Soaring energy prices are set to dominate today’s EU leaders’ summit, threatening to overshadow negotiations on the bloc’s next long-term budget for 2028-34. European gas prices have risen roughly 140% and diesel prices have doubled since the US-Israel war against Iran began in February, with some member states blaming the emissions trading system (ETS) for exacerbating the crisis, while others defend it as necessary for long-term climate goals. Draft conclusions urge the European Commission to present further short-term measures to address energy prices, though officials note Brussels has limited tools to act quickly.
Leaders of Finland, Sweden and Denmark have warned against weakening the ETS, stressing that climate neutrality requires predictable rules to attract long-term investment. Meanwhile, Italy, Greece and the Visegrad countries seek more flexibility — Italy wants to delay ETS expansion into heating and transport, and Greece and Italy request fiscal rule leeway to subsidise energy costs, though Brussels is unlikely to approve. Italy’s request to cap gas prices below market levels may gain Commission approval.
The focus on energy has made a self-imposed year-end deadline for the 2028-34 budget agreement likely to slip, with references to that deadline already removed from draft conclusions at the behest of France, Italy and Sweden. Italian Prime Minister Giorgia Meloni reiterated that her country will not sign a disadvantageous deal just to meet a timeline. In related news, Europe’s top salmon producers are feeding chicken to fish, breaking a longstanding industry taboo, and AI adoption across Europe is outpacing expectations, particularly in non-work contexts, as the EU pushes to capture economic benefits from artificial intelligence.
Source: Financial Times Companies · Summarized by HeadlinesBriefing