#EUFridays by JEF Hungary #32

EU Leaders Pledge Support for Ukraine’s Post-War Reconstruction

Ukraine’s post-war reconstruction will be a “challenge for generations”, said Olaf Scholz at a conference in the country, that is still at war with Russia. The German chancellor, who co-hosted the event the expert conference on rebuilding Ukraine, urged that the reconstruction needs to start as soon as possible.

In her opening speech, Ursula von Der Leyen, the president of the European Commission said: “We want to discuss the reconstruction of Ukraine today”. She also added: "Thousands of destroyed houses, several hundred schools turned to rubble. Countless bridges, roads, power stations, railway infrastructure and industry bombed. For Ukrainians, these are not just statistics. This is their everyday experience”.

Scholz labeled the financial aid to Ukraine’s reconstruction as a “21st century Marshall-plan” also comparing its stakes to those of financially supporting Western Europe after the end of the Second World War. "We know that no two countries' histories are the same, but from our own historical experience, we also know that reconstruction is always possible and that it is never too soon to tackle this task”, he added.

According to estimates by the World Bank, the sum of war damages can be as high as €350 billion - equivalent to more than twice the Ukrainian GDP in 2021. Ukrainian President Volodymyr Zelenskyy also addressed the conference virtually, and asked for funds to cover the country’s 2022 budget worth $38 billion. Ukrainian Prime Minister Denys Smyhal also stressed, that the country also needs immediate financial support to conduct rapid repairs on essential infrastructure to avoid a potential humanitarian disaster during the winter.

Last week, Von Der Leyen also announced that the EU aims to contribute €1.5 billion to Ukraine on a monthly basis, for a total of €18 billion in 2023.

Via: Euronews

EU Member States Still Split Over Question on Gas Price Cap

The 27 EU member states are still split by different views over the unparalleled proposal aiming to limit daily transaction prices on the gas market. The cap will apply to main European trading hubs, such as the Dutch Title Transfer Facility (TTF) acting as an emergency ceiling to prevent speculative trading and extreme price volatility.

One of the main clashing points is the actual cap itself. "Here, as you can imagine, we have rather different views on the mechanism," said Czech Energy Minister Jozef Síkela at the end of a meeting of energy ministers in Luxembourg. Many member states, namely Germany, Austria, Hungary and the Netherlands oppose the cap altogether, while Italy, Poland, Belgium and Greece advocates for an even broader market intervention. "The main question is how to make sure that capping will still allow us to buy the gas we need on the market," Síkela said, whose country currently holds the rotating presidency of the EU Council.

Kadri Simson, European Commissioner for energy, said the TTF limit could be used "immediately" once countries endorse the proposal. She added: "As we develop this short-term tool, we must ensure security of supply and avoid an increase in gas consumption”.

The gas price cap proposal is a part of new package of extraordinary measures to address the widespread energy crisis, which also features joint purchases of gas supplies and automatic solidarity rules in case of shortages. The package was discussed by EU leaders during a summit in Brussels last week and then sent back to energy ministers to debate the technical details. Síkela said ministers "widely supported" the idea of joint procurement and "welcomed" the solidarity rules but they expressed concerns regarding the price cap. "We have to introduce measures that will please, if possible, all member states," he said.

During the Luxembourg meeting, gas prices continued to decrease, falling below €100/mWh for the first time since June. Concerning this rapid decline in prices, Síkela said "the game is not over" as there is still uncertainty over the upcoming winter season. "Because the game is not over we need to have an emergency measure, regardless of where we are in the curve” he added.

The package is expected to be approved during an extraordinary meeting on the 24th of November.

Via: Euronews