As promised at the end of October (see EUROPE 12817/1), the EU27 leaders will resume discussions on Thursday 16 December on the soaring energy prices that are eroding the purchasing power of households. However, due to the lack of consensus, they will not take a radical decision on the EU’s response to this phenomenon, saying they are ready to address the issue whenever the situation requires it.
Thus, the draft conclusions of the European Council submitted to the EU27 have changed little from the first draft (see EUROPE 12850/9). The European Commission will be invited to further analyse the functioning of the electricity markets and the ETS in light of the final reports on possible market manipulation to be presented by the European agencies ACER and ESMA.
Also in square brackets is the call for a rapid review of the proposal allowing Member States to make joint gas purchases contained in the gas package unveiled on Wednesday 15 December (see other news).
“I don’t expect any big decisions”, as the upcoming discussion is part of a process of regular meetings, a European diplomatic source said.
According to a second source, the discussion on whether to act will start in the “spring” of 2022. He noted that the draft conclusions are “relatively stable”, indicating that the issue is not yet fully developed.
This second source summarised Member States’ positions on energy price volatility as follows: - some countries (France, Spain, Greece) are calling for reform of the European electricity market or the possibility of joint purchasing; - others (Poland, Central European countries) blame the EU’s climate proposals (the ‘Fit for 55’ package), which allegedly contribute to the rise in fossil fuel prices; - another large group of countries (Germany, Benelux, Scandinavian countries) believes that the liberalised energy markets are working well, that action is needed at national level to support vulnerable groups, and that the EU should stick to its existing climate commitments.
Although not officially on the summit agenda, it is possible that EU leaders will again speak out on the EU’s taxonomy, as the European Commission has not yet proposed a delegated act on gas and nuclear energy, although it has pledged to do so by the end of 2021.
See the draft conclusions of the European Council dated 13 December: https://bit.ly/3pYPkUg (Original version in French by Mathieu Bion with the editorial staff)