Insights | EU Insight 9 September, 2022

09/09/2022

EU Insight 9 September, 2022

Brussels, 9 September 2022

 

ENERGY MINISTERS DISCUSS ENERGY EMERGENCY MEASURES TO BE PROPOSED NEXT WEEK

Earlier this week, Commission President Ursula von der Leyen proposed a set of five short-term measures to address the energy crisis, which EU energy ministers discussed today. The proposals include (i) a mandatory target to reduce electricity use at peak hours, (ii) a cap on revenues of electricity producers, (iii) a windfall tax for fossil fuel companies, (iv) liquidity support to assist energy utility companies, and (v) a cap on the price of gas imported from Russia. The Commission will present a legislative proposal on emergency electricity market interventions, while a more comprehensive legislative package is expected to presented in early 2023.

 

CO-LEGISLATORS AGREE ON MIGRATION AND ASYLUM REFORMS

The European Parliament, with the Czech, Swedish, Spanish, Belgian and French permanent representatives, signed a Joint Roadmap to approve the New Pact on Migration and Asylum by 2024. Reforming the migration and asylum rules of the European Union is seen as a top priority by the Council of the European Union and the Parliament, who have vowed to work as closely as possible to adopt the reform. Most border control competences lie in the hands of the member states, which has impeded common EU responses to problems such as the 2015 migration crisis.

 

ECB RAISES INTEREST RATES BY 75 BASIS POINTS

The European Central Bank (ECB) announced its monetary policy decisions opting to increase rates by 75 basis points (0.75%) instead of 50 basis points (0.5%), which was also being considered. The increase comes at a time when current inflation in the eurozone hit 9.1% in August. New interest rates will be effective as of 14 September. Moreover, the ECB’s Governing Council signalled that rates may soon be increased again because of persisting inflation, which is now expected to average 8.1% in 2022. At the same time, ECB staff expects the economy to grow by 3.1% in 2022, 0.9% in 2023, and 1.9% in 2024.

 

TRUST IN THE EU IS ON THE RISE AMID ENERGY CRISIS AND UKRAINE WAR

The latest Eurobarometer survey indicates increased trust of citizens in the EU, and continued strong support for the EU’s response to the Russian aggression against Ukraine. In addition, the survey, conducted in June-July 2022, shows that 65% of Europeans are optimistic about the future of the EU. Moreover, an overwhelming majority of EU citizens support investments in renewable energy and action to reduce the EU’s dependency on Russian energy sources. While the approval rate of the euro has reached its highest level ever, Europeans are increasingly concerned about the economic situation in the EU and in their own country.

 

EU-UKRAINE ASSOCIATION COUNCIL SUPPORTS UKRAINE’S EUROPEAN INTEGRATION EFFORTS

The European Union and Ukraine agreed on further cooperation following their 8th Association Council meeting. The Association Council highlights that both sides have given priority to integrating Ukraine’s payment market participants into the Single Euro Payments Area as well as the intention to continue negotiations on the review of customs duties under the Association Agreement. Both sides also announced the start of negotiations on Ukraine’s participation in the EU Single Market Program. Moreover, the EU reiterated its commitment to preserve Ukraine’s macroeconomic stability during the war with macro-financial assistance package of up to EUR 9 billion.

 

COMING UP NEXT WEEK

  • 12-15 September: European Parliament Plenary. On the agenda: State of the Union, Renewable Energy Directive, Debate with the High Representative of the EU for Foreign Affairs and Security Policy Josep Borrell.
  • 13 September: College of Commissioners meeting. On the agenda: energy emergency measures, European cyber resilience act, European media freedom act, Forced labour products ban.
  • 14-16 September: Informal meeting of agriculture and fisheries ministers.

 

Karl Isaksson, Managing Partner Brussels, Kreab

____________________________________________________________________

Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.comwww.kreab.com/brussels • Twitter: @KreabEU.

 

Contact us

Choose city
  • Bangalore
  • Barcelona
  • Beijing
  • Berlin
  • Bogota
  • Brasilia
  • Brussels
  • Bucharest
  • Budapest
  • Buenos Aires
  • Chennai
  • Copenhagen
  • Frankfurt
  • Genova
  • Helsinki
  • Hong Kong
  • Hyderabad
  • Jakarta
  • Lima
  • Lisbon
  • London
  • Madrid
  • Mexico City
  • Milan
  • Mumbai
  • New Delhi
  • Oslo
  • Panama
  • Quito
  • Rome
  • Santa Cruz de la Sierra
  • Santiago de Chile
  • São Paulo
  • Singapore
  • Stockholm
  • Stuttgart
  • Tokyo
  • Valencia
  • Warsaw

Here you can manage your cookies preferences, more info:

We use first party cookies and third-party technologies to operate our website and customize its content properly and securely. We also use them to analyze your browsing experience and to target advertising according to your preferences and avoid fraudulent practices through user-activity analysis. Cookie Policy.