Countries with greater financial capacity and more renewable resources are unlikely to agree to emergency measures that could distort fine local market incentives or redistribute resources to other countries. According to several diplomats familiar with European policy, these countries prefer to use local legislation to address any significant increase in energy costs. A diplomat from a Northern European country, who preferred to remain anonymous, said: "We don't want a big commitment on this issue, we don't prefer emergency regulations, we prefer market solutions." The European Commission is facing increasing pressure from a growing number of countries to take emergency measures to address rising energy costs caused by the war in the Middle East. Italy, Austria, Slovenia, and Slovakia are among the countries publicly pressuring Brussels to respond more strongly to the crisis, with at least two other countries expressing frustration at the Commission's slow response. Oil and gas prices have risen sharply since the start of the American-Israeli war on Iran on February 28, with the price of a barrel of oil exceeding $100 in the first week of the war before beginning to decline. However, the Commission has refrained from formally using any powers at the European Union level, and EU Energy Commissioner Dan Jorgensen said there is no immediate threat to supplies. Instead, the Commission has highlighted current long-term plans to diversify supplies, reduce demand for fossil fuels, and scale up local renewable energy sources. However, these measures could lead to a clash with other member states that prefer a market-based approach. He added that countries might support measures at the EU level if the energy situation actually deteriorates, but clarified: "We don't prefer that." An EU diplomat, who generally supports taking concrete measures to address the energy crisis in Europe, warned that measures must be both short-term and long-term, given that the continent was facing some of the highest energy costs in the world even before the Middle East war. The diplomat, who wished to remain anonymous, said: "There is some concern that if things stabilize in some way, this focus on energy prices will fade," stressing that "momentum must be maintained." A European Commission spokesperson said "important discussions are currently underway," adding that Commission President Ursula von der Leyen "will present our assessment and options" at the European Council summit next week. Italy, Austria, Slovenia, and Slovakia are among the countries publicly pressuring Brussels to respond more strongly to the crisis. Europe may resort to emergency powers that include easing state aid rules to allow for consumer and company subsidies, coordinating demand reduction, and imposing a gas price cap. The Commission has also called on member states to reduce energy bills by cutting local energy taxes. However, countries with fewer resources and greater electoral pressure are running out of patience and are seeking to push the Commission to use EU-level emergency powers, which the bloc used after the energy crisis caused by Russia's war on Ukraine in 2022. These powers include easing state aid rules to allow for subsidies to consumers and companies in difficulty, coordinating demand reduction, and imposing a gas price cap. There have also been numerous calls to suspend or change the emissions trading system, including from Italy, although EU's Clean Transition chief Teresa Ribera has ruled that out. At a recent EU leaders' meeting, German Chancellor Friedrich Merz called for speeding up the planned review of the emissions trading system. Additionally, a paper drafted by the European Council ahead of next week's EU leaders' meeting, obtained by Politico, urged the Commission to reduce the impact of carbon pricing on electricity prices "while maintaining the core role of the emissions trading system in the energy and climate transition." Cutting Bills Italian Finance Minister Giancarlo Giorgetti was the first to challenge the Commission's cautious stance, calling on Brussels to use those tools after the Ukraine crisis at last week's finance ministers' meeting. Italians face the fourth-highest energy costs in Europe due to the country's continued reliance on expensive imported gas. This reliance risks exacerbating any electricity price increases caused by the ongoing conflict, as Prime Minister Giorgia Meloni works to reduce consumer bills. An Italian official, who asked to remain anonymous to speak freely, said: "Italy is very concerned about the impact on inflation due to our inefficient energy policy," adding: "That's why it's better to take action to avoid inflation, and you can't spend money in an election year." Italy wants a "unified" response considering its "strong industry," according to prominent legislator Raffaele Navie in Forza Italia, a party in Meloni's ruling coalition that supports Rome's position. Navie sent Politico a statement stressing the need to coordinate cross-border actions to avoid "imbalances" that could arise if EU countries with varying financial capacities respond to the crisis individually. Several other countries are also expecting the Commission to come up with concrete proposals, either at the upcoming energy ministers' meeting or at the European leaders' summit later this month, according to three EU diplomats and a high-level ministerial official from Slovenia. This puts the ball entirely in the Commission's court and represents a subtle criticism of the wait-and-see approach the EU's executive has maintained so far. The Slovenian official said: "It's not long-term plans that will succeed, but short-term measures," while acknowledging that the slow decision-making process in the EU makes reaching an agreement on such measures "very difficult." Immediate Measures Among the immediate measures Slovenia will demand next week are a tax on windfall profits made by energy companies, first proposed in 2022, and coordination to replenish Europe's critically low gas reserves, according to the Slovenian official. Similarly, Slovak Prime Minister Robert Fico called for "concrete proposals" instead of "data or general statements" after his meeting with Commission President Ursula von der Leyen last week. He said he hopes for concrete policies to be adopted at the European Council summit later this month. Meanwhile, an Austrian government spokesperson confirmed that Vienna also wants to take more realistic measures.
