The European Union is taking action to combat high energy costs with a new package of measures aimed at supporting families and businesses. And it launches a plan, called “Accelerate Eu”, which provides vouchers, state aid and targeted economic interventions with the aim of mitigating the impact of price increases linked to international tensions on the energy market.
This is a complex strategy, which combines immediate support for the most exposed sectors and structural measures to reduce energy dependence and stabilize prices. Such as, for example, greater coordination among the 27 on oil and gas reserves and cutting excise duties on electricity for vulnerable families.
What are the measures of the European energy plan
Brussels’ decision intends to respond in advance to forecasts that Member States will be hit harder in the coming months by the energy crisis caused by the conflict in the Middle East. In fact, the most worrying repercussions of the cut in traffic and supplies from the Strait of Hormuz appear to be those in the medium to long term. For this reason, the fundamental aim of the EU Commission is that electricity is taxed less than fossil fuels.
The heart of the plan is therefore a set of tools coordinated at community level to address the increase in gas and oil costs. With a dual objective: on the one hand to offer immediate relief, on the other to intervene on the structural causes of the energy crisis. In summary, the main levers identified by the EU executive are:
- new state aid for the most affected sectors;
- energy vouchers for vulnerable families;
- targeted energy tax cuts;
- greater coordination on gas and oil supplies.
Energy vouchers and bonuses, direct aid to families
One of the most concrete measures concerns direct support for citizens. Starting with energy vouchers for low-income families, strengthened social tariffs and the reduction of excise duties on electricity for the most fragile households.
These tools intend to compensate for the increase in bills, which in recent months has particularly affected the most vulnerable groups and which foreshadows decidedly worse periods in the immediate future. Alongside vouchers, Brussels also proposes indirect interventions, such as cheaper public transport and incentives for sustainable mobility, to reduce taxpayers’ overall energy expenditure.
State aid to support energy-intensive businesses
The Brussels plan also dedicates ample space to businesses, especially those most exposed to energy price increases. The Commission proposes a new state aid framework that allows the 27 to cover up to 50% of additional energy costs, support sectors such as transport and agriculture and intervene with greater flexibility than the ordinary rules.
This is a key measure to avoid production slowdowns and loss of competitiveness, especially in highly energy-intensive sectors. In a historical period in which, among other things, the industrial reconversion of European countries is called upon to make greater efforts to overcome the fractures with Russia and Iran and to achieve the rearmament and self-sufficiency targets catalyzed by the United States.
Tax cuts and incentives, how energy taxation is changing
Another pillar of the “Accelerate Eu” plan concerns taxes and duties. With this in mind, Brussels has announced a proposal to reduce the tax burden on energy, favor lower taxation on electricity compared to fossil fuels and to introduce incentives for the use of efficient and renewable technologies.
In parallel, tools such as social leasing and incentives for the purchase of photovoltaic panels, heat pumps and energy storage systems are promoted. The aim is to accelerate the energy transition by reducing dependence on gas and oil.
Campaign to reduce energy consumption
In terms of demand reduction, the EU Commission intends to present a catalog of measures and behaviors to save energy at the next informal meeting of European ministers organized in Cyprus on 13 May. In addition to improving the efficiency of the system, the initiative aims to replace fossil fuels with “green” energy produced on European territory. Even in the short term.
The program also includes campaigns to reduce the heating temperature by one degree and increase the cooling temperature by one degree in public buildings, as well as promoting temperatures below 50 degrees for domestic boilers.
Energy imports have so far cost 24 billion euros
One of the most incisive data describing the extent of the energy crisis linked to the new Gulf war concerns energy imports. Since the beginning of the conflict in the Middle East and the closure of the Strait of Hormuz, the European Union has spent over 24 billion euros to supply itself with fossil fuels.
The EU Commission warns of an excessively unstable situation and “possible effects on GDP growth and inflation”. In the written declarations of the community executive we read that these effects “will continue to be felt for several months and will go beyond the energy sector, with economic and social repercussions”.
