Pedro Sanchez calls on EU to speed up energy transition, tax energy giants

Spanish Prime Minister Pedro Sánchez called on the European Union to strengthen joint measures to overcome the energy crisis, including accelerating the transition to renewable energy sources and introducing a tax on major energy companies.

As per Report, he made this statement before the start of the second day of the informal summit of EU heads of state and government in Nicosia (Cyprus).

Sánchez stated that the rise in energy prices caused by the conflict in the Middle East is already putting significant pressure on European economies.

"Since the start of the war, Europe has paid an additional 24 billion euros for fossil fuel imports - that's about 500 million euros per day," he noted.

He emphasized that the most effective solution remains the earliest possible resolution of the conflicts: "The least costly measure and the one that saves the most lives is to end this war as soon as possible."

In the short term, he said, the EU must act in a coordinated manner. In particular, Spain proposes accelerating the electrification of the economy and reducing dependence on fossil fuels, increasing investment in renewable energy sources, and expanding cross-border energy interconnections.

"We need to break away from fossil fuels and achieve energy autonomy by betting on solar, wind, and hydropower," Sánchez stated.

He also advocated for the introduction of a temporary windfall profit tax on energy companies: "There are companies that benefit from rising oil prices, and we need a coordinated measure - an emergency tax to finance the protection of citizens and businesses."

In addition, the prime minister proposed extending the EU's Next Generation recovery fund (a mechanism introduced during the COVID-19 pandemic to help EU member states overcome its consequences) and easing fiscal rules for investments in the energy transition.

"This will make our economies more resilient," he emphasized.

Sánchez added that the EU should show "more ambition" in its collective response to the crisis.