“No workaround” for rising energy costs, EU commissioner says

Europe is facing a sharp rise in energy costs with limited ability to cushion the impact, as policymakers warn that structural dependence on imported fossil fuels is driving the crisis.

The EU’s fossil fuel import bill has risen by €22 billion since the start of the Middle East conflict. Climate commissioner Wopke Hoekstra told the Financial Times that high public debt and weak national finances mean governments cannot repeat the large-scale support measures used during previous crises.

“Citizens are still being confronted with the price of a raw material that has gone up dramatically. That is something [for which] there is no workaround,” he said.

Hoekstra argued that the only viable long-term response is to accelerate the transition to domestic and low-carbon energy sources. “The only way forward is more electrification, more nuclear, more solar, more wind, more battery capacity, more interconnectors in the European Union, and all of it with much more speed.”

The European Commission is preparing new proposals to reduce fossil fuel dependence, including lowering electricity grid charges and ensuring electricity is taxed less than fossil fuels. At the same time, member states are being urged to rely only on “targeted and temporary” support, reflecting fiscal constraints in countries such as France and Italy.

Some EU finance ministers have called for a bloc-wide windfall tax on energy companies benefiting from high prices. However, Hoekstra warned that “the first analyses show it’s legally complicated [and] has significant economic side-effects . . . it’s a domain where we have to tread very, very carefully”.

The crisis has also strengthened political support for renewable energy and nuclear power, even in countries that were previously sceptical. Hoekstra noted that the situation highlights the risks of dependence on external energy supplies: “It’s quite hard to ignore the huge ramifications of the dependency that we have.”

Alongside immediate measures, the EU is reviewing its emissions trading system, with possible adjustments linked to industrial decarbonisation. Hoekstra indicated that any flexibility for industry would come with conditions: “If you allow for flexibility or allow for free allowances, it makes sense to have as a quid pro quo that companies become cleaner and invest in Europe.”

By Tamilla Hasanova