Dear Readers,
Dear Entrepreneurs all over Europe,
We published our last newsletter three weeks ago, welcoming everybody back from holidays, especially the European Commission and the European Parliament, trying to make a wake-up call for a common European Action against rising energy prices – whateverittakes. We have sent this call also to all 750 Members of the European Parliament, and in several events and meetings with Commission representatives and MEPs since then, we have repeated this call verbally many times. Even one German MEP used this call in a panel discussion.
We had been answered more than one time that this last week would have brought a great answer, which meant that EU Commission President Ursula von der Leyen would have announced some severe measures to do everything to reduce energy prices as soon as possible during her State of the Union Speech (the so-called SOTEU) on Wednesday 14 September in Strasbourg. For what I heard – and I listened attentively – and even more, for what I read and listened to after this speech, it seems that no strong signal came from this speech.
Now, it is possible that the media reaction in European media is not honest enough and distracted, as they tend to comment 95% only on national politics and very little on European politics, if not somehow linked to national affairs. But I definitely don’t have the impression that a significant part of the European public now feels that the European Union will finally do an important – and most of all coordinated – step forward to reduce energy prices. On the contrary: some political parties are disappointed because some days before the EU Energy Ministers decided not to cap the gas prices tout court, on Thursday 15th Sept, 70.000 people rallied in Prague to protest against the EU sanctions and high energy prices. The concerns are rising throughout the continent; particularly, many companies are more and more afraid their business will not survive the winter.
But to be honest, although this speech was not the big bang we were hoping for, some proposals are definitely on the table, especially one: The EU Commission proposes to the member states to decouple prices for energy produced with gas from prices for energy produced with the sun, wind, water, nuclear, lignite, etc. and to cap the price of the latter at 180€/MWh. This is roughly 30-40% less than the energy produced currently, with all kinds of energy costs on the market because they are bound to the gas price. That would definitely change the game with energy market prices.
All other proposals are not very promising or valuable, minimum saving, windfall tax, European solidarity, and are more good hope than substance. Maybe mixing this single good proposal with many others that raise even more doubts was not a clever move by Ms. von der Leyen.
At least one good news for SMEs: The EU Commission considers it legitimate and compatible with EU treaties (“within the current State-aid rules”) if national governments decide to help SMEs financially to face the high costs. Hopefully, this brings immediate relief in some member states, preferably regarding tax reliefs for SMEs.
But that is unfortunately not the big coordinated and common answer by the EU. That is the minimum, and national taxpayers pay it. Looking forward to more to come…
Stefan Moritz
Secretary General
European Entrepreneurs CEA-PME
