Speech by President von der Leyen at the European Parliament plenary debate in preparation of the European Council meeting of 19-20 March 2026 and on the US-Israel military operations against the Iranian regime, its consequences and the need to suppo

“Check against delivery”

 

Madam President, dear Roberta,

Deputy Minister Raouna, dear Marilena,

Honourable Members,

Let me start with the ongoing situation in the Middle East. For decades, Ayatollah Khamenei ruled through repression, violence and fear. Under his rule, Iranians lived under a system that silenced dissent and crushed basic freedoms. Earlier this year, hundreds of thousands of young Iranians took to the streets to demand a better future.

They were met with brutal repression. More than 17,000 were killed as the regime clung to power. But the crimes of this regime go back decades. It imprisoned and tortured its own citizens. It sponsored terrorism across the region and even on European soil. And it provided critical support to Russia's brutal war against Ukraine. There should be no tears shed for such a regime. Many Iranians have celebrated Khamenei's downfall. They hope that this moment can open a path towards a free Iran. That is what the Iranian people deserve – freedom, dignity, and the right to decide their own future. But allow me to make one important point. Seeing the world as it is, in no way diminishes our determination to fight for the world we want. The European Union was founded as a peace project. Our unwavering commitment to the pursuit of peace, to the principles of the UN Charter and to international law are as central today as they were at our creation. And we will always uphold these principles.

Honourable Members,

Europe's first responsibility is to protect our citizens and prepare for the impacts of this conflict. And Deputy Minister Raouna, dear Marilena, I want to be very clear, all of us here stand in full solidarity with Cyprus. Your security is our security.

Honourable Members,

We are already seeing the impact of the situation in the Middle East on energy. Thanks to the actions we have taken in recent years, Europe is now far less exposed to fossil fuel imports. Our diversification efforts are paying off. But this does not mean that we are immune to price shocks. Energy markets are global. Disruptions in the Gulf quickly affect prices everywhere. We are already seeing price spikes. This is why G7 Energy Ministers met yesterday – to be followed by a video call by G7 leaders.

But no matter what we do in terms of measures, as long as we import a significant share of fossil fuels from unstable regions, we are vulnerable and dependent. And this energy always comes at a cost. Just to give you an example: since the beginning of the conflict, gas prices have risen by 50% and oil prices by 27%. If you translate that into euros – 10 days of war have already cost European taxpayers an additional EUR 3 billion in fossil fuels imports. That is the price of our dependency.

Honourable Members,

The fact is we have energy sources that are homegrown – renewables and nuclear. Their prices have remained the same over the last 10 days. Yet in the current crisis, some argue that we should abandon our long-term strategy and even go back to Russian fossil fuels. This would be a strategic blunder. It would make us more dependent, more vulnerable and weaker. So, we should stay the course on our long-term strategy. While we can be more pragmatic and smarter in its implementation – but the direction of travel is the right one.

Where do we stand now? Households and companies face pressure today. So, we must deliver relief now. And we must comprehensively look at how we can reduce people's energy bills. Not only looking at one component, but rather at all four components of the price. The cost of the energy itself, which makes up more than 56% of the bill. Grid charges 18%. Taxes and levies 15%. And carbon costs, on average around 11%. Of course, these are averages and they differ depending on the energy mix of the respective Member State.

First, on the cost of the energy, on the market design. Overall, the current market design has delivered. And there is overall support for the current system. But it is crucial that we reduce the cost impact, when gas sets the electricity price. We are preparing different options: better use of Purchase Power Agreements and contracts for difference; state aid measures; exploring subsidising or capping the gas price.

Second, on the grid charges, a delicate matter. On the one hand, these charges are needed to invest in more and smarter grids. On the other hand, there is room to increase the productivity of grids, so that less renewables are wasted. Let me give one figure: last year, we installed more than 80 gigawatts of renewables in the EU – a record! But six times more renewable energy does not get access to the grids. With electricity demand set to increase, this is simply not sustainable.

Third, on taxes and levies, this is of course a national competence. But it is also true, that some Member States are taxing electricity much higher than gas. To give you an example: one Member State applies zero percent taxes on retail electricity, while some others apply over 16%. There is room for action.

Fourth, concerning ETS, allow me to give you one figure: without ETS we would now consume 100 bcm more gas – again, making us more vulnerable and more dependent. So, we need ETS, but we need to modernise it. And I look forward to continuing this debate with you here in the European Parliament.

Honourable Members,

Let me finish on another aspect of competitiveness. It is one thing that we actually agree on components of competitiveness. It is another that we deliver on the action and legislation. And it is why we will soon present a Roadmap ‘One Europe, One Market'. The roadmap will set out the key legislative measures we must adopt, with clear timelines to deliver them by the end of 2027. Only what gets measured gets done. So, the roadmap contains various packages of legislation: SIU, energy, quality jobs, AI Gigafactories, 28th Regime – you name it. My point is that we ask all three institutions – Parliament, Council and Commission – to sign up for it. We know the challenges. We know what must be done. Now we must deliver for European citizens.  

Thank you. And long live Europe.