Brussels, Belgium – European Commission President Ursula von der Leyen warned that the repercussions of the crisis in the Middle East are beginning to weigh heavily on the European economy. She also stressed the need for urgent action to address its escalating impact.
direct impact on the economy
Von der Leyen explained that the crisis is no longer far removed from Europe, but is now directly impacting the lives of citizens and businesses. This is due to rising fuel prices and the cost of living. In addition, there is increasing pressure on supply chains.
The President of the European Commission revealed that the EU incurred an additional €22 billion in fuel import costs in just 44 days. Despite this, supply levels have not improved. This reflects the extent of the pressure on the economy.
Urgent European moves
Von der Leyen indicated that the European Commission will present a package of measures at the upcoming European Council meeting. These measures include strengthening coordination among member states in the energy sector. They also involve providing direct support to the most affected households and sectors.
The President of the European Commission emphasized that the current priority is coordinating efforts to replenish gas and oil reserves. This aims to prevent competition among European countries. Such competition could negatively impact the single market.
She also noted that work is underway to temporarily review state aid rules. The goal is to give countries greater flexibility in supporting affected groups.
Accelerating the transition to clean energy
Von der Leyen called for accelerating energy efficiency programs, modernizing infrastructure, and increasing reliance on renewable energy sources. She also noted that more than 70% of the EU’s electricity production now comes from low-emission sources.
The European Commission President announced the development of a new European electrification strategy, to be launched before the summer. This strategy aims to reduce dependence on imports and promote price stability.
This European move comes amid growing concerns about the ongoing regional crisis and its far-reaching effects on global markets and major economies.
