Photo : PA Media/BBC
NIAS Europe Daily Brief #12, 15 October 2021, Friday
IN FOCUS
By Joeana Cera Matthews
EU’s plan to deal with the European energy price crisis
On 13 October, the European Union proposed a ‘toolbox’ that would address the energy price crisis that has left countries across Europe in a fix. The toolbox unveiled by the EU expects to reduce the impact of the inflating prices on consumers. The bloc members would, in this manner, be able to stabilize the energy rates. The EU Energy Commissioner Kadri Simson expressed his concern over the mounting prices which are affecting the bloc which is still only recovering from the pandemic.
What are the tools?
The proposal includes measures that would regard both immediate as well as medium-term ideas to manage the skyrocketing prices. Some of the immediate measures include: safeguarding electricity grids to avoid disconnections, provision of aid to companies and industries based on the EU law, and looking for anti-competitive behaviour. These measures aim to protect consumers and the businesses from the growing prices. The medium-term measures focus on enhancing market resilience while backing efforts to decarbonize. They involve exploring the possibility of members jointly procuring gas, establishing regional risk-analyzing groups to inspect cross-border gas transit, and forming energy storage capacities. Further negotiations on the same are expected to be held during an EU Summit on 21 and 22 October.
What is the need for these tools?
As Simson stated: “The current situation is exceptional, and the internal energy market has served us well for the past 20 years. But we need to be sure that it continues to do so in the future.” The tools enable members to reduce prices without being worried about breaching strict competition rules. Few countries across the bloc have already shown initiative to implement the tools proposed by the EU. In an effort to curb prices, France assured a ceiling price along with plans to offer impoverished households with financial support. Italy, meanwhile, had already planned on tax reductions to ease the economic strain on the consumers.
How effective are these tools?
According to a report by Clean Energy Wire, the German chemical industry claims that the toolbox may assist the consumers and protect them from ‘energy poverty’; the businesses and energy-intensive companies will fail to be supported in a similar manner. Head of the Low Carbon and Circular Economy program at the Institute for European Environmental Policy, Tim Gore, commented that renewable energy is the only long-term solution in sight. In order to achieve this goal, he suggests there be tax cuts on electricity. According to Gore: “It would make most sense for governments to cut taxes on electricity, which would be in line with the longer-term reforms to energy taxation to support the electrification of the economy, which is vital for the green transition.” Providing buyers with replacements to fossil fuels is another suggestion. The more apparent the transition to renewable energy becomes to the consumer, the faster it will occur.
References
Kerstine Appunn, “EU toolbox against energy price hike not enough, says German energy intensive industry,” Clean Energy Wire, 14 October 2021
Richard Connor, “EU unveils toolbox against high energy prices,” Deutsche Welle, 13 October 2021
IN BRIEF
By Vaishnavi Iyer
THE UNITED KINGDOM
MP stabbed in a constituency meeting
Sir David Amess, a conservative MP was stabbed in a constituency meeting in Leigh-on-Sea. Officers arrested a man, and recovered a knife. They said they were “not looking for anyone else in connection to the incident”. Sir Duncan, a former party leader expressed his grief. Southend councillor Lamb remembered Amess as a daily man, who was “always trying to help people, and especially refugees.” A social conservative raised as a Roman Catholic, he was a strong campaigner against abortion and animal welfare issues. The MP was operated at the scene but succumbed to his injuries. (“Tory MP Sir David Amess dies after stabbing,” BBC, 15 October 2021)
RUSSIA
Russia denies using gas as a weapon
Putin reassured the EU stating Russia was not using gas as a weapon. The country stepped in to stabilize Europe’s gas prices amidst the gas crisis Europe is facing. The energy crunch has amplified the required tripling investment to steady the renewables market. Countries like China have boosted coal and fossil fuel exports. Russia offered to increase supplies in the European markets and denied any political interests. The European skepticism comes due to Russia’s insistence on opening up Nord Stream 2 to facilitate a faster gas supply to Europe. (“ Russia can help Europe, not using gas as a weapon says Putin,” Reuters, 15 October 2021)
INTERNATIONAL
Eddie Jaku passes away
Imprisoned in four concentration camps, during the second world war, Eddie Jaku freed himself leading a daring train escape. The 101-year-old had dedicated his life to activism, and advocating peace and kindness. His memoir titled The Happiest Man on Earth, contained his extraordinary story of survival. He said: “I do not hate anyone. Hate is a disease which may destroy your enemy, but will also destroy you.” Jaku had endured the trauma of the holocaust, and decided to live the rest of his life preaching forgiveness and peace. Jaku received the medal of the Order of Australia for serving the Jewish community. (“Eddie Jaku: Holocaust survivor and peace campaigner dies aged 101,” BBC, 15 October 2021)