Context: EU prepares responses to rising energy prices following the impact of the war in Iran on markets
Ahead of the leaders’ meeting in Brussels, European officials warned that the war in the Middle East had pushed energy prices higher and affected the economy, while gas reserves had reached very low levels before the cold season. The European Commissioner for Energy said that supply problems are not expected in winter, but that oil and gas prices could remain very high, affecting consumers and industry.
At the same time, measures to reduce pressure on the market were discussed, including postponing certain rules on methane emissions associated with oil and gas imports. The proposal was presented as a temporary solution to limit costs, as member states and European institutions seek to manage the risks generated by regional tensions and competition for gas supplies.
At the same time, the idea of taxing energy companies’ windfall profits also resurfaced in European debates. The Commission argued that states can decide on such measures at national level and indicated that it can provide best-practice models, while discussions about a possible European response were announced at Council level, without a new mandatory tax having yet been adopted.
