The Council and Commission gives their concluding statements of the European Council meeting of 20-21 October 2022. Opening statements by Charles MICHEL, President of the European Council and by Ursula von der LEYEN, President of the European Commission. This transcription is a result of an automatic process. Please check against delivery.

Brussels

statement

debate

plenary session

METSOLA, Roberta (EPP, MT, EP President)

MICHEL, Charles (BE)

VON DER LEYEN, Ursula (DE, EC)

European Council meeting 20-21 October 2022 (T)

Conclusions of the European Council meeting of 20-21 October 2022: opening statements by Charles MICHEL, President of the European Council and by Ursula von der LEYEN, President of the European Commission

https://api.multimedia.europarl.europa.eu/documents/20125/66347912/1668004254251_I232462Chapters%5BSD-EN%5D.srt

SOUNDBITE (English), Charles MICHEL, President of the European Council, Madam President of the European Parliament, President of the Commission, dear colleagues, President of the Parliament let me begin by saying that remembrance is a constant duty and I'd like to thank you for marking today with Europe's voice, thank you. Ladies and gentlemen, our last European Council meeting was a pivotal one, because our decisions are awaited.

SOUNDBITE (English), Charles MICHEL, President of the European Council, They are awaited by citizens and families facing astronomical gas and electricity bills. Awaited by businesses large and small, hit by unsustainable energy costs and inflationary pressure. And awaited by many European governments worried about the shrinking budgetary margins and despite initial different views, we overcame these differences and we agreed on a plan that covers the different path of action.

SOUNDBITE (English), Charles MICHEL, President of the European Council, The European Council had on many occasions asked the Commission to make concrete proposals in three areas. To COP, energy prices, to ensure security of supply and to reduce demand. And several proposals put on the table some time ago and another package was tabled shortly before our meeting of the European Council. At our European Council meeting, we set out a plan of action with a framework of nine concrete measures, and we asked the Commission to urgently concrete legislative proposals on the table.

SOUNDBITE (English), Charles MICHEL, President of the European Council, The war in Ukraine and the energy crisis has directly impacted our economies and our citizens. It's time to act. Kicking the can further down the road is no longer an option. Ladies and gentlemen, dear friends, when we join forces and by together we boost our bargaining power and we can get a better deal. Now it's also time to put our joint gas purchasing into action. This will be voluntary except for volumes corresponding to 15 percent of the necessary stocks. We should be subject to mandatory joint tenders.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Finally, it's vital that we negotiate effective and rapidly with our reliable partners. They are also our close allies like Norway and the United States. Our EU prosperity and economic security are also key to their prosperity and economic security, it doesn't make sense that their exceptional profits due to the war in Ukraine should make Europeans poorer. Our economy is weaker and our industries less competitive.

SOUNDBITE (English), Charles MICHEL, President of the European Council, And this just to maintain our gas imports, so these negotiations must move forward without delay. Ladies and gentlemen, the price of gas on the international market is going down substantially since August, but it remains much higher than before the war in Ukraine. It's critical that we get these prices down, while also ensuring our security of supply and the European Commission is tasked with preparing a new complementary benchmark by early 2023.

SOUNDBITE (English), Charles MICHEL, President of the European Council, This new benchmark should better reflect the reality of the European gas market. The Commission is also tasked with developing a dynamic price corridor to reduce price volatility in natural gas transactions as soon as possible. And finally, the European Council awaits a proposal for a temporary cap on the price of gas for electricity generation supported by cost benefit analysis.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Finally, we discussed how we can support the resilience of our economies to protect our families, our businesses, and to preserve our single market, the pillar of our prosperity while avoiding fragmentation. We also need to protect the competitiveness of our companies compared to other regions of the world. We are already seeing, for instance, the first incentive for our companies to relocate the factories, notably across the Atlantic.

SOUNDBITE (English), Charles MICHEL, President of the European Council, So we must closely coordinate our national policies. And you've also agreed to mobilise all appropriate financial tools at national at European and European level to maintain a level playing field within our union. The Council will monitor the situation closely and act to ensure an appropriate policy response. Yes, these issues are complex, but you have entered into this debate confronting any taboos.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Ladies and gentlemen, the Council was also an opportunity to once again look at an issue that is at the heart of all our concerns, the war in Ukraine. We held discussions in Prague and this was another opportunity to reiterate our determination to support Ukraine as much as possible financially, first and foremost. So we'll continue to work to implement the promise of three billion additional euros for macro financial assistance to Ukraine.

SOUNDBITE (English), Charles MICHEL, President of the European Council, We also committed ourselves to work towards more structured financing, and the Commission proposal will be looked at very closely for next year. This will be a signal of stability being sent out to Ukrainians. We also want to continue our efforts in the military sphere and also the humanitarian and political spheres, as you are aware.

SOUNDBITE (English), Charles MICHEL, President of the European Council, The German chancellor, together with the Commission, recently held a reconstruction conference in Berlin. We support those efforts that are being made by Europeans together with our partners and allies. We also had the opportunity in the Council to ensure that there was no impunity and use national and international justice systems to ensure that those who are responsible for war crimes respond for their crimes.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Finally, during this Council meeting, we held an essential, strategic debate on relations between the European Union and China. And this just a few weeks after an important political event took place in China. Firstly, we note that the Chinese political and institutional system is radically different to us.

SOUNDBITE (English), Charles MICHEL, President of the European Council, In Europe we have values that we hold dear personal freedoms, human rights, press freedom, freedom of expression. Censorship does not have a place in the European Union, and all leaders reaffirmed their commitment to constantly be on their guard when it comes to protecting these essential values, we believe we have a responsibility to defend human rights and democratic principles.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Secondly, and this has clearly shown by the war in Ukraine, it is crucial for Europe to be independent and autonomous vis a vis China in many areas. We don't want to be dependent on China, for example, rare earth materials which are essential for the future in terms of technological innovation. We want to see more reciprocity, more of a level playing field. These are all crucial things for us looking to the future.

SOUNDBITE (English), Charles MICHEL, President of the European Council, And then a third point when it comes to global issues, the climate, for example, it's essential to work together with all our partners in the world. So that we can deal with the environmental threat, just as we did for Covid when we responded to the pandemic. We need to do the same in other areas.

SOUNDBITE (English), Charles MICHEL, President of the European Council, The European Council is very aware of how China is developing, how China sees the world and how its acting in the multilateral and multilateral fora. And our aim is to ensure that our values and principles and interests are defended and we need to push our vision, which is crucial to the dignity of every individual human being.

SOUNDBITE (English), Charles MICHEL, President of the European Council, Finally, ladies and gentlemen, this debate was an opportunity for leaders to express themselves on the latest developments in Iran. Initial sanctions decisions have been taken and Member States are currently continuing to work to implement additional sanctions and we hope that European leaders will firmly condemn the repression that's taking place against peaceful demonstrators in Iran. And we welcome the extraordinary courage of these women and young girls who are mobilising to defend their dignities and rights. We want to support them in doing thank you.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Thank you very much, Madam President, dear Roberta. President Michel, dear Charles. Honourable Members, indeed, the bulk of the discussion in the European Council was about the important topic of energy and the magnitude of the energy crisis calls absolutely for both, a sense of urgency and a strategic foresight. And I think we should not forget where we came from.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, We have made more progress than we thought ever possible because we should not forget that at the beginning of this war, since the beginning of this war, Putin has cut 80 percent of the pipeline gas supply to the European Union, 80 percent. And in only eight months, we have managed to replace most of it. We have more than doubled, for example, the imports of LNG from the United States. From 20 to BCM last year to 48 BCM this year so far.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, This has, amongst others, made it possible for us to fill our storages today by 95 percent and at the same time we have reduced our gas consumption by 15 percent. I have not forgotten, at the beginning of this war how Putin tried to put pressure on us through energy and our some feared that we would have blackouts in Europe when the war started.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, So honourable Members not only did this scenario not materialise, but now we are fully prepared for the winter. And crucially, gas prices have dropped by roughly two third compared to the peak that we had in August. So Putin really tried everything to bring us down to our knees. He completely failed. We have all played our part to make this happen, and I think we can be proud of this.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Ladies and gentlemen, in the weeks that have just gone by, there are a number of measures that have been taken to bring the prices down, a price break, for example, that is on its way. Also, when it comes to the excessive profits of energy companies, we can use those to help and also obviously look at the use of energy in various essential areas. We've also looked at the plans for gas and better design for our electricity market. This is all well and good. This is all extremely important and it does put us in a good position looking towards the coming winter.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Nevertheless, I think it's important that we do discuss today what is coming our way in terms of making sure we cover our gas storage needs, because we're going to have problems next year with this. In the spring, they're going to be three additional factors that are going against us. First of all, obviously, there's a risk that Russia stops that last 20 percent getting to us.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Then the question of provision of liquid natural gas coming our way and the possibility that the LNG coming onto the market early next year will be insufficient. And thirdly, we have to reckon that Asia, if we see the economy picking up again, will take the lion's share of this LNG supply. What that means is the result of these three factors together may lead to a considerable risk that at the end of next summer, about 30 billion cubic litres of LNG will be missing to stock up for the next winter for storage.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, So if these three factors come concurrently, that may be an issue. As I was describing these three risks, we are now getting prepared to tackle these potential risks, but we should not forget that in doing so, we are also setting the right course for the future. Because our choices today will determine whether we have the right energy we need for 2023 and beyond. So this is why today I would like to focus on two topics that are crucial.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, The first topic is renewables. It is no exaggeration to say that we stand at a crossroad. We can decide right now that either we ignore the lessons that we have learnt in this crisis and fall again into the trap of a carbon lock in for the future. Or we use this crisis to leapfrog into clean energy. And this is not only good for our climate, but it is also good for our security and our independence, especially in times when gas is and will stay a scares commodity.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, The good news is in this scenario that we are ready to accelerate. By the end of the year, we will have achieved the largest growth in renewables in the history of the European Union. This is almost a further 50 gigawatt that we will have additionally as renewables in the market, which is double what we had added last year. And we could accelerate even more. There are countless renewable projects that are just waiting to be approved.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Some could deliver cheap energy immediately in a matter of weeks or months. I'm thinking, for example, of solar panels on existing buildings or I'm thinking of repowering of wind parks. But we know that far too many of these projects are stuck because of long permitting procedures. Now, our new renewable energy directive, that you have already voted on in plenary, addresses this topic, but it will take time.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Well over a year, before this directive is translated into national law by all Member States. So with these extraordinary circumstances, our citizens and industries are facing, we do not have the luxury of time. And this is why today we are proposing a new emergency regulation under Article one to two to immediately speed up permitting for renewable energy projects with a rapid impact.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, This proposal will be limited in time and scope. It will be in line with what you have voted on and it will be bridging the gap until the new Renewable Energy Directive comes into force. And by doing so, we can unlock a myriad of renewable projects already in the next 12 months. So this is a very decisive move right now.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, According to the calculations by the International Energy Agency, we could replace 14 billion cubic metre of gas already next year. And that's almost half of our potential gap, I was just describing just by speeding up the permitting of these projects. This is realistic and we all can pull all of this together and I think we should grab the opportunity right now.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Ladies and Gentlemen, the second point I'd like to make, we have to ensure European industries competitiveness. This job of work starts here, starts in Europe. Intensive industries, glass, chemicals, etc. they use a lot of energy and they need to have access to a lot of cheap energy. But in these times, which are particularly difficult, prices have increased considerably vis a vis our main competitors.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Many of our companies have ended up in serious problems and this is why we've updated the temporary framework for crisis to deal with State aids. We've increased the ceilings for State aid for SMEs and energy intensive industries. However, not all Member States have the means to grant State aids, while all the Member States need to increase and accelerate their investments to reduce the demand for energy and to increase the production of renewables. And that is where RepowerEU will have an effect.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, Because if we boost the financial firepower of RepowerEU, we will ensure that all Member States have the possibility to realise these critical investments. In other words, this would give every Member State the same opportunity to prepare for the future and at the same time some fiscal space to support vulnerable households and businesses. So let's go for it.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, And this work is also helpful against the backdrop of an intensifying global clean tech race, because it will keep Europe attractive for industry. Let me be very clear, I do welcome global competition. This drives innovation, it enhances efficiency and it ensures progress. At the same time, in order to be effective, this global competition has to be fair. We need a level playing field.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the EC, We do not want to see market distortions or discrimination against our companies. So let's make sure that this is not a race to the bottom, but this is a race to the top for our climate and for our industry. That's what Europe stands for and I know that's also what this Parliament stands for. Long Live Europe and many thanks.