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The era of “cheap energy” is over, according to the EU

EU Commission President Ursula von der Leyen: “The supply of cheap energy from Russia was part of the business model of many European industries. This model was shattered by the Russian attack on Ukraine”

Ursula von der Leyen, President of the European Union (EU) Commission, stated that the “cheap energy” era has come to an end due to the Russia-Ukraine war, “Europe’s gas tanks are full, we are safe for this winter.” said.

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Speaking at the European Parliament (EP) General Assembly session held in Strasbourg, von der Leyen stated that the global natural gas supply has tightened due to the Russia-Ukraine war and that the amount of gas that Russia has sent to Europe by pipeline has decreased by 80 percent in the last 8 months.

Voicing that they can compensate for this situation by diversifying supply, increasing energy savings and accelerating renewable investments, von der Leyen said, “Europe’s gas tanks are full, we are safe for this winter.” said.

“All of this has come at a cost. Cheap energy supply from Russia was part of the business model of many European industries. This model was shattered by the Russian attack on Ukraine. The truth is, this model is not coming back.” said von der Leyen, reminding that in the absence of Russian gas, Europe faced much higher fossil fuel prices.

Von der Leyen emphasized that the only sustainable way for European industry and SMEs is the transition to renewable energy, and said that the renewable energy transformation cannot happen overnight.

 

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reaction to US law

“There is a risk that the US disinflation law could lead to unfair competition.” Von der Leyen, who made the evaluation, said that the logic of buying American goods in the law, tax cuts that could lead to discrimination and production subsidies that could be against Europe were worrying.

Von compiler noted that they needed to address these issues and that Europe had to respond by drafting a law to reduce inflation.

Voicing that EU countries should change their rules to increase and facilitate public investments, von der Leyen explained that they should work with the US to address the most worrying aspects of this law and accelerate the green transformation.

Emphasizing that the European industry needs a structural solution in order to maintain the leadership in green transformation in the medium term, von der Leyen added that they will present the proposal to establish a fund in this area in the summer months when the EU’s long-term budget will be evaluated.

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