Follow up to inflation and energy measures and EU energy resilience for essential economic sectors

Background

The current energy price crisis risks becoming a supply crisis for consumers. Energy is responsible for 40% of the current wave of inflation and companies face even more pressure on their financial viability.

The EU needs to address this challenge quickly. Aids and support from public institutions were mainly directed at vulnerable consumers and households. However, many companies, especially but not exclusively SMEs, face real difficulties in integrating current energy and fuel prices into their cost structure.

Analysis of the impact of energy costs on companies in key sectors will explore possible solutions to safeguard strategic sovereignty in Europe at affordable prices for consumers.

Key points

The EESC:

• Considers that the energy crisis has impacted the economy in terms of high inflation, weak economic growth, strong pressure on public finances and the purchasing power of households and businesses, and loss of external economic competitiveness. Based on the ECB's recommendations, the EESC suggests establishing a "green triple T" criterion to ensure that future interventions are tailored, targeted and transition-proof. Non-selective price measures such as the price cap for certain foods would only prolong the period of high inflation over the long term.
• Calls on governments to encourage businesses and households to implement energy-saving and -efficiency measures that will enable energy demand to be permanently reduced. It is time to make the necessary investment (and establish the required fiscal framework conditions) in Europe's energy transition to reduce dependence on fossil fuels. Furthermore, the EESC is in favour of pressing forward with the changes proposed under REPowerEU to streamline and accelerate the granting of permits for installing renewable energy infrastructure. The Commission's long-term agenda should include revamping the energy market in order to avoid future disruption of energy supply and exorbitant prices.
• Notes that wide-ranging problems have arisen throughout the economy. These include disproportionate increases in production costs, reorganisation of supply chains, difficulties in supplying food and other goods, increasing investment costs and loss of purchasing power for European households.

Additional information

Section: Transport, Energy, Infrastructure and the Information Society (TEN)

Opinion number: TEN/803

Opinion type: Own-initiative opinion

Rapporteur: Felipe Medina (Employers - Group I / Spain)

Date of adoption by section: 26 June 2023

Result of the vote: 64 in favour, 1 against, 5 abstentions

Date of adoption in plenary: 12-13 July 2023

Result of the vote: 151 in favour, 1 against, 2 abstentions

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