Brussels is preparing action on four fronts, working closely with Berlin and Paris, with the goal of keeping energy prices under control across the EU\u2019s 27 member states as concerns grow about a renewed crisis in the Middle East. While Berlin sees Donald Trump\u2019s decision to block the Strait of Hormuz and Iranian ports as a tactical move, the uncertainty surrounding recent developments and the volatility coming from Washington have pushed the EU to develop backup plans to support its members.<\/p>\n
Despite reports that the United States and Iran may soon resume talks in Pakistan, the EU is moving ahead with its own measures. These were discussed in detail at a recent meeting of the College of Commissioners, where a \u201cTemporary Crisis Framework\u201d took center stage as a way to manage the situation.<\/p>\n
The Commission\u2019s planning reflects both Trump\u2019s unpredictable approach and the impact of blocking the Strait of Hormuz and Iranian ports. About 1.7 million barrels of oil per day were moving through those routes during April, with China as the main buyer. If that supply disappears, energy prices are expected to climb further worldwide while oil availability tightens. This concern was raised during the Commissioners\u2019 discussions.<\/p>\n
With the risk of escalation still present and uncertainty continuing, Brussels has begun talks with all member states on loosening state aid rules. Several governments have pushed for this step to support businesses and households dealing with higher energy costs, which the Commission estimates have already exceeded \u20ac22 billion just 44 days after the war began.<\/p>\n
On April 22, two days before an informal European Council meeting expected to take place in Cyprus, the Commission plans to announce a \u201ctoolbox\u201d designed to limit energy price increases. This effort will be paired with a legislative proposal to adjust electricity taxes, likely in May, and progress on the EU\u2019s grid expansion package, which aims to strengthen Europe\u2019s electricity network by early summer. An updated framework for the Emissions Trading System is also on track, with revisions expected in July, according to Ursula von der Leyen.<\/p>\n
The Commission president called the immediate restoration of free navigation through the Strait of Hormuz critical for global security. She also warned that instability in Lebanon could derail efforts toward peace in the region, urging all parties to respect the country\u2019s sovereignty and move toward a full ceasefire.<\/p>\n
EU High Representative Kaja Kallas took a sharper tone regarding the roles of the United States and Israel. Speaking at the UN Security Council, she compared Russia\u2019s invasion of Ukraine with the conflict in the Middle East, arguing that both represent the most serious breakdown of international law since World War II.<\/p>\n
Support measures<\/p>\n
Based on current developments in the Middle East and after consultations with all 27 member states, the Commission is expected to present a proposal in April to relax state aid rules. This will be part of a broader package aimed at limiting the effects of the energy crisis linked to the war in Iran. The College of Commissioners met Monday just before Trump moved forward with the blockade of the Strait of Hormuz and Iranian ports, a step that reflects Brussels\u2019 concern about a prolonged energy crisis that could affect supply within the EU.<\/p>\n
The upcoming toolbox, set to be announced on April 22, will include plans to fill natural gas storage facilities, coordinate the release of strategic oil reserves, and provide guidance on temporary tax cuts for energy bills. Additional measures to reduce energy demand are also expected. These may draw from the International Energy Agency\u2019s 10-point plan, which includes lower speed limits on highways, up to three days of remote work per week, and car-free Sundays in major cities.<\/p>\n
New warning on GSI<\/p>\n
Von der Leyen also urged member states to complete work on the EU grid package by early summer 2026. In Cyprus, progress remains stalled due to the island\u2019s continued energy isolation and delays in the Great Sea Interconnector project. The delays stem from disagreements between Nicosia and Athens, the need for updated feasibility studies, and obstacles raised by Turkey.<\/p>\n
The Commission is also expected to release updated benchmarks for the Emissions Trading System soon. The system has recently become a point of political tension and is especially important for Cyprus. Von der Leyen confirmed that the planned revision remains on schedule for July.<\/p>\n
EU and Hungary head toward major negotiations<\/p>\n
A significant round of negotiations is beginning to take shape, drawing attention away from the Commission\u2019s initial recommendations and the position of Hungary\u2019s newly elected leader, Peter Magyar, who is expected to replace Viktor Orb\u00e1n after 16 years as prime minister.<\/p>\n
Following strong support from Brussels after Magyar\u2019s decisive win in the April 12 elections and statements about Hungary returning to the European path, attention has shifted to rebuilding EU-Hungary relations, which faced repeated strain during Orb\u00e1n\u2019s time in office.<\/p>\n
Brussels expects that once Magyar takes office, likely between May 5 and 12, Hungary will take four key steps. These include approving \u20ac90 billion in EU loans to Ukraine, which Orb\u00e1n had blocked, approving the 20th sanctions package against Russia, lifting objections to Ukraine\u2019s EU membership path, and moving forward with rule-of-law reforms.<\/p>\n
Magyar has already said, after a phone call with von der Leyen, that he plans to remove Hungary\u2019s objections to EU loans for Ukraine. He has not yet taken a clear position on the other issues, a stance that may connect to expectations that frozen EU funds for Hungary could be released. Hungary stands to lose around \u20ac10.4 billion in Recovery and Resilience Facility loans, \u20ac7 billion from cohesion funds, and \u20ac16 billion from SAFE defense loans. At the same time, the country pays \u20ac1 million per day in fines to the European Court of Justice for violations of EU migration rules.<\/p>\n
An EU source told Kathimerini that both the Commission\u2019s demands and Hungary\u2019s financial losses are likely to become part of a large negotiation process following discussions between von der Leyen and Magyar.<\/p>\n","protected":false},"excerpt":{"rendered":"Brussels is preparing action on four fronts, working closely with Berlin and Paris, with the goal of keeping…\n","protected":false},"author":2,"featured_media":63758,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[104],"tags":[211,210,4894,22701,73,18785,21754,1533],"class_list":["post-63757","post","type-post","status-publish","format-standard","has-post-thumbnail","category-brussels","tag-belgium","tag-brussels","tag-cyprus","tag-energy-prices","tag-european-union","tag-middle-east-crisis","tag-oil-supply","tag-state-aid"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116426798948195244","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/63757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=63757"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/63757\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/63758"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=63757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=63757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=63757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}