A briefing on the union’s status ahead of the general assembly highlights the European Parliament’s essential role in shaping governance. The European corporate calendar marks the moment to set priorities, outline a new political course, and review the progress of the past year. The focus comes from a clear briefing by Ursula von der Leyen, president of the European Commission, who faces a year of unprecedented geopolitical and economic challenges. Russia’s invasion of Ukraine and the energy crisis, intensified by Moscow’s use of fossil fuels as a political lever, have tested the Union. The period has been described as a year unlike any other, yet a confident response from member states and institutions has underscored the Union’s resolve on the eve of discussions in Strasbourg.
Two years prior, the opening address carried a note of balance. The Covid-19 pandemic left a heavy toll, with a rapid death toll in Europe during the early months. Later, as vaccination campaigns rolled out, there was cautious optimism about economic recovery alongside the energy squeeze caused by rising electricity prices that threatened several economies, including Spain. The ongoing occupation of Ukraine remains a central theme for discussions about the Union’s sovereignty and its future direction.
energy emergency
After Russia invaded Ukraine and Moscow began to restrict gas supplies, price pressures on energy intensified. Brussels is poised to present the latest legislative proposals aimed at stabilizing the electricity market. The emergency package includes measures to curb electricity consumption, such as a mandatory 5% reduction during peak hours, flexibility for member states to adjust working hours, and an overall 10% cut. It contemplates limiting extraordinary profits from technologies that are cheaper than gas, including renewables and nuclear, with a target around 180-200 euros per megawatt-hour in draft proposals. A mandatory contribution from fossil fuel producers—oil, gas, coal, and refining—at least 33% of excess profits from 2022 is also contemplated. Efforts to cap Russian gas prices via pipelines have not reached consensus among the 27 member countries, and Brussels will postpone that item for now. Additional steps before summer aim to conserve gas and bolster reserves.
Stability Pact Reform
The Covid-19 crisis led the European Commission to temporarily suspend Stability and Growth Pact rules to give governments more fiscal space. These rules cap the deficit at 3% of GDP and debt at 60%, with a deadline extended to the end of 2023. Despite economic uncertainty, discussions on reactivating the pact have begun, and it remains a key economic task for the Community Executive in the coming months. Vice-President Valdis Dombrovkis, in Prague recently, indicated that a proposal would be submitted before the end of October. Governments seek more realistic debt relief, easier implementation, and a framework that accommodates investments in green and digital transitions.
rule of law and democracy
The defense of the rule of law has become a core pillar of von der Leyen’s team. Over three years at the helm, the leadership has faced challenges in Poland and Hungary regarding judicial reforms, media freedom, and the independence of institutions. The latest annual report shows ongoing friction as reforms progress, with discussions over conditionality mechanisms tied to budget support. The debate over an independent anti-corruption authority to oversee security forces and meteor the use of EU funds continues. Brussels plans to introduce a new law this week aimed at protecting journalists and media independence from political interference.
Green and digital transition
The European green deal stood out as a defining objective early in von der Leyen’s tenure, guiding economic recovery and ecological transformation toward climate neutrality by 2050. The institutions have aligned on most measures, including the climate package targeting a 55% reduction in CO2 emissions by 2030. The war in Ukraine has underscored the urgency of energy efficiency and the shift to renewable energy to reduce reliance on unstable partners. The digital agenda has advanced with legislation on digital services and markets, with ongoing negotiations and additional proposals anticipated before year-end. The EU also maintains bailout plans to support these agendas, though reforms on the rule of law remain a prerequisite in some member states.