Debate: Conclusions of the special European Council meeting of - May
Date: WEDNESDAY, 8 JUNE 2022
Speaker: Ursula von der Leyen
Language: EN

The European Commission took responsibility to translating this purpose into action. At the European Council last week, there we presented our very practical approaches and proposals on four main topics. The first one is: we have to get rid of the dependency on Russian fossil fuels. We have gotten rid already of coal, we are now in a phase where we can wind down the dependency on Russian oil: 90% till the end of the year – I would have hoped for 100%, but this is unanimity – so 90% is good till the end of the year. And now we have to look at gas, and for that we presented the EUR 300-billion package REPowerEU. What is in it? Three main pillars, the first one is diversify away from Russia towards more trustworthy and good suppliers, friends of us, for example the United Sates, and to invest in the necessary infrastructure in a way – when I’m speaking for example about pipelines and interconnectors – that yesterday it’s for gas but tomorrow it has to be hydrogen-ready so the investment is worth it. The second part is energy saving. And energy efficiency sounds so easy, it is a big topic. Because I just want to share with you one figure that really impressed me. If in the European Union over a year we decrease the average heating temperature by two degrees only, this is the equivalent of the whole supply of Nordstream 1, two degrees only. And this shows the power of energy savings and energy efficiency. And the third pillar is the most important, that is massive investment in renewables. And I could speak here for an hour about that topic, but I will not do that because I have to focus now on the three other topics. The second one is, and was, defence. At the Council the Commission did a gaps analysis: there is a clear underinvestment since the economic and financial crisis, you can see it. I give you a few figures that show that: in the last decade we had an increase in defence spending in the European Union by 19%, the United States: 65%, Russia: 300% and China: 600%. And I think these figures are telling. So now the good news is that leaders have stepped up and, if you look at the figures they have now put publicly as investment in defence it’s EUR 200 billion. Now it is important not only that we have that EUR 200 billion but how we spend it, and here join procurement is paramount because this is a question of ending the fragmentation, of economy of scale, of interoperability and of development of our industrial base here in the European Union. So we really have to look at that intensively.  The third topic was very important: on relief and reconstruction on Ukraine. I explained that extensively last time when we were here in Strasbourg, so today I want to focus on food security, and perhaps in my closing remarks it might be possible to refer to relief and reconstruction. Food security: honourable Members, the Russian invasion of Ukraine reverberates around the world. This is not just about what its impact is on economics, geopolitics or security architecture. It is about the lives and livelihoods of millions of people around the world, millions of people who fear that they will not be able to afford tomorrow how to heat their homes or feed their children. And the numbers are stark. This year alone, some 275 million people are likely to be at least at the risk of food insecurity across the world: not to know where to get your food as of tomorrow. And in an inflationary world we are in right now, that risk and those numbers can quickly spiral further out of control. Many families in parts of Sub-Saharan Africa already spend close to half of their income on food, they have no room to manoeuvre any more with rising food prices, no way. So it is no surprise that the World Bank has estimated that 10 million people are pushed into extreme poverty for every percentage point increase in food prices, 10 million people, one per cent increase.  So we should be under no illusions about the challenges ahead. We are facing up to a collision of crises, which will amplify food insecurity and debt distress around the world. Some of these are a legacy of the pandemic and wider issues linked to the cost of living. For instance, the rising energy prices that have driven up the costs of fertilisers or of transporting exports. Others are more long-term and structural, such as the effects of extreme weather linked to climate change. But, honourable Members, whether cyclical or structural, all of these impacts have one thing in common: they are massively – and deliberately – compounded by Putin’s war. This is a cold, callous and calculated siege by Putin on some of the most vulnerable countries and people in the world. And therefore, honourable Members, food has become now part of the Kremlin’s arsenal of terror, and we cannot tolerate this. I think this is the only way to describe Russia’s bombarding of grain storage, the blockage of the Ukrainian ports, in some cases even theft of grain from Ukraine. So at the moment there are round about 20 million tonnes of grain currently trapped in Ukraine. And it is our duty to dismantle Russia’s disinformation. Let us be very clear, in this hemicycle and outside: our sanctions do not touch basic food commodities. They do not affect the trading of grain, or other food, between Russia and third countries. And the port embargo specifically has full exemption on agricultural goods. So let’s stick to the truth: it’s Putin’s war of aggression that fuels the rood crisis and nothing else. Honourable Members, while the cause is without doubt, our response must be just as clear. And there are four areas of action which I believe we must now focus on together. The first is keeping the markets open so that trade can continue to flow. This means stepping up our work on the solidarity lanes. We are working very hard to provide an alternative way – I know it’s not optimal – but it’s at least to something make sure that the grain that is blocked in Ukraine gets on the markets as quickly as possible, this helps. But the world needs the Black Sea ports of Ukraine up and running again, because the majority of Ukrainian grain can only be exported in time through the Black Sea routes. And, therefore, I am very grateful to the United  Nations for its efforts. In parallel, we need to work with our partners to ensure there are no export restrictions or controls that will hamper the market. The European Union keeps its food exports going, and so should everyone else. The second area, this is solidarity and support to partners. This is about short-term support to the countries most at risk. For example, we are now investing an additional EUR 225 million to address the short- and medium-term needs of the Southern Neighbourhood partners. And I will be in Egypt next week to discuss with President El-Sisi how best we can target our support to the region; this is a big, big task for all of us. The third area is responding and investing in making local markets more sustainable and resilient. If you look at the figures, 50 years ago Africa produced all the food it needed, only 50 years ago. Then climate change made water scarce, and the desert swallowed hundreds of kilometres of fertile land, year after year. Today, Africa is heavily dependent on imports for critical food products, and this makes it vulnerable. And therefore, in the medium and long term, an initiative to boost the region’s own production capacity is critical to strengthen the region’s resilience. We should have the same mind-set like we did with the vaccines. Yes, at the moment being we have to bring food to Africa, yes it is the short-term solution and it is necessary, without any question. And we should look at how we use our grain here in Europe and how much we can really bring to Africa. But in the mid and long term, like with the vaccines, it should not be our food brought to Africa, but it should be the technology that is in Africa, and Africa produces itself what it needs. So here we really have to step up. And for this, the EU budget has already earmarked EUR 3 billion to invest in agriculture and nutrition, water and sanitation programmes, precision farming, nanotechnology for fertilisers, you don’t need the energy any more.  So there are many, many, many interesting technologies out there. But it is clear that we will need to do more. And we will need to move faster. And this is why the Commission has raised with Member States now the possibility to mobilise EUR 600 million of decommitted funds from the European Development Fund. And, please, I would be very, very happy if we move swiftly, I know that this Parliament is able to do it – you have proven it in the crisis, so let’s prove it another time. Finally, let me emphasise that we are not doing this alone. We are working very closely with Member States through the Team Europe approach. We are working closely with the United Nations and the G7 Presidency; that has made this a key theme of the upcoming leaders’ meeting. Unity and support are the strongest messages we can send in the face of Russian action and Russian disinformation. And, honourable Members, it is only natural that many of our partners around the world see this conflict through the prism of food or energy prices. And they expect the European Union, of course other countries around the world too, but they expect the European Union to show the same resolve, the same solidarity as we have rightly shown towards Ukraine, when it comes to addressing the food crisis in the world. And this is exactly what we will do through our own response, through our work within the G7 and other partners. Long live Europe.