The European Commission and European Council have been intervening massively in the EU’s energy market for almost two years – without a proper legislative procedure, without involving the European Parliament and disregarding the Member States’ reservations of sovereignty, writes Ulrike Reisner.
The EU Commission, together with the European Council, has been intervening massively in the European energy market – without proper legislative procedure, without involving the European Parliament and with disregard for the Member States’ sovereignty-related reservations. A highly problematic tactic is being used here, namely the misuse of emergency clauses such as Art. 122 TFEU. This enables the Council to take measures by reaching a qualified majority on a proposal from the EC. What was intended as an emergency mechanism is becoming a permanent solution and is eroding the principles of the rule of law and democratic accountability in the Union.
On November 20, 2023, the European Commission adopted an amendment to the Temporary Framework for State aid measures to combat the ongoing energy crisis. This amendment extends a limited number of sections of the Temporary Framework to tackle the crisis within six months.
The EU Commission is therefore authorising state emergency measures in order to suppress high energy costs until summer 2024. This adjustment to the timetable for the expiry of some of the provisions of the Temporary Framework for Crisis Management and Governance of Change gives Member States the possibility to maintain their support schemes for the heating season this winter and to help businesses that continue to be affected by the economic disruption caused by the developments in Ukraine. Didier Reynders, EU Commissioner for Competition Policy, said in a statement:
The Temporary Framework for crisis management and managing change has proven to be a crucial tool to enable Member States to provide much-needed support to businesses in the face of this exceptional economic shock. The framework demonstrates that the Commission is willing and able to fully utilise the flexibility available under state aid rules when needed.
Member States can therefore continue to grant aid for “crisis management,” especially in the energy sector (e.g. measures to reduce demand for electricity, aid to compensate for higher energy prices). The Commission reiterates that Russian, Belarusian and Iranian entities subject to sanctions for actions undermining or jeopardising the territorial integrity, sovereignty and independence of Ukraine are excluded from the scope of these measures.
Intervention in the energy market
The Commission assures that these measures should help to stabilise the situation on the energy markets (particularly regarding gas and average electricity prices). However, the ongoing military conflict in Ukraine continues to harbour risks and the vulnerability of the energy markets has not yet been overcome.
This Temporary Credit Framework was adopted by the Member States on March 23, 2022 and has been amended and adapted several times since then. The following provisions in the area of emergency measures are of particular importance for the energy sector: