyond the war in Ukraine and the question of electricity prices, Ursula von der Leyen announced the creation of a public bank dedicated to hydrogen capable of investing three billion euros.

It has pledged to build up “strategic reserves” to avoid supply disruptions in “critical” raw materials for the industry, in particular rare earths and lithium, the global supply of which is controlled by China.

She also assured that the EU would double its firefighting capabilities next year by purchasing ten light amphibious planes and three additional helicopters.

Finally, the President of the Commission said she wanted to support the creation of a new European sovereignty fund and declared herself in favor of calling a European convention to modify the European treaties.

"Since we are seriously considering expanding our Union, we must also seriously consider reforming it," she said.