Europe's energy shift and defence plans face hurdles
The primary response to lowering energy prices is a greater transition to low-emission energy, such as nuclear and renewable energy, stated European Commission President Ursula von der Leyen after the summit in Brussels. She emphasized that prices are driven by fossil fuels that the EU imports.
One of the main topics of the summit was improving the competitiveness of the European economy.
Von der Leyen, summarizing the summit, said that in this context, three cross-cutting topics were addressed. The first was energy, the second was the simplification of regulations, and the third was building a savings and investment union.
She stated she believed it was a very engaging discussion, as it became evident, when examining energy prices, that the key to reducing them is a more substantial transition to low-emission energy, such as nuclear and renewable sources, since the fossil fuels we import are the major drivers of price increases.
The European Commission is "technologically neutral" in its energy policy, meaning that each EU country decides where to source its energy. Nuclear energy has been the most controversial source due to a strong divide among EU countries – the group supporting nuclear energy is led by France, while its opponents are led by Germany.
In the "Clean Industrial Plan," a new EC strategy for the development of European industry, which von der Leyen presented to leaders on Thursday, there is a proposal to support the construction of small modular reactors, known as SMRs.
Europe will arm itself significantly
European Union leaders also discussed defence on Thursday evening. They called for the rapid implementation of a plan to re-arm the Community over the next five years. The starting point for this discussion was the so-called white paper on defence, which the European Commission presented on Wednesday, specifying the plan for Europe’s re-armament proposed at the previous EU summit on March 6 by von der Leyen.
One of its pillars is loans of up to 150 billion euros (232 billion Canadian dollars), which member countries and Ukraine (as well as, for example, Switzerland and Norway) will be able to apply for. Another element of the plan is the initiation of the so-called escape clause, which allows member states to increase defence spending without triggering the excessive deficit procedure from Brussels.
Von der Leyen explained during a post-summit conference that the union's aim is to spend more collectively, spend more effectively, and spend in a distinctly European manner.
She emphasized that Ukraine and its defence industry will be able to participate in joint orders within the loan program. She added that the EU will also allow partner countries to join. Von der Leyen stressed that ultimately, EU will unleash the power of the EU budget, permitting those who voluntarily wish to make their cohesion funds more adaptable for defence investments.
Hungarian veto on aid for Ukraine
The conclusions adopted included a statement that a stronger European Union in security and defence will contribute to increasing global and transatlantic security and will complement NATO, which remains the foundation of collective defence for Alliance member countries.
On Thursday, for the second time at the EU summit, the provisions regarding support for Ukraine were not adopted unanimously but by 26 leaders. Hungary vetoed this issue. The conclusions included a reference to the initiative for further military support for Ukraine.
European Council President Antonio Costa was asked about Budapest’s opposition at a joint conference with von der Leyen. He responded that Hungary has a different perspective than the other 26 countries regarding how to support Ukraine in achieving peace. Costa also added that EU must respect these differences, but cannot be obstructed because Hungary's view diverges from the rest. He added that countries must continue to move forward, believing that it is exactly what they are doing.
