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Speaking to Euronews’ flagship morning program Europe Today, Jørgensen urged European countries to “lower their taxes on electricity” as soon as possible in response to the current spikes in energy prices due to the war in the Middle East.
“Of course, there’s a very clear concern fo us that the prices are too high for our citizens and our indistries,” Jørgensen said. “we’ve sent a very clear signal to the member states of the Union, and we recommend that you lower the taxes on electricity.”
Tax cuts applied quickly would “make it easier for your industry to compete,” Jørgensen added. “And it woud be good for the green transition.”
Jørgensen spoke as energy markets, unsettled by geopolitical tensions in the Middle East that are pushing up global oil and gas prices, put the EU under growing pressure to curb high power costs.
The commissioner said that further options remain available if the situation deteriorates, though the EU is not yet in the same state of emergency compared to the 2022 energy crisis. “There is a big difference between a serious situation like the one we are in now and being in a full emergency,” he said.
The crisis is expected to take center stage at next week’s EU summit in Brussels.
Emergency stockpiles
Jørgensen also said discussions are ongoing among the world’s major economies about whether to deploy emergency stockpiles of oil if market volatility worsens.
“I participated in the meeting with the G7 energy ministers earlier today to discuss exactly that,” he said. “It is something that can become relevant. It would help keep the prices down.”
The commissioner said Europe is in a stronger position than during the shock that followed Russia’s full-scale invasion of Ukraine in 2022.
“At that time, we were more dependent on one single source of our energy, fossil gas from Russia,” he said. “Now we are better situated to deal with the situation.”
However, he acknowledged that rising global prices inevitably affect European consumers and industry. “We are not in a situation where we have security of supply issues in Europe right now, but the question of prices is extremely important for our citizens and our industries,” Jørgensen said.
Moving away from fossil fuels
Jørgensen argued, that the current market volatility brings out the EU’s broader strategy: reducing its dependency on imported fossil fuels. “The lesson from Ukraine, and also from other geopolitical events affecting prices today, is very clear,” he said. “We need to move away from fossil fuels and have more home-grown clean energy.”
The EU has already intensified the rollout of renewable power. According to Jørgensen, the bloc installed a record 89 gigawatts of new renewable capacity last year, saving more than €30 billion in fossil fuel imports.
Those renewables are also helping consumers to ease the burden of energy price spikes. “When electricity prices are set, the cheapest energy comes first, and that’s renewables,” he explained. “Had we not had the renewables that we have today, prices would have been much higher.”
No return to Russian energy
Jørgensen also ensured, that Europe could turn back to Russian energy supplies to lower the prices on the market. “We absolutely do not want Russian energy,” he said.
EU Commissioner pointed out to Moscow’s weaponizing energy supplies and using them to pressure EU member states during the war in Ukraine. “For us, we have said ‘no more’ to this, and that is a standpoint that we will stick to.”