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Europe Daily Bulletin No. 12855
EUROPEAN COUNCIL / Energy

Rising energy prices, EU Member State leaders in a deadlock

Divided both on the solutions to be implemented and on the analysis of the causes, the EU27 heads of state or government seem to be treading water on how to respond to the rise in energy prices. They failed to agree on conclusions, on Thursday 16 December, despite almost five hours of discussions on the subject in the European Council chamber in Brussels.

The reason for the blockage was the refusal by Poland and the Czech Republic to adopt conclusions without explicit references to the complementary delegated act on EU taxonomy and the need to combat speculation in the EU carbon market (Emissions Trading System - ETS).

We could not allow for the acceptance of empty conclusions at such a difficult time. The ETS has capsized and is not working, I have demanded its reform”, said Polish Prime Minister Mateusz Morawiecki after the summit.

The Spanish Prime Minister, Pedro Sánchez, said he regretted the lack of agreement and the intrusion of taxonomy into the debate: “We asked the Commission for more detailed reports on the functioning of the electricity market and price increases, but unrelated issues, such as taxonomy, got mixed up in the debate”.

He also considered it “unacceptable” for countries to question the ETS.

The differences around the table did not allow for an agreement on the text of the conclusions. The issue will be on the agenda of a forthcoming European Council”, said the President of the European Council, Charles Michel.

In October, the EU27 had already adopted a rather wait-and-see position by deciding to return to the issue of energy price increases in December (see EUROPE 12817/1).

Taxonomy, pro-gas and pro-nuclear States get impatient

In addition to Poland, Slovakia, Bulgaria and Romania are said to have supported the Czech Republic’s request to insert an explicit reference to the delegated act on the inclusion of nuclear energy and fossil gas in the EU taxonomy.

Following the EU27 meeting, the Slovak Prime Minister, Eduard Heger, said the Commission had given assurances that it would launch “the procedure related to the delegated act on taxonomy” by the end of the year.

Although no official date has been given, the presentation of the text could take place on Wednesday 22 December, the last meeting of the College of Commissioners.

Member States supporting the inclusion of nuclear and/or fossil gas in the taxonomy include France, Hungary, Poland, the Czech Republic, Romania, Slovakia, the Netherlands, Sweden, Finland, Bulgaria, Cyprus, Malta, Slovenia, and Croatia.

Austrian Chancellor Karl Nehammer said that his country, “united” with Germany and Luxembourg, had won a victory against nuclear power, “but not yet the war”. (Original version in French by Damien Genicot with the editorial staff)

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