Speech by President von der Leyen at the European Parliament plenary debate on the EU strategy in response to the ongoing Middle East crisis, its implications on energy prices and the availability of fertilisers

“Check against delivery”

Thank you, Madam President, dear Roberta,

Deputy Minister Raouna, dear Marilena,

Honourable Members,

The informal EUCO started with good news, for Europe and Ukraine. In spring, we said we would deliver the EUR 90 billion loan – one way or the other. Now, we made good on this promise. We will disburse the first tranche of EUR 45 billion for 2026 still this quarter. One-third is for budgetary needs, two-thirds go to Ukraine's defence. The first defence package will be on drones from Ukraine, for Ukraine – worth some EUR 6 billion. Our message is clear: we will continue our support to the brave Ukrainian people and their armed forces. While Russia doubles down on its aggression, Europe doubles down on our support to Ukraine. That day we also adopted the 20th sanctions package. And yes, the sanctions have a biting effect on the Russian economy. With inflation increasing and interest rates skyrocketing, the consequences of Russia's war of choice are being paid for out of people's pockets. So much so that the Kremlin responds in its usual way, by restricting the internet and free communication. So much so that Russians feel that they live behind an Iron Curtain once again, a digital Iron Curtain. But if history has one lesson, it is that all walls eventually fall.

Honourable Members,

It has been exactly two months since the new war in the Middle East began, and we are finally witnessing a lull after weeks of violence. We all want the ceasefire in Iran and in Lebanon to hold, with the ultimate goal to re-establish peace and stability through diplomatic means. We were joined in Cyprus by leaders from Egypt, Lebanon, Syria, Jordan and the Secretary-General of the Gulf Cooperation Council. This was an opportunity to reiterate our solidarity with partners. Our shared goal is now to see a lasting end to the war. This includes restoring full and permanent freedom of navigation in the Strait of Hormuz without tolls. It is equally clear that any peace agreement will have to address Iran's nuclear and ballistic missile programme. But there is also a harsh reality we all need to face: the consequences of this conflict may echo for months or even years to come. This is why energy was on top of the informal EUCO's agenda. This is the second major energy crisis in the short span of four years. The lesson should be clear for all: in a turbulent world like ours, we simply cannot be overdependent on imported energy. Let me give you two figures: in just 60 days of conflict, our bill for fossil fuel imports has increased by over EUR 27 billion, without a single molecule of additional energy. So the way forward is obvious, we must reduce our overdependency on imported fossil fuels and boost our home-grown, affordable, clean energy supply. From renewables to nuclear, in full respect of technology neutrality.

Already today, Member States with more low-carbon sources in their energy mix are less impacted by the crisis. In a country like Sweden, when the gas price increases by EUR 1 per MWh, the electricity bill only increases by EUR 0.04 per MWh, because almost all of Sweden's electricity comes from renewables and nuclear. This is how we insulate ourselves from future shocks, and this is the path to an independent Europe.

Honourable Members,

Every Member State has a different energy mix. Therefore, a blanket solution to address the current crisis would simply not work. This is why, last week, we presented a toolbox of measures that can be combined differently in different parts of the Union. Let me focus on three sets of measures. First, increased coordination at the European level. At the start of the previous energy crisis, there was a rush to gas markets, and this contributed to driving prices up. We were competing against ourselves. That is why we stepped up European coordination – for instance, with common gas procurement. This time, we are taking this approach one step further. We propose stronger coordination, not only in filling national gas storage, but also when it comes to fuel reserves – especially jet fuel and diesel, where markets are tightening. We can be so much more effective if we coordinate the release of oil stocks and make sure that refineries can step up production all across our Union. Together, we have massive market power and industrial might, let us put it at the service of all Europeans.

Second, we have to protect consumers and businesses. There is a lesson we learnt in the last crisis. Measures should be targeted to the most vulnerable households and industries only – and avoid increasing the demand for gas and oil. Let me give you a figure: during the last crisis, only a quarter of the emergency support was targeted to vulnerable households and firms. More than EUR 350 billion were spent on untargeted measures. This had a huge impact on Member States' finances, and it also undermined the measures to protect those most in need. Let us not make the same mistake again and focus our support where it matters most.

Third, we must reduce energy demand by modernising systemic energy use. In the short term, we can do this through a combination of energy efficiency, electrification and faster deployment of digital technologies. But we should also keep in mind that, overall, we will need energy in abundance – especially because of a rapid scale up of data centres and AI. Since the last crisis, we have already made great progress. In 2022, gas determined our electricity prices for 70% of the time. Today, this is down to 30%. That is why, this time, we have avoided the huge price spikes of the previous crisis. But electricity still represents less than a quarter of our final energy consumption. This is much lower than the US or China, and it has to and will change. A continent like ours – with limited fossil fuel resources – should lead the world in electrification. This is why, last December, we proposed the Grids Package. Its goal is to make our energy infrastructure fit for the electrification age. And I am glad that last week, in Cyprus, the European Parliament and the Council agreed to speed up the negotiations. As a next step, we will put forward our Electrification Action Plan by the summer, with an ambitious electrification target. In the current European budget, we have set aside almost EUR 300 billion for energy, EUR 95 billion are still available. Let us use this to make the switch to electricity – not just in transport, but also in industry and heating. This is not only a matter of affordability and competitiveness, but also of economic security. Thus, speaking of European independence, this is the moment to electrify Europe.

Finally, on the next MFF. The next EU budget is central to our competitiveness agenda. It can de-risk investment and crowd in private capital, it can fund strategic priorities at real European scale, and it can support reforms that make Europe a better place to invest. But we must be lucid about the budgetary equation. From 2028 onwards, the EU will start repaying NextGenerationEU; we need to invest more in our new priorities: European competitiveness, defence, security, etcetera; we want to sustain funding for EU's long-standing priorities: CAP, Cohesion policy; and we want to keep national contributions in check. If this is the case, the budgetary equation is clear: new own resources are indispensable. Without them, the choice is stark: higher national contributions or lower spending capacity. In other words, less Europe exactly where Europe needs to do more. This is why the Commission proposed a comprehensive package of new own resources. A package that is diversified, linked to Union policies, and capable of generating stable revenues over time. This is the only credible way to match Europe's priorities with Europe's means.

Thank you, and long live Europe.