Calviño: EU better equipped than in 2022 to face high energy prices

Brussels – “Compared to 2022, we are in a stronger position to manage external and global shocks.” The President of the European Central Bank, Nadia Calviño, calls for calm. Faced with the war in Iran and rising energy prices, she is trying to dispel fears, concerns, and waves of panic. The situation is serious, of course, but compared to the increased utility bills triggered by Russia’s war in Ukraine today, “there is more energy diversification, there are more renewables,” and therefore, as the European Union, “we are in a better position.” This is the message the head of the EIB is bringing to the table of the 27 economic ministers meeting in Brussels today (10 March) at the Ecofin Council to discuss risks to economic stability.

The surge in oil and gas prices following the conflict triggered by the US and Israeli military operations in Iran is rattling Europe, between the risk of stagflation and concerns for the industrial base. For this reason, Calviño brings a breath of optimism to an EU context fraught with concern. She seeks to restore confidence among markets, businesses, investors, and savers alike. She announces to everyone that the EIB “will mobilise 75 billion euros in the clean technology sector to ensure we have the right green energy infrastructure” needed to respond to the fossil fuel shock.

Ireland’s finance minister, Simon Harris, also underscores Europe’s capabilities and amplifies the EIB president’s message: “The EU market is more diversified than in 2022,” he said, convinced of the need to continue along this path. “We must move towards energy independence,” he emphasises. In this way, the EU will be able to respond to shocks and weather the energy crisis unscathed. In any case, “we are constantly and carefully monitoring the situation,” stresses the Dublin government minister, who is in favour of using the G7 countries’ crude oil reserves to stabilise prices.