EU capitals 'should drive response' to the Iran energy shock, Polish official tells Euronews

In an interrogation with Euronews’ flagship greeting programme Europe Today, Polish vigor caput Wojciech Wrochna said EU capitals should beryllium driving the effect to the vigor situation arsenic the European Commission tries to support a unified approach.

“We request a coordinated effect to the crisis, but the capitals should beryllium driving the measures,” Wrochna said. Until now, the EU has looked astatine contingency measures astatine nationalist level, though fiscal capableness for assistance and subsidies greatly crossed subordinate states, and broader measures presented by Brussels.

The EU’s vigor main Dan Jørgensen warned subordinate states this week that prices could stay elevated adjacent if a bid woody is reached successful Iran, urging governments to hole for a “potentially prolonged disruption”.

EU vigor ministers met via videoconference connected Tuesday to sermon imaginable steps to curb rising vigor prices, but nary associated effect emerged.

According to Jørgensen, countries whitethorn see measures to curb demand, gathering up connected a acceptable of recommendations from the International Energy Agency which called for substance rationing, distant moving and adjacent car-free Sundays — a argumentation past seen during the 1970s vigor crisis. Oil and state prices person risen by 70% and 50% respectively successful the EU.

Jørgensen acknowledged the “different circumstances” crossed the bloc, signalling that each subordinate authorities volition yet find its ain attack to the “severe situation", though helium warned against subordinate outbidding and competing with each other.

Poland's Wrochna called connected the European Commission to amusement “flexibility”, noting that ministers had enactment guardant “different approaches” including Warsaw.

Poland introduced Tuesday a terms headdress connected petrol stations to stabilise prices astatine the pump and forestall excessive margins.

The determination is portion of a broader package, which besides included a simplification successful VAT connected substance from 23% to 8%, alongside cuts to excise duties and different levies to the EU minimum.

Warsaw says the measures volition supply contiguous and disposable alleviation for drivers, portion curbing speculative terms increases. It has warned substance stations against exploiting the crisis, signalling that further regulatory enactment could travel if necessary.

A windfall taxation connected substance companies could beryllium considered if excessive profits are identified.

Wrochna stressed that responses should stay country-specific. Proposals specified arsenic reducing car usage whitethorn beryllium easier to instrumentality successful countries with beardown cycling cultures, but little feasible successful cities similar Warsaw, wherever upwind conditions bounds specified alternatives.

Poland is not unsocial successful taking action. A week ago, Slovenia adopted a substance rationing policy, becoming the archetypal EU state to instrumentality specified a measure.

Meanwhile, Spain reduced VAT connected fuels from 21% to 10%. Austria has besides chopped substance taxes and introduced limits connected retailer nett margins, an attack akin to Germany’s proposal, which includes restricting substance terms increases to erstwhile per day.

The European Commission is expected to contiguous a "toolbox" of measures soon.