In Europe, the price of gas at TTF rose to €41.5/MWh, a 17% increase since the Israel-Iran conflict started.
Otherwise, Europe has in effect been left on the sidelines in the latest Mideast conflict.
European leaders had been pushing for diplomacy, but there was no unified approach. The foreign ministers of Britain, France and Germany along with the European Union foreign policy chief, Kaja Kallas, met in Geneva with Iran’s foreign minister to try to de-escalate the conflict.
The Iran crisis vividly demonstrates how much Donald Trump has neutered European geopolitical influence over the past decade, even in areas where its interests might align with those of the US.
“The level of confusion in Europe over Israel’s attack on Iran is staggering. It’s so sad to see the total inability of European leaders to think with their own heads, rather than act as derivatives of the US, in the Middle East,” the US president.
Christine Lagarde said that for the euro to reach its full potential, Europe must strengthen three foundational pillars: geopolitical credibility, economic resilience and legal and institutional integrity. This was loud and clear.
The IMF said the case for completing and deepening the EU’s single market has become more compelling as external challenges multiply.
The European Commission has set up a task force to address high electricity prices and market distortions, caused by the ‘target pricing model’.
Given long periods of low wind speeds, low visibility and droughts due to climate change, the EU’s gas needs are for the longer-term.
Europe’s ambition to develop cheap, clean energy has recently received a harsh reality check, as power failures and a string of cancelled renewables projects made it clear that the road to inexpensive power will carry a very high price tag. In grid investment alone, the EU requires $1.4 trillion by 2040.
In another serious shift away from Europe’s green policies, EU member states are considering softening the Union’s methane emissions law on gas imports in order to accommodate imports of US LNG.
Dr Charles Ellinas, Councilor, Atlantic Council
