EU leaders discuss energy prices on day 2 of summit

By Agnes Szucs

BRUSSELS (AA) – Day two of an EU summit kicked off on Friday with leaders of the bloc set to tackle energy prices and the new EU defense strategy.

The EU leaders will assess plans to tackle the energy crisis exacerbated by the Russia-Ukraine war, including the European Commission’s proposal on joint gas procurement and storage, as well as initiatives by Spain and Belgium on capping energy prices.

While the idea of joint gas purchases is mostly supported by the EU governments, leaders are divided on a proposal to intervene in energy markets to control prices.

Spain, Italy, Greece, Portugal, France, Belgium, and Poland are in favor of the proposed changes, while Germany and the Netherlands are opposed.

On the way to the meeting, Belgian Prime Minister Alexander De Croo argued that energy prices “have nothing to do with reality” and that without reforms, the public ends up suffering.

He acknowledged that it is not easy to intervene in markets, but said in times of war “we can take extraordinary measures.”

For his part, Latvian Prime Minister Krisjanis Karins said a better solution would be to “provide direct aid to vulnerable households” to “minimally distort the market and to keep the investment environment open for renewables.”

- Strategic Compass

The EU leaders are also expected to endorse the Strategic Compass, the bloc’s new defense and security action plan adopted earlier this week by foreign ministers.

EU foreign policy chief Josep Borrell, who worked over two years on the document, told reporters that the Strategic Compass will “provide more security and more defense capabilities to the European Union” to protect its people and to be able to act in international crises.

The strategy seeks to set up an EU force of 5,000 troops swiftly deployable in international crises, secure the bloc against cyberattacks, and ensure smarter joint use of European military capabilities in line with NATO requirements.

- Ukraine

“We had a long discussion last night on the situation in Ukraine, and (US President) Joe Biden also joined us for a part of the talk to reaffirm our perfect unity,” said Charles Michel, president of the European Council.

The leaders agreed to set up a Ukraine Solidarity Trust Fund to support Ukraine in mid-and long-term reconstruction.

The EU heads of state and government also discussed new sanctions on Russia, but were unable to find a common denominator.

“We intend to work on the implementation of sanctions to close the loopholes, and strengthen our efforts to curb these alternative ways to evade the consequences of restrictive measures,” Michel said.