EUROGROUP,COUNCIL OF THE EUROPEAN UNION interesting latest news

 

Press material Friday 30 September 2022

● European Council   30/09/2022 17:59 | Statements and remarks | Message of President Charles Michel on Russia's illegal annexation of Ukrainian regions   President Putin has decided on Russia's illegal annexation of the Ukrainian regions of Donetsk, Lugansk, Zaporizhzhia and Kherson. This annexation follows sham referenda and constitutes a dangerous and irresponsible escalation. It is designed as a step to intensify the nuclear threat against the rest of the world. The European Union unequivocally rejects and condemns these illegal annexations. It will never recognise them, just as it did not recognise the annexation of Crimea in 2014. Once again, the Kremlin is trampling on the UN Charter and the international order. To the Ukrainian people, I want to say this: the European Union is and will remain resolutely on your side. You are defending the territorial integrity of your country, you are defending the future of your children. And you are defending our common universal values of freedom and dignity. I also want to send a message to the citizens of the European Union. Ukraine and Ukrainians are under attack, and this attack is also an aggression against our fundamental freedoms and democratic principles. Russia is firing missiles at Ukrainians and Russia has launched an “energy missile” at Europe, targeting the heart of our economic and social system. The damage is severe. Energy is expensive. Every household in Europe is affected by soaring energy bills and supermarket receipts. And this will have a lasting impact on all of us. That is why a new Energy Union must be developed now, with a real common strategy. Because there is no alternative, if we want to guarantee security of supply, affordable prices, and the climate transition. Today, all of us, we must understand that we have entered a new world, where many of our points of reference have been turned upside down. We must face this situation with clarity. Russia has decided on a massive mobilisation to increase its war effort tenfold. We Europeans must also mobilise. Not for war, but rather to preserve peace, to protect our security and to guarantee the future of our children. Citizens, companies, political and social leaders: all of us, everyone has a responsibility to assume, a role to play. We are strong. We will stick together. The European Union is taking action. The European Union protects and does so with all the necessary means. We will mobilise together. And no one will be left behind. Thank you.

Meetings Friday 30 September 2022

● Eurogroup   30/09/2022 17:49 | MEETING | Agenda highlights - Eurogroup, 3 October 2022   The Eurogroup will discuss the macroeconomic situation in the euro area. Ministers will take stock of the implementation of euro area priorities in the recovery and resilience plans and exchange views on the digital euro ecosystem.

Eurogroup
Eurogroup, 3 October 2022

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3 October 202213:30 Arrivals
18:30 Press conference

Estimated schedule
Agenda highlights


Macroeconomic situation in the euro area

Finance ministers will discuss the macroeconomic situation in the euro area and in particular the fiscal policy response to high energy prices and inflationary pressures, following up on discussions at the Eurogroup meeting in Prague. The Secretary-General of the OECD, Mathias Cormann, will join the discussion.
Euro area recommendations

The Eurogroup will take stock of the implementation of euro area priorities in the recovery and resilience plans based on the analysis from the Commission. This will also allow an exchange of views on the economic challenges and policy priorities for the euro area in the wake of recent developments.A recovery plan for Europe (background information)
Issues note - euro area priorities in the recovery and resilience plans
Preparation of international meetings

Ministers will take stock of global economic issues, including – as is customary – exchange rate developments, in view of the upcoming annual meetings of the World Bank Group and the International Monetary Fund.

The Eurogroup discusses exchange rate developments at regular intervals, in particular ahead of international meetings.
Digital euro – business models of public and private participants in the digital euro ecosystem

Based on input from the ECB and the Commission, ministers will discuss the role of public and private participants in the digital euro ecosystem. In this context, they will be invited to express views on the role of supervised intermediaries and the Eurosystem throughout the payments process, and on possible distribution models that would ensure the digital euro has a pan-European reach whilst also fostering innovation.

This discussion follows the work plan on the digital euro, agreed by the Eurogroup at its meeting on 12 July 2021 and recalled in its statement adopted in February 2022.Digital finance (background information)


Meeting information

Luxembourg
3 October 2022
Preparatory documentsDraft agenda, Eurogroup
Draft annotated agenda, Eurogroup
Issues note - Euro area priorities in the Recovery and Resilience plans

Press material Friday 30 September 2022

● General Secretariat   30/09/2022 17:48 | Press release | Forward look: 3 - 16 October 2022   Overview of the main topics and events at the Council of EU and European Council for the coming fortnight. Economic and Financial Affairs Council, 4 October 2022 The Council will discuss the economic situation and high energy prices. It will aim to agree its position on the REPowerEU proposal. It will also approve conclusions on climate finance ahead of COP 27. Read more Informal meeting of heads of state or government, Prague, 7 October 2022 EU leaders will mainly focus on the following three topics: Ukraine, energy and economy. Read more Justice and Home Affairs Council, 13-14 October 2022 Ministers of justice will be updated on the fight against impunity in Ukraine. They will exchange views on judicial training and its impact on access to justice, as well as on upholding fundamental rights in times of crises. Ministers will assess progress on the draft environmental crime directive and take stock of the work of the European Public Prosecutor's Office. EU home affairs ministers will exchange views on the overall state of the Schengen area, with a particular focus on the management of external borders. They will discuss the situation of refugees in the EU, as well as the internal security implications in the context of the war in Ukraine. The Presidency will provide a state of play on the files regarding asylum and migration. Over lunch, ministers will discuss recent evolutions in the Western Balkans migratory route. Read more Other events Eurogroup, 3 October 2022 EU-Israel Association Council, 3 October 2022 Meeting of the European Political Community, 6 October 2022 Informal meeting of energy ministers, 11-12 October 2022 Informal meeting of employment and social affairs ministers, 12-13 October 2022 Indicative calendar of meetings under the Czech presidency (1 July - 31 December 2022)

Press material Friday 30 September 2022

● Council of the EU   30/09/2022 17:10 | Press release | Council agrees on emergency measures to reduce energy prices   EU energy ministers today reached a political agreement on a proposal for a Council Regulation to address high energy prices. The regulation introduces common measures to reduce electricity demand and to collect and redistribute the energy sector's surplus revenues to final customers. "We live in exceptional times and are working in an exceptionally fast, coordinated and solidary manner to form a united front against Russia’s continuous weaponizing of energy supplies. The agreement reached today will bring relief to European citizens and companies. Member states will flatten the curve of electricity demand during peak hours, which will have a direct positive effect on prices. Member states will redistribute surplus profits from the energy sector to those who are struggling to pay their bills." Jozef Síkela, Czech minister of industry and trade Electricity demand reduction The Council agreed to a voluntary overall reduction target of 10% of gross electricity consumption and a mandatory reduction target of 5% of the electricity consumption in peak hours. Member states will identify 10 % of their peak hours between 1 December 2022 and 31 March 2023 during which they will reduce the demand. Member states will be free to choose the appropriate measures to reduce consumption for both targets in this period. Cap on market revenues for inframarginals The Council agreed to cap the market revenues at 180 euros/MWh for electricity generators, including intermediaries, that use so-called inframarginal technologies to produce electricity, such as renewables, nuclear and lignite. Such operators have made unexpectedly large financial gains over the past months, without their operational costs increasing. This is because of the role of coal and gas as price-setting marginal sources that currently inflate the final price of electricity. The level of the cap is designed to preserve the profitability of the operators and avoid hindering investments in renewable energies. Member states agreed to use measures of their choice to collect and redirect the surplus revenues towards supporting and protecting final electricity customers. Member states introduced some flexibilities to reflect their national circumstances and the measures in place at national level. These include the possibility to set a higher revenue cap, use measures that further limit market revenues, differentiate between technologies, and to apply limits to market revenues of other actors including traders, among other things. In situations where a member state’s net import dependence is equal or higher than 100%, they shall conclude an agreement by 1 December 2022 to share the surplus revenues adequately with the exporting member state. Other member states are also invited to conclude such agreements. Solidarity levy for fossil fuel sector Member states agreed to set a mandatory temporary solidarity contribution on the profits of businesses active in the crude petroleum, natural gas, coal, and refinery sectors. The solidarity contribution would be calculated on taxable profits, as determined under national tax rules in the fiscal year starting in 2022 and/or in 2023, which are above a 20% increase of the average yearly taxable profits since 2018. The solidarity contribution will apply in addition to regular taxes and levies applicable in member states. Member states can keep national measures that are equivalent to the solidarity levy provided they are compatible with the objectives of the regulation and generate at least comparable proceeds. Member states will use proceeds from the solidarity contribution to provide financial support to households and companies and to mitigate the effects of high retail electricity prices. Retail measures for SMEs The Council agreed that member states may temporarily set a price for the supply of electricity to small and medium-sized enterprises to further support SMEs struggling with high energy prices. Member states also agreed they may exceptionally and temporarily set a price for the supply of electricity which is below cost. Application The measures are temporary and extraordinary in nature. They will apply from 1 December 2022 to 31 December 2023. The reduction targets of energy consumption shall apply until 31 March 2023. The mandatory cap on market revenues shall apply until 30 June 2023. Member states introduced specific exemptions for Cyprus and Malta. Background and next steps The regulation will be formally adopted by written procedure in early October. It will then be published in the EU’s Official Journal and enter into force on the next day. The EU has experienced an unusual increase in energy prices that has been further aggravated by the military aggression by Russia against Ukraine. EU countries are united and closely coordinating their efforts in a spirit of solidarity to secure the EU’s energy supply and mitigate the impact of high energy prices on consumers and the economy. In this context, following up on political guidance given by the Council in the Extraordinary Energy Council on 9 September, the Commission presented, on 14 September 2022, a proposal for a Council Regulation on an emergency intervention to address high energy prices. The proposal complements existing EU initiatives and legislation, adopted in the last couple of months to keep energy affordable and ensure the EU’s energy security of supply, such as the gas demand reduction regulation, the gas storage regulation, the creation of an EU energy platform and outreach initiatives for the diversification of supply sources. The measures also complement initiatives proposed under REPowerEU in May 2022. Regulation on an emergency intervention to address high energy prices Energy prices and security of supply (background information) EU response to Ukraine invasion (background information)

Meetings Friday 30 September 2022

● Council of the EU   30/09/2022 17:05 | MEETING | Main results - Extraordinary Transport, Telecommunications and Energy Council (Energy), 30 September 2022   EU energy ministers agreed on a regulation to address high energy prices and discussed further measures to mitigate high gas prices.

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Council of the EU
Extraordinary Transport, Telecommunications and Energy Council (Energy), 30 September 2022

Infographic - Energy crisis: Three EU-coordinated measures to cut down billsSee full infographic
Main results

EU energy ministers agreed on a regulation to address high energy prices and discussed further measures to mitigate high gas prices.
Regulation to address high electricity prices

EU energy ministers reached a political agreement on a regulation on an emergency intervention to address high electricity prices. The regulation will be formally adopted by written procedure in the coming days.



We live in exceptional times and are working in an exceptionally fast, coordinated and solidary manner to form a united front against Russia’s continuous weaponizing of energy supplies. The agreement reached today will bring relief to European citizens and companies. Member states will flatten the curve of electricity demand during peak hours, which will have a direct positive effect on prices. Member states will redistribute surplus profits from the energy sector to those who are struggling to pay their bills.Jozef Síkela, Czech minister of industry and trade

The regulation includes measures to reduce electricity demand during peak hours in order to decrease electricity prices for consumers. It introduces measures to collect surplus revenues from the production of electricity and a solidarity contribution from the fossil fuel sectors’ surplus profits, which will be used to alleviate the impact of high prices on final customers and further protect electricity retail customers.Council agrees on emergency measures to reduce energy prices (press release, 30 September 2022)
Policy options to mitigate high gas prices

Ministers held an exchange of views on further policy options to mitigate high gas prices. Member states recalled the unity and solidarity in their common efforts to secure the EU’s energy supply and mitigate the impact of high energy prices on consumers and the economy.

Ministers reiterated their call for a rapid and coordinated EU-wide response to address the high gas prices.


Today, we have approved a very good set of measures that will allow us to mitigate the consequences of the unprecedented situation on the energy markets. However, we also need to put maximum effort into additional measures to ensure that we also address the causes of the current situation. The Presidency is prepared to continue work tirelessly on all required solutions.Jozef Síkela, Czech minister of industry and trade

Following up on political guidance given by the Council in the Extraordinary Energy Council on 9 September, the Commission is preparing possible actions for coordinated emergency gas market interventions, including intervening on gas prices and strengthening solidarity among member states.

Ministers called on the Commission to present further measures including possible legislative proposals as a matter of utmost urgency.

Ministers expressed the need for an EU response that would limit Russia’s influence on the European gas market, diversify suppliers and routes, mitigate excessive price volatility and reduce the price paid by European customers, while continuing the energy transition.

The Council expressed its readiness to follow-up on any initiatives with determination.
Gas leaks in Nord Stream pipelines

Under any other business Denmark, supported by Germany and Sweden, informed ministers on recent gas leaks from the Nord Stream 1 and 2 pipelines near the island of Bornholm in Denmark.

Member states recalled the declaration by the High Representative Joseph Borrell on behalf of the European Union on leaks from the Nord Stream gas pipelines and underlined that there is no immediate impact on the EU’s security of supply, neither for gas nor for electricity.Declaration by the High Representative Joseph Borrell on behalf of the European Union on leaks in the Nord Stream gas pipelinesEnergy prices and security of supply (background information)
Impact of Russia's invasion of Ukraine on the markets: EU response (background information)
EU response to Ukraine invasion (background information)


Meeting information

30 September 2022
09:30
Preparatory documentsProvisional agenda
Background brief
Outcome documentsList of participants