Iran, the EU chooses to wait and see: “Before taking measures against high energy prices, we need to understand what is happening”

Brussels – Extraordinary European measures in response to high energy prices caused by the conflict in Iran and the Middle East can wait. The European Union and its Member States are currently waiting to see how the situation develops in order to better understand the likely scenario, and only then will the necessary measures be taken. The European Commission and the Cyprus Presidency-in-Office of the EU Council clarify the direction of policy and the response to the requests made by the Minister for the Economy, Giancarlo Giorgetti, who, without going into detail, asked for joint responses to the common problem of rising energy bills. 

“We had a discussion on energy because it is linked to the issue of development” and competitiveness, said Makis Karavnos, Cyprus’s Minister of Finance and current President of the Ecofin council, at the end of the meeting of European Union economic ministers. Therefore, he clarified that “at the moment there are no specific measures” being considered, because “first we need to assess the situation and then, once the situation has stabilised, we will decide what measures to take.”

 This approach has also been confirmed by the Commissioner for Economic Affairs, Valdis Dombrovskis: “The situation remains extremely volatile,” he notes. Precisely because of this changing landscape, it is preferable to “wait and see how long this situation will last and what impact it will have” on the economy, and “based on this, a decision will be made.” 

Preparations are being made for various possibilities, but no advance information is being provided on what the European Union’s response might be. In 2022, when Russia’s war in Ukraine caused energy prices to rise, the EU chose to relax the stability pact and common budget rules, and then to introduce a cap on gas prices in response to high bills. Four years on, specific measures are once again being considered, but without any mention of them. All eyes are on the progress of the war.