New ‘Pandemic-level’ Solidarity Fund needed in the face of pan-EU energy crisis & war

The Greens/EFA Group calls for the establishment of a new EU Solidarity Fund based on joint borrowing and grants to address the energy crisis and avoid political and economic fragmentation.  As temperatures drop, the energy price shock that people and businesses will face this winter is quickly becoming apparent. For many, the higher prices are simply unsustainable. A manifold increase in prices will threaten livelihoods, drive citizens into poverty, and contribute to a wave of insolvencies.  Like in the pandemic crisis, the scale of a country’s response depends on its ability to take on additional debt, rather than on the actual needs of that country. Most Member States simply cannot afford a national fiscal response of €200 billion, as recently announced by Germany. While such state interventions to protect citizens and businesses are welcome, a coordinated EU approach is needed. Otherwise, broad subsidisation of consumers and businesses in one Member State has the potential to undermine the level playing field in the EU’s Single Market by granting a national industry base a competitive advantage at the expense of others.