Von der Leyen doubles down in face of energy crisis criticism

BRUSSELS — The EU on Friday sought to reassure national capitals concerned over its handling of the energy crisis that started after Russia invaded Ukraine in 2022 and has ramped up as conflict spreads across the Middle East.

At an emergency meeting of commissioners on Friday as energy prices soar, Commission President Ursula von der Leyen’s top team sought to build support for their energy strategy, which includes replacing imported oil and gas with homegrown green energy. The issue has become a major headache for Brussels, as leaders face rising public anger over high bills and sluggish economic growth.

“Developments in the Middle East remind us once again of the risks of relying still too much on fossil fuels,” von der Leyen said in a statement following the session, attended by International Energy Agency chief Fatih Birol. Oil and gas prices have jumped sharply in the wake of U.S. and Israeli strikes on Iran.

“There is criticism and concerns coming from member states, but at the leaders’ retreat [last month in the Belgian countryside] they asked the Commission to come up with solutions on energy,” said one EU official with knowledge of the talks, granted anonymity to speak frankly, as were others quoted in this piece.

Described as an orientation debate, the meeting was a chance for commissioners to “exchange ideas on these topics and propose concrete actions,” said the EU official, “particularly in this case, as the president is expected by the member states to present on energy prices at the next EUCO [European Council]. They’re important to member states so it’s important to the Commission.”

According to an internal note drafted by EU competition chief Teresa Ribera, a Spanish socialist, and Energy Commissioner Dan Jørgensen, a Danish social democrat, “the recent escalation in the Middle East and the disruptions in the Strait of Hormuz have had an immediate effect on global energy prices and market volatility.”

Oil and gas prices have jumped sharply in the wake of U.S. and Israeli strikes on Iran. | Oscar Del Pozo/AFP via Getty Images

And yet, the Commission’s strategy remains unchanged despite strikes on Iran sparking supply concerns. The internal note, obtained by POLITICO, focuses on long-standing calls to boost green energy, but also acknowledges that may not be enough and hints at a “bridge solution” to slash bills until the benefits from the clean transition are felt.

A second Commission official confirmed that the meeting was called to focus on improving “organization in the wake of the high energy prices due to the conflict in the Middle East,” but that the response would focus on trying to get national governments to take advantage of powers already available under existing EU rules to slash bills.

A third official, who has worked directly on the proposals, said the Commission is confident it has “taken concrete actions” in the wake of Russia weaponizing energy supplies, and that it is in a good place to deal with current developments. “We have enhanced security of supply by diversifying our partners and reducing overdependencies on unreliable suppliers like Russia,” they said.

Hungarian Prime Minister Viktor Orbán has sought to capitalize on the new war in the Middle East just weeks before a critical national election that has become the toughest test yet of his 16-year hold on power. Trailing in the polls, Orbán claims war with Iran means the EU should reverse its plans to quit Russian oil and gas, and put pressure on Ukraine to repair a pipeline carrying Moscow’s crude oil.

A string of national and regional elections have seen populist parties surge after railing against green rules. New Czech Prime Minister Andrej Babiš and his coalition government have vowed to dismantle the framework, adding his voice to those around the table of leaders challenging von der Leyen’s policies.

Meanwhile, Sweden earlier this week wrote to von der Leyen, urging her to change course on plans to join up national electricity markets, warning this could “lead to a more expensive system for EU citizens and companies.”