The European Commission, led by Ursula von der Leyen, proposes reducing electricity taxes, reviewing the carbon emissions market, and avoiding premature nuclear plant closures to lower energy prices amid the Middle East war. These measures address surging oil prices due to the Strait of Hormuz closure, costing 6 billion euros since February 28. The EU meanwhile rejects military involvement in the conflict despite pressure from Donald Trump.
European Commission President Ursula von der Leyen sent a letter to EU leaders proposing swift measures to curb high energy prices stemming from the Middle East conflict, started with bombings in Iran on February 28. The Strait of Hormuz closure has spiked crude oil prices, costing European businesses and families 6 billion euros, per the Commission. Von der Leyen stresses 'avoiding the premature dismantling of assets, like existing nuclear plants, which can generate reliable, low-cost electricity with low emissions' and equates nuclear to renewables, calling their early shutdown a 'strategic error' in countries like Germany and Spain, which plans closures by 2030 amid disputes with utilities and the PP. Short-term proposals include cutting electricity taxes—up to 15 times higher than gas—, gas caps for power generation, more state aid flexibility, and stabilizing carbon emissions trading scheme (ETS) prices, which has saved 100 billion cubic meters of gas. Energy Commissioner Dan Jorgensen said after ministers' meeting they are addressing bill components: energy costs, networks, taxes, and carbon, with responses by weekend as in 2022 Ukraine crisis. Brussels rules out price mechanism reform to favor renewables and cross-border grids. Meanwhile, the EU rejects Trump's pressure for military intervention in Hormuz: 'It is not the EU's war,' said Kaja Kallas; Germany and Spain push for diplomacy.
