European Council, Meloni pressing for flexibility. Clash over energy

The agreement on ETS arrived during the night, after a day of stalemate.

"The European Council invites the EU Commission to update the assessment of all the impacts of ETS2, in particular with regard to its structure and its safeguard measures", we read in the text of the conclusions of the summit, adopted after a long clash between the 27.

The text "reiterates the need to urgently ensure a well-functioning, transparent and predictable carbon market, to reduce the volatility of the carbon price and to mitigate its impact on electricity prices, while preserving the essential role of the ETS".

Today is the second and last day of the summit. On the table are the war in Ukraine, with Zelensky's participation, and the one in the Middle East.

Tension on the ETS

Strong tensions therefore to reach an agreement on the CO2 emissions trading market. The issue is broader than the ETS itself: in the balance there is the concept of energy strategy in the broad sense, between those who do not want to retreat from the Green transition and the push of those, like Giorgia Meloni, who ask for a brake, or in any case for exceptions, to European policies on renewables.

The stalemate lasted practically all day yesterday, leaving the text of the conclusions open. The agreement then arrived during the night.

The text "reiterates the need to urgently ensure a well-functioning, transparent and predictable carbon market, to reduce the volatility of the carbon price and to mitigate its impact on electricity prices, while preserving the essential role of the ETS".

Dear energy and fiscal flexibility

The issue of fiscal flexibility is also central. Meloni, as expected, raised the issue, asking to consider the high prices as a determining external factor, albeit within the fiscal rules.

Only Greece openly supported it. The president of the commission Ursula von der Leyen instead once again underlined the need for caution on public finances, explaining that the only measure "in the very short term" can only be the extension of the state aid regime for the energy crisis.