Many countries will struggle to be able to do what’s needed to address the energy crisis after being given only half a toolbox by the European Commission today, trade unions are warning.

The measures published today by the Commission include plans to temporarily lift state aid rules to allow member states to alleviate high energy bills and invest in green energy.

But the European Trade Union Confederation (ETUC) has written to the Commission to say that this will not lead to the joined up approach it is seeking, as many member states do not have the fiscal headroom or borrowing capacity to meet the Commission’s goals.

That is why the ETUC is calling for:

  • A suspension of the EU's fiscal rules: Member States must be given the fiscal room to support a just transition for workers while also supporting impacted households;
  • Increased public investment in infrastructure: Private capital can complement public action but it is not a substitute for public investment;
  •  SURE 2.0: Building on the model of the SURE policy which saved jobs during the pandemic, Europe must protect jobs, incomes, production in affected sectors, including transport.
  • Social conditionalities: Any public money given to companies to help them through the crisis must be made conditional on the protection of jobs and conditions, and profits being reinvested rather than paid to shareholders or CEOs;
  • Windfall taxes on energy companies: Action to stop profiteering by energy giants making €80 million a day, pushing up prices across the economy and driving inflation;
  • Electricity market reform: Even where renewables dominate, gas too often continues to set wholesale prices – hurting workers and companies.

ETUC General Secretary Esther Lynch said:

“In changing state aid rules, the Commission has recognised the need for governments to protect workers and invest in renewable energy. But the scale of the action proposed by the Commission today does not match the crisis facing workers or our industries. Member states need to plug the gap in the proposals from the Commission and provide guarantees for jobs and incomes of workers.

“The Commission is rightly seeking a joined-up response but has only given member states half a toolbox. Changes to state aid rules will help countries which already have the capacity to save jobs and invest in renewables.

“What we need to see is the return of EU-wide measures used successfully during the pandemic to ensure that all member states can take the action needed to prevent this energy shock becoming a social and economic crisis.

“Dealing with the root cause of this problem – Europe’s dependence on volatile fossil fuels – will require massive and sustained investment in renewables. That is incompatible with the austerity measures being pushed on many member states by the EU’s fiscal rules.

"We also won't end our reliance on fossil fuels without investing in our workforce. The Commission says Europe's energy sector will require at least 145,000 additional skilled workers by 2030. But workers are not receiving training and research shows green jobs often offer worse conditions than existing industrial jobs. Raising the quality of jobs is essential for attracting and retaining the workers we will need to reach energy independence."