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Europe Daily Bulletin No. 13036
EUROPEAN PARLIAMENT PLENARY / Economy/energy

Ursula von der Leyen calls for “common European funding” to speed up reduction of EU’s dependence on Russian hydrocarbons

During a debate in the European Parliament in Strasbourg on Wednesday 5 October, the President of the European Commission, Ursula von der Leyen, spoke out in favour of “common European funding” to increase financing to accelerate the reduction of the European Union’s dependence on Russian hydrocarbons and the transition to a low-carbon economy.

Ms von der Leyen reacted to announcements by some governments to protect businesses and households affected by soaring energy prices, including Germany’s €200 billion aid package until 2024 (see EUROPE 13034/5). “Without a European solution, we risk fragmentation” of the Single Market, she said, stressing the importance of preserving a “level playing field”.

Highlighting that the ‘REPowerEU’ strategy will support investments in diversification of energy supply and energy efficiency in buildings, the Commission President proposed boosting this strategy with additional “common European funding”.

This statement echoes the op-ed by European Commissioners Thierry Breton and Paolo Gentiloni, in which they launched the idea of a European financial mechanism along the lines of the ‘SURE’ initiative to support national unemployment insurance schemes (see EUROPE 13035/31). In the Chamber, Ms von der Leyen did not specify the nature of the European funding she is calling for. When asked by EUROPE, Commission spokesman Eric Mamer did not want to say more, arguing that “the subject deserves discussion with the Heads of State or Government”, who are meeting on Friday 7 October in Prague (see other news). He also welcomed the agreement reached the previous day by the Ecofin Council on the financing modalities of the ‘REPowerEU’ chapters to be integrated in the national recovery plans (see EUROPE 13035/14).

In the presence of Ukrainian Prime Minister Denys Chmyal, MEPs almost unanimously condemned Russia’ strategy of escalation in its military invasion, with the annexation of four militarily occupied Ukrainian territories allegedly legitimised by sham referendums.

Critical infrastructure. Ms von der Leyen also detailed the avenues the Commission will work to bring down energy prices, including gas, in the EU (see other news).

She also announced a future action plan to better protect critical infrastructure in the EU, following the recent leaks on the Nord Stream I and II pipelines. This plan will include: - the application of the new specific EU rules (see EUROPE 12981/11); - resistance testing of gas, then digital and electrical infrastructures; - a greater role for the civil protection mechanism; - better use of satellite images; - enhanced cooperation with NATO and the United States.

EU High Representative for Foreign Affairs Josep Borrell spoke about the package of sanctions against Russia, including an EU cap on international oil prices, which Member State ambassadors approved on Wednesday (see other news). Welcoming the ground gained by the Ukrainian army, he urged Europeans to overcome their sense of “fatigue” in providing economic and military support to Ukraine, mentioning that Russian President Vladimir Putin was counting on “General Winter” to undermine the will of Europeans.

European Parliament resolution. MEPs will adopt a resolution on Thursday condemning Putin’s recent decisions to annex four militarily occupied Ukrainian territories and to mobilise 300,000 reservists to increase the war effort, as well as his veiled threats to use nuclear weapons.

According to a joint draft resolution by the EPP, S&D, Renew Europe, Greens/EFA and ECR groups, of which EUROPE has a copy, the Parliament advocates additional sanctions, including cutting Gazprombank off from the SWIFT system as well as halting exports of technology and strategic products to Russia and imports of Russian metals (titanium, aluminium, etc.) and diamonds. It calls on Member States to “massively” increase their military assistance to enable Ukraine to regain control over its entire territory, including Crimea.

The chairman of the EPP group, Manfred Weber (German), supported sending “tanks” to Ukraine.

He tried to distance himself from accusations of Christian Democrat collusion with the far right, notably in Italy, castigating the French Rassemblement National for borrowing money from a Russian bank and the Slovak SMER party, affiliated to the Party of European Socialists, which is highly critical of sanctions against Russia. “The EPP will never agree to rewrite history”, he said. 

On behalf of the S&D group, Spanish MEP Iratxe García Pérez urged him to build alliances “with those who defend European values”. The President of the ID group, the Italian Marco Zanni, responded by refusing any “moral lessons” from those who wink at “the worst far-left regimes” in the world and who welcome into their ranks “the biggest lobbyist for Russia”, the former German Social Democrat Chancellor Gerhard Schröder. According to him, the future Italian government of Giorgia Meloni will play a constructive role in building Europe and supporting Ukraine.

For Petras Auštrevičius (Renew Europe, Lithuanian), Ukraine needs security guarantees through NATO membership. Anna Fotyga (ECR, Polish) said that Russian “state terrorism” should not be allowed in Europe.

Sergey Lagodinsky (Greens/EFA, German) called for the “ Europeanisation” of efforts to mitigate the economic and social repercussions of the Russian invasion in the EU. His compatriot Martin Schirdewan (The Left) urged Europeans to leave room for diplomacy to find a political solution to the war, while “there is only talk of sanctions and more arms deliveries” to Ukraine.

Finally, Jérôme Rivière (NI, French) said that the effectiveness of EU sanctions against Russia had not been proven.

See the European Parliament’s joint draft resolution: https://aeur.eu/f/3f0 (Original version in French by Mathieu Bion)

Contents

PRAGUE SUMMIT
Russian invasion of Ukraine
EUROPEAN PARLIAMENT PLENARY
INSTITUTIONAL
EXTERNAL ACTION
SECTORAL POLICIES
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
ECONOMY - FINANCE - BUSINESS
COUNCIL OF EUROPE
NEWS BRIEFS