Draghi proposes the use of anti-crisis funds to reduce the cost of the war in Ukraine

“Russia sells almost two-thirds of its natural gas to Europe, mostly through pipelines that cannot be routed to other buyers. “Our proposal will serve to reduce the exorbitant costs facing our economies, and will also allow us to reduce the amounts we send every day to President (Vladimir) Putin, which inevitably finance his military campaign.” session European Parliament He is in Strasbourg in an intervention where the EU has closed ranks, including the energy sector, with the sanctions imposed on Russia. We supported and will continue to support the sanctions that the EU decided to impose on Russia, as well as those in the energy sector. conviction in the future,” he assured.

In terms of energy, Draghi structural analysis of electricity market pricing mechanism Separating the price of gas from electricity, as advocated by Spain or France. He considers the price gap “disproportionate” and predicts that this systemic problem will “get worse over time” because costs will be lower as the share of renewables in the energy mix remains low. and less representative of production cost. “We have to break the link between gas and electricity price. strong and urgent decisions which is in the interest of all European citizens,” he argued. Council of Europe at the end of May.

war expenses

And not only strong European decisions on prices, but also costs The war in Ukraine, which comes at a time when Europe already has huge spending needs that “no national budget” alone can meet. “Asymmetrical” costs that affect different segments of the population differently and require different compensatory measures. “The social peace of our continent is at stake, our ability to withstand sanctions, especially in countries that are more dependent on Russia for historical reasons,” and “The European Union has already designed some useful tools to manage these challenges,” he said. . . .

for example, he sure fundIt makes it possible to finance employment regulation files during the pandemic and could be a temporary support tool, as it stands, “to reduce unemployment risks in an emergency,” according to Draghi. “The use of a credit mechanism such as SURE will make it possible to avoid the use of non-refundable subsidies for the payment of national current expenditure measures. It will also provide Member States with a cheaper alternative to market debt and the most fragile public finances at a stage where interest rates are rising.

In this way, we can broaden the scope of support interventions and at the same time limit the risk of financial instability,” said the Italian leader, noting that “the European Union should broaden its scope to provide countries with new funds.” “I’m also talking about temporary support for lower wages through tax cut measures because it will “maintain” the purchasing power of households, especially the most vulnerable. Instead, to finance long-term investments in defence, the energy transition, or food and industrial security, under Part Next Generation EU.

“Pragmatic Federalism”

In his speech, the Italian Prime Minister also advocated for faster European integration and reforms, as “the European institutions that our predecessors have built in recent years, although they have served European citizens well, are insufficient for the reality that manifests itself today”. To do this, the EU must arm itself with what it calls “the one”. “pragmatic federalism” It covers all areas affected by ongoing transformations, from economy to energy to security.

For example, he advocated the end of unanimity and the approval of resolutions by qualified majority, saying that “If this requires the beginning of a path leading to a revision of the Treaties, it must be approached with courage and confidence.” The old banker also reminded full integration The percentage of countries willing to join the club, which does not pose a threat to the stability of the European project, supported the opening of membership negotiations with the EU as soon as possible. Albanian and together North Macedoniagive new impetus to negotiations with Serbia and Montenegroand guarantees maximum attention to their legitimate expectations. Bosnia and Herzegovina and Kosovo.