Citizens pay a heavy price for European geopolitical failure

Under pressure from the Member States, the European Commission is today coming up with a plan to gild the bitter pill of rising energy prices. It is essentially a do-it-yourself guide with advice and options for the Member States. The European Council will also consider the matter next week. MEP Johan van Overtveldt is sceptical. “The fact that Europe has become a geopolitical loser leads to ad hoc solutions and flashpoint politics. Belgium is sick in the same bed. We hear almost nothing about longer-term structural solutions.”

Achievable and affordable

For years, the N-VA has been stressing the importance of achievable and affordable climate and energy objectives, with attention paid to a level playing field, the Competitiveness The extent to which companies in one country can compete with similar companies in another country. A law came into force in Belgium in 1996 to monitor competitiveness. This stipulates that Belgian salaries may not evolve faster than the average of those in the three neighbouring countries. The Central Economic Council (CEC) performs an annual measurement to see if the objectives have been obtained. competitiveness of companies and public support. “Our mantra of ‘achievable and affordable’ was often laughed off. We were accused of a lack of ambition. However, now that unpredictable, rising energy prices are hitting many citizens hard in their wallets, the scorn is giving way to mild panic, followed by improvisation. For us, real ambition consists mainly in thoroughly investigating the practical and financial feasibility of the necessary climate and energy transition,” Johan Van Overtveldt says.

Rising prices

The high energy price is influenced, among other things, by supply and demand problems in the gas market. For gas, the EU is almost entirely dependent on imports, including from Russia. “Putin may well be promising that more gas will come to Europe; the question is whether this will become a reality. After all, the obligations that Russia has entered into with China may put a spanner in the works. There is also a suspicion of market manipulation by Gazprom. I have asked the Commission, together with some colleagues, to investigate this thoroughly. Moreover, there is a real possibility that a similar situation will repeat itself in the future. Finally, the rising CO2 price (already EUR 60 per tonne) is also making gas more attractive as a substitute for coal and oil, with the result that scarcity is pushing the price up further. The danger of rising prices has therefore not yet been immediately eliminated,” Johan Van Overtveldt says.

Structural solutions needed

Can the EU enter into long-term contracts with energy suppliers? That is uncertain. Moreover, these are not the most stable regimes. The key challenge is therefore to guarantee the security of supply and geostrategic autonomy. “Nuclear energy can play a crucial role in this. France announced that it would invest EUR 1 billion in nuclear energy. That same France is leading a group of now 10 Member States that are explicitly asking the Commission to recognise nuclear energy as a sustainable investment.” Next, the EU must better quantify the affordability of the plans. Today we see that the middle class and all those who work, save and do business are paying the price without compensation. Finally, we must invest heavily in innovation so that affordable and low-carbon energy becomes the norm.