European Unions Demand Stronger Protection Against Energy Crisis, Call Measures 'Half-Hearted'

The European Trade Union Confederation (ETUC) has voiced strong criticism, deeming the European Commission's recent proposals to shield Europeans from the escalating energy crisis as merely 'half-hearted.' In a statement, the ETUC highlighted that numerous EU member states will struggle to meet the Commission's demands for addressing the crisis, particularly due to fiscal constraints.

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The scope of the measures the Commission has proposed does not correspond to the crisis facing workers or industries. Member states must fill the gap in these proposals and provide guarantees for workers' jobs and incomes.

While the Commission's measures include plans to temporarily relax state aid rules to help member states manage high energy bills and invest in green energy, the ETUC argues this approach will not foster a unified and coordinated response. Many nations, they contend, lack the fiscal space and borrowing capacity to achieve the Commission's objectives. Consequently, the ETUC is demanding a halt to the EU's fiscal rules, which they believe are essential for enabling member states to support a just transition for workers and provide relief to households grappling with soaring energy costs.

Furthermore, the ETUC is advocating for increased public investment in infrastructure, with private capital serving as a supplement rather than a replacement. They draw a parallel to the SURE program during the pandemic, emphasizing the need for the EU to safeguard jobs, incomes, and production in affected sectors, including transportation. Any public funds allocated to companies must be contingent on job protection and profit reinvestment, not shareholder payouts. The confederation also calls for windfall taxes on energy giants profiting excessively and a reform of the electricity market to decouple wholesale prices from gas.

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The European Commission has recognized the need for governments to protect workers and invest in renewable energy sources by changing the state aid rules.

ETUC General Secretary Esther Lynch acknowledged the Commission's recognition of the need for governments to protect workers and invest in renewables but stressed that the proposed measures fall short of the crisis's magnitude. She urged member states to bridge the gap and provide guarantees for workers' jobs and incomes. Lynch pointed out that while the Commission seeks a common response, it has provided only half the necessary tools. Addressing the root cause—Europe's reliance on fossil fuels—requires massive, sustained investment in renewables, which is incompatible with the austerity measures many member states are forced to adopt due to current EU fiscal rules.

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The Commission has provided only half the tools.