Ahead of the upcoming Summit, EU leaders are expected to agree on a long-term solution to the energy problem. European Council (EC) President Charles Michel stated that the skyrocketing gas prices are a big concern for every household and business at the moment.
Electricity prices in EU countries have doubled since the beginning of this year, while natural gas prices are sharply increasing. Vehicles have been lining up at gas stations due to the sudden rise in demand. European consumers are on the verge of experiencing an "expensive heating season" for the winter days.
The energy crisis in the old continent threatens to hinder the fragile recovery of the regional and global economy. The crisis has been brewing since last winter, with unusually cold weather causing heating demands to skyrocket, reducing gas reserves in Europe to worrying levels in March 2021.
At present, after a period of effective implementation of the COVID-19 vaccine campaign, most European countries have gradually returned to normal life, and economic activities have been boosted. This is the reason for the high demand for energy consumption, especially in industries.
Facing the problem, the European Commission recently launched a series of temporary measures, allowing EU countries to keep fuel and electricity prices low. Each country itself is also researching its own solutions to help reduce the burden of cost for people.
Germany has significantly lowered electricity consumption tax from 2022 for consumers, and France is planning to support each needy family with a fuel voucher worth EUR10. Meanwhile, Russia, a major EU gas supplier, said that although the gas consumption of the country is also at a record high, Russia is ready to increase gas supply to Europe.
The EU's High Commissioner for Energy Kadri Simson said the current crisis was a “wake-up call” about the dangers of countries relying heavily on fossil fuels.
Finding a sustainable solution to the energy problem, including accelerating the green energy transition, is a necessary and urgent step for Europe towards stabilising the regional market.
