18.8.2023
EN
Official Journal of the European Union
C 293/9
1.6.
It strongly endorses all policy steps to reduce inflation sustainably over the course of this year and is in favour of economic recovery based on investments in the green, digital and strategically important sectors and industries, supporting the EU industrial base and global competitiveness, while using all of advantages of the single market.
It is absolutely vital that production of clean technologies becomes a business case for Europe.
The social partners want to ensure, at all costs, that knowledge, skills and the production base do not leave Europe.
To ensure smart independence, industry — and the jobs it creates — has to stay in Europe.
Therefore, being competitive and creating quality jobs must become a way of life and central to making and implementing our policies.
1.7.
The implementation of the Green Deal including the transition to a carbon neutral economy and maintenance of a competitive EU industry requires vast investments from public and private sources.
However, the EU lacks a long-term framework for robust financing of the Green Deal implementation.
The EESC therefore asks for an adequate framework in order to support measures financing the transition to a climate neutral economy in a simple and efficient manner.
1.8.
In times of crisis and uncertainty, objective information and strong political leadership are crucial.
The EESC therefore recommends continuing to ensure appropriate communication, including throughout the period when the consequences of the crisis are being addressed.
The reform of the energy market and system will have an impact on all industries and consumers; it is absolutely essential for stakeholders to have their say in the legislative process, and be adequately informed about this fundamental transition.
2.
Basic facts and context 2.1.
The energy crisis and its impact on people’s lives and business prosperity is still ongoing.
This makes it difficult to measure its final overall impact on the economy.
We can, however, surely declare that the biggest impact of the crisis has been reflected in inflation (the highest for many decades) and the public finances (having played a strong role in mitigating the impacts of high prices and costs and massively supporting investments to make them less vulnerable).
The cause of high energy prices was the skyrocketing gas prices (1).
2.2.
It is appropriate to recall the Energy Union’s key milestones which have specifically set the course of the energy system’s future development.
Some of its pillars, especially those relating to energy security, have been recently underestimated, mainly owing to a strong focus on and preference for cheap Russian gas, at the time considered a temporary source during the green economic transition and to the purely political hasty exit from stable clean sources.
2.3.
Regarding the different energy mix in the EU Member States, which reflects, among other aspects, their geomorphologic conditions, meeting the Energy Union’s targets is strongly influenced by national circumstances.
This factor is visibly reflected in the speed of the EU’s green transition.
One thing, however, remains clear: the key priority of the Energy Union during the crisis was the security of supply, which was sometimes at odds with the green transition targets.
2.4.
The current energy crisis has revealed how serious the vulnerability of the EU energy system is and how important it is to pursue the open strategic energy autonomy of the whole energy industry chain.
At the same time, it has demonstrated its ability to face and absorb robust exogenous shocks and their consequences.
The energy crisis was triggered by a mix of economic, political and technical elements.
The crisis began with economic upheaval following the COVID-19 pandemic which pushed up global energy demand, while third country interference and low levels of gas storage in some European countries during the 2021/2022 winter season combined with higher demand underlined the gravity of the situation.
The already difficult situation then worsened with Russia’s invasion of Ukraine in February 2022, exacerbated by the EU’s dependence on fossil energy sources, with a strong direct influence on energy prices and supply security.
2.5.
The impact of the energy crisis on the EU economy has been damaging.
In 2022, it directly contributed to all-time record inflation in the recent history of EU integration, with average EU inflation at 9,2 % (2), which is expected to fall to 6,7 % (still very high) in 2023 and 3,1 % a year later (3).
High inflation had been the most visible phenomenon of the 2022 economic performance, with a knock-on effect on other elements of the consumer basket and a strong impact on
(1) (2) (3)
Electricity prices sharply increased, with a varied impact depending on the local importance of gas in the generation portfolio, reaching 150-300 EUR/MWh in 2022.
EC Harmonised Index of Consumer Energy Prices 2023 Edition shows that the annual rate in 2022 reached 20 % on average.
However, the picture across Member States was different, with a maximum level recorded in Italy of 65 %.
Spring 2023 Economic Forecast: Eurostat.