EU leaders to grapple with soaring fuel prices[fr] 

The meeting of EU leaders in Brussels today and tomorrow (19-20 June) will debate the way forward in tackling the current price crisis, which is affecting citizens and businesses and driving inflation. On the agenda are a number of measures proposed by the Commission to ease the short and long-term effects of fuel price rises on the poorest sectors of the EU population (EurActiv 12/06/08). 

France's proposals to give petrol subsidies to truckers and farmers are likely to spark lively debate as such measures are supported by some member states and firmly rejected by others. Concrete measures to address the current crisis are expected by the end of this year.

As thousands of truck and taxi drivers and farmers gathered in a mass protest against soaring oil prices in Brussels on 18 June, several MEPs argued that the Commission has so far ignored the role of speculation as part of the cause of soaring prices. The Greens also proposed coordinated national taxes on energy speculators to help the poorest segments of the population and fund energy efficiency measures. 

In a debate in Parliament, EU Energy Commissioner Andrís Piebalgs downplayed the impact of price speculation, saying it is impossible for companies to keep large oil stocks and that no European company was profiting from the situation without investing. According to Piebalgs, the right solution is to make energy efficiency the top priority together with boosting renewable and alternative energy sources, such as nuclear power. His view was supported by the Slovenian EU Affairs Minister Janez Lenarcic.

An analysis , published on 18 June by the European Federation for Transport and Environment (T&E), also highlights the importance of energy efficiency in the transport sector. The analysis shows that the EU is spending €1 billion a day, equivalent of €750 per EU citizen and 3% of the blocks GDP, on oil imports "as leaders backtrack on efficient cars". This is "four times more than in 2003 and smashing all previous records," states the analysis.

T&E argues that the economic benefits of fuel-efficient cars are underestimated. Given that transport is responsible for two thirds of EU oil consumption and "there is an impressive technological potential to make them [cars] more fuel efficient," the federation concludes that the best measure the EU can take to reduce oil import costs is to introduce mandatory fuel efficiency targets.