The leaders of the European Union's 27 member states agreed during Thursday's summit that high energy and fuel prices require a coordinated European response, following a difficult round of negotiations that exposed divisions between member states, particularly Germany and Italy.
Responsibility for drawing up any additional measures has now been handed to the European Commission, which will determine possible next steps following political guidance from the European Council.
Leaders acknowledge need for action
Member states recognised that surging energy prices require urgent and targeted action at European level, but failed to agree on specific new interventions or additional fiscal flexibility.
The compromise is reflected in the summit conclusions, where leaders called on the Commission to examine and, if necessary, propose additional short-term measures, taking into account the specific circumstances of different member states and variations in electricity prices across the bloc.
The reference is particularly significant for countries with isolated or small energy systems, such as Cyprus, where electricity costs remain structurally higher than in many other EU states.
Support for state aid and refinery measures
Leaders welcomed the Commission's intention to extend the temporary state-aid framework for the industries most exposed to high energy costs.
They also endorsed efforts to improve the capacity and efficiency of European refineries, encourage voluntary aggregation of energy demand and postpone certain obligations under the EU methane regulation.
ETS2 remains on track
The summit did not deliver the postponement of ETS2, the EU's planned expansion of carbon pricing to transport and heating from 2028, despite demands from several member states.
Instead, leaders asked the Commission to conduct an updated assessment of the scheme's impact, particularly its design and protective safeguards.
For the existing Emissions Trading System (ETS), member states called for measures to reduce carbon price volatility and limit its impact on electricity costs while preserving the scheme's central role in the green transition.
Leaders also urged lawmakers to accelerate work on the Market Stability Reserve, aimed at reducing excessive fluctuations in carbon prices.
Italy falls short on key demand
The outcome partially satisfied countries that had sought changes to the ETS framework.
Italy failed to secure a delay to ETS2, although the requested reassessment by the Commission leaves the issue open for further discussion once updated findings are presented.
Meanwhile, proposals backed by Greece for additional protection of vulnerable households and businesses did not result in dedicated fiscal measures. However, the final text acknowledges the need for immediate action and refers the matter to the Commission.
Clash between Italy and Germany
Discussions became increasingly contentious over ETS2.
Italy, alongside Hungary, Poland, Czechia and Slovakia, argued that extending carbon pricing to transport and heating would place an excessive burden on consumers.
Opposing them were Germany, France, Spain, Portugal, the Nordic countries and the Netherlands, which insisted on maintaining the existing framework.
The disagreement reportedly led to tensions between German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni.
Negotiations were suspended several times as leaders attempted to rewrite key sections of the conclusions and return the issue to the table.
Migration debate looms
The prolonged energy discussions delayed work on the EU's next Multiannual Financial Framework and ultimately led to the cancellation of a scheduled joint press conference by European Council President António Costa and European Commission President Ursula von der Leyen on Thursday evening.
Attention is now turning to the second day of the summit, where migration policy is expected to dominate discussions.
A strategic debate initiated by Denmark and Italy is likely to become the next major battleground, with a potential clash anticipated between Meloni and Spanish Prime Minister Pedro Sánchez.
Earlier in the day, the 16 member states advocating a stricter migration policy are expected to meet separately.
Source: CNA
