Pedro Sánchez argues that the EU27 must act urgently to curb the high economic and social costs of the energy crisis

Prague (Czech Republic)

Group photo of the informal meeting of the Heads of State and Government of the European Union | Pool Moncloa/Fernando y Calvo y Pool Consejo Europeo

The President of the Government of Spain, Pedro Sánchez, took part in the Informal European Council to discuss Russia's war in Ukraine, the energy crisis and the economic situation. During his speech, Sánchez stressed that, in the current situation, the EU27 must adopt urgent measures such as those advocated by Spain since 2021: capping the price of gas; creating a platform for the joint purchase of gas that focuses on the supply of LNG; and tackling the liquidity problems in the electricity market caused by volatility and high demand.

The President of the Government of Spain reaffirmed that "In Spain we are satisfied because the Commission is finally taking up many of the ideas that we have been advocating in recent months, such as the cap on gas prices. More and more Member States are advocating this action, as a key measure to control inflation and, at the same time, maintain the 'level playing field' (single market) among all".

As Sánchez pointed out, the war is having a dramatic impact on Europe's energy situation, with a spill-over effect on our economy. "Our main objective is to ensure that we guarantee security of supply and affordable energy for our homes and businesses, particularly as the cold of winter approaches", he said. For this reason, the President of the Government of Spain stressed the importance of strengthening the system in the long term by acting on two fronts: energy interconnections and the reform of the EU electricity market.

On interconnections, Sánchez announced that Spain will use part of the RepowerEU resources to complete the gas interconnection up to the border with France. This interconnection, which could be ready in about 8 months, would also be compatible with hydrogen. On the reform of the EU electricity market, Sánchez argued that it should be adapted to a greater penetration of renewable energies and self-consumption.

On the war in Ukraine, the eighth package of sanctions against the Russian regime was adopted yesterday. The EU27 addressed Putin's escalating measures and the illegal annexation of four Ukrainian territories: Kherson, Zaporizhzhia, Donetsk and Luhansk and the future of Ukraine and its reconstruction. "Spain will never recognise this unilateral modification of borders, which is contrary to international law, and will continue to help the people of Ukraine defend their democracy, freedoms, international legality and human rights", Sánchez stressed.

Sánchez also expressed his concern about one of the consequences of the war, namely the lack of food security: "In Europe, we must make sure that Putin's war does not lead to a global food crisis". For this reason, the president insisted on the importance of extending the grain export agreement that has allowed the transport of some 3.7 million tonnes of grain from Ukraine across the Black Sea.

The impact of Putin's war on European economies

The President of the Government of Spain, Pedro Sánchez, at the Informal European Council to discuss Russia's war in Ukraine | Pool Moncloa/Fernando Calvo y Pool Consejo Europeo

During the Council, leaders discussed the impact of Putin's war on European economies, such as uncertainty and rising inflation, and were united in tackling the causes of soaring prices and protecting people and businesses. For this, Spain has already approved various measures totalling 35 billion euros to protect families, workers, SMEs, self-employed people and the most affected sectors. "We have to finance them, logically, by asking for an additional effort from those who are benefiting most from this situation. So that this time the same people who paid in the financial crisis do not pay this time. Because there is no social justice without tax justice", Sánchez stressed.

Finally, the EU27 discussed the forthcoming reform of European tax rules. In this sense, Sánchez advocates revising them with a twofold objective: to preserve solid public finances, guaranteeing their sustainability; and to reinforce sustainable growth, increasing public and private investment in areas aimed at the green and digital transition.

Non official translation