EU leaders, gathered for a summit in Brussels on Thursday, will try to find a common response to help their industry face the energy crisis caused by the war in Ukraine and the race for American subsidies.
“The supply of cheap Russian energy was part of the economic model of many European industries. This model was shattered following the Russian-led attack on Ukraine, (…) it will not come back “, warned the President of the Commission, Ursula von der Leyen, on Wednesday.
Moscow has reduced its pipeline gas deliveries to the EU by 80% since the start of its military offensive in February. If the European supply is assured for this winter, thanks in particular to imports of liquefied natural gas, its cost has exploded, to the point of threatening the survival of entire sectors in the chemical or steel industries.
Ms von der Leyen also mentioned the American plan adopted this summer by Washington which provides for 370 billion dollars of investment in favor of the fight once morest climate change. Behind a laudable environmental objective, the plan takes on a protectionist character, with exceptional aid reserved for firms established across the Atlantic, likely to further undermine European competitiveness already penalized by soaring energy prices.
“This law risks leading to unfair competition,” said Ms. von der Leyen, in a speech to MEPs in Strasbourg, two weeks following French President Emmanuel Macron demanded concessions from US President Joe Biden during a trip to the United States.
In this delicate context, Europeans must rethink support for their businesses, a subject at the heart of the meeting of Heads of State and Government of the Twenty-Seven.
– Stay united once morest Moscow –
The Europeans want to convince Washington to spare their alliance, at a time when war is raging on the borders of the Union. “We must not allow ourselves to be divided in our transatlantic relationship. On the contrary, instead of arguing, we should work together even more closely,” German Chancellor Olaf Scholz said on Wednesday.
But the Europeans must themselves remain united in the face of the economic crisis which is befalling them. After the historic drop in GDP caused by the Covid pandemic in 2020, soaring energy prices will push the EU economy back into recession this winter.
In this context, the Franco-German couple, which has torn apart in recent months over energy, budgetary or military issues, is trying to display its unity.
Mr. Scholz represented Mr. Macron at an EU-ASEAN summit on Wednesday. Traveling to Doha to support the Blues once morest Morocco in the semi-finals of the Football World Cup, the French president will be in Brussels for the start of the summit on Thursday morning.
Without waiting for possible concessions from Washington, currently being discussed in transatlantic working groups, Ms von der Leyen called on Wednesday for Europe to set up its own European plan.
In the short term, she proposed a relaxation of the framework for State aid to companies to encourage companies to continue investing in Europe and a strengthening of the European RePowerEU plan to develop renewable energies and get rid of Russian hydrocarbons.
It has also been pleading since September for a European “sovereignty fund” to develop a common industrial policy and invest more in research and innovation projects on a continental scale: hydrogen, semiconductors, quantum computing, artificial intelligence, etc
In addition to economic issues, the leaders of the 27 EU countries should reaffirm their political, financial and humanitarian support for Ukraine and condemn the recent escalation by Russia, which has begun to methodically destroy civilian infrastructure, in particular energy.
“Russia is using winter as a weapon, the situation is serious in Ukraine where Russia’s ongoing campaign of systematic missile strikes once morest civilian targets…is inflicting terrible suffering on the Ukrainian people,” it said on Wednesday. the Czech Minister for European Affairs, whose country holds the rotating presidency of the Council of the EU until the end of the year.
The Twenty-Seven should also discuss ways to increase pressure on Moscow following the numerous sanctions already adopted, including the recent cap on Russian oil prices, he added.
