EU Commission President Leyen gave the bad news! ‘The era of cheap energy is over’

EU Commission President Leyen gave the bad news The era

Ursula von der Leyen, President of the European Union (EU) Commission, spoke at the “Preparation for the EU Leaders’ Summit” session within the framework of the ongoing General Assembly sessions of the European Parliament (EP) in Strasbourg, France. Ursula von der Leyen, referring to the policies that the EU should follow regarding the energy crisis, said, “Everything we do has a price.” Acknowledging that the EU’s sanctions against Russia due to the Russia-Ukraine war, Leyen said that the era of cheap fossil fuels is now over for Europe, which was previously supplied at an affordable price for the EU and has become accustomed to this situation.

‘THE SUSTAINABLE WAY TO TRANSITION TO RENEWABLE ENERGY’

Signaling the era of more expensive energy for Europe, Leyen said, “The cheap supply of Russian energy was part of the business model of many European industries. This model was shattered by the Russian attack on Ukraine. The disturbing truth is that that model will not come back. International Energy Agency reminded us that in the absence of Russian gas, Europe is now structurally facing higher fossil fuel import prices. So the only sustainable way for our SMEs and industries is to switch to renewable energy. Renewable energy is not only affordable but can also be produced at home. Europe’ are also being evaluated,” he said.

‘GLOBAL COMPETITION IS GETTING DIFFICULT’

Stating that the financial aid that the USA has started to make to companies operating with its own origin by making some legal changes in the last period, has created an unfair competition situation for the EU, Leyen said, “Global competition is getting harder. Look at the USA. Recently, clean technology sectors (based on renewable energy) They approved an important investment plan called the Inflation Reduction Act, which also sets the standards for technology (using technology) “There should be an upward race, not a downward race. However, there is a risk that the Inflation Reduction Law may lead to unfair competition,” he said.

MESSAGE TO BRING YOUR OWN PATH TO THE EU

Leyen, who said that the EU should give more support to its own companies as a remedy for global risks, listed his suggestions. Leyen stated that the EU can maintain its place in global competition by applying a 4-stage process, “First of all, we need to set our own rules to facilitate national public investments in the transition. Secondly, we need to re-evaluate the need for European public investment in the transition process. Third point is that this law has “We need to work with the United States to address some of its most worrying aspects. Of course, the fourth issue is that we must further accelerate our transition to green energy.”

NEW INITIATIVE FOR COMPANIES TO STAY IN THE EU

Stating that the EU should re-update its rules for global competition, Leyen stated that the EU Commission will present new proposals in January. Leyen said, “It will make our state aid rules simpler and faster in the years to come. It will bridge the existing gap to target the entire value chain of strategic green sectors, including large-scale distribution and access to raw materials. This new framework will, for example, allow member states to access certain clean technology production products. This will allow it to take into account global conditions when providing assistance, not just those in Europe. This means that for some greenfield investments, member states may be able to afford third-country subsidies. This means companies continue to invest in the European Union and not in the USA, It will encourage us to be here, to stay here and to invest in the European Union,” he said. (UAV)

mn-1-general