This transcript was automatically generated and may contain errors.

Thank you very much, Ms Raouna, and now I give the floor to the President of the European Commission, Ursula von der Leyen.

Madam President, dear Roberta,

Deputy Minister Rafuna dear Marilena, honorable Members.

The informal course started with good news for Europe and Ukraine.

In spring, we said that we would deliver on the EUR €90 billion loan for Ukraine one way or the other. Now we made good on this promise.

We will disperse the first tranche of EUR €45 billion for 2026 still this quarter.

One third for budgetary needs, and 2/3 go to Ukraine's defense.

The first defense package will be on drones from Ukraine to Ukraine,

worth some €6 billion so our message is very clear we will continue our support to the brave Ukrainian people and their armed forces.

While Russia is doubling down on its aggression, Europe doubles down on our support for Ukraine.

That day we also adopted the 20th sanctions package, and yes, the sanctions are biting,

they have a biting effect on the Russian economy, with inflation increasing and interest rates skyrocketing.

The consequences of Russia's war of choice are also being paid for out of Russian people's pockets,

so much so that the Kremlin responds in an unusual way by restricting the Internet and free communication,

so much so that Russians feel that they live behind an iron curtain again. This time, a digital Iron Curtain.

But, honorable Members, if history has one lesson, it's that all walls eventually fall.

Honourable Members It's been exactly 2 months since the new war in the Middle East began.

We are finally witnessing a lull after weeks of violence.

We all want the ceasefire in Iran and Lebanon to hold.

With the ultimate goal to reestablish peace and stability through diplomatic means.

We were joined in Cyprus by leaders from Egypt, Lebanon, Syria, Jordan and the Secretary General of the GCC,

and this was an opportunity to reiterate our solidarity with partners.

Our shared goal is now to see a lasting end to the war.

This includes restoring full and permanent freedom of navigation in the Strait of Hormuz without tolls,

and it is equally clear that any peace agreement will have to address Iran's nuclear and ballistic missile program.

But there is also a harsh reality we all need to face.

The consequences of this conflict may echo for months or even years to come.

This is why energy was at the top of the informal Yukos agenda.

This is the 2nd energy crisis within 4 years. The lesson should be very clear.

Our over dependency on imported fossil fuels makes us vulnerable,

and let me give you two figures. In just 60 days of conflict.

Our bill for fossil fuel imports has increased by over EUR 27 billion without one single molecule of energy in addition. The way forward is obvious.

We must reduce our over dependency on imported fossil fuels, and we must boost our homegrown,

affordable, clean energy supply from renewables to nuclear, in full respect of technology neutrality.

Already today,

Member States with more low carbon sources in their energy mix are less impacted by the crisis. Take a country like Sweden.

If the gas price increases by €1 per megawatt hour.

The electricity bill only increases by 0.04 per megawatt hour.

Almost all of Sweden's electricity comes from renewables and nuclear.

This is how we insulate ourselves from future shocks, and this is the path to the independence of Europe.

Honourable Members As I said, every Member State has a different energy mix, therefore.

A blanket solution, one size fits all, to address the current crisis would simply not work.

This is why last week we presented a whole toolbox of measures.

That can be combined differently in different parts of the Union.

I want to focus on 3 sets of measures.

The first is increased coordination at the European level.

At the start of the previous energy crisis, there was a rush to the gas markets, and this contributed to driving prices up.

We basically were competing against ourselves in the global market.

That's why at that time we stepped up European coordination, for instance, with common gas procurement.

This time we are taking the same approach one step further.

We propose stronger coordination not only in filling national gas storage.

But also when it comes to fuel reserves, especially jet fuels and diesel, where markets are tightening.

We can be so much more effective if we coordinate the release of oil stocks.

We make sure that refineries can step up production all across our Union.

Because together we have the market power and we have the industrial might,

so let's put it at the service of all Europeans.

The 2nd point, we have to protect consumers and businesses.

There is a lesson to be learned from the last crisis measures should be targeted at the most vulnerable households and industries only,

and we should avoid increasing the demand for oil and gas at this time. Let me give you again a figure.

During the last crisis,

only 1 25% The emergency support was targeted to vulnerable households and businesses.

In other words, more than 350 billion was spent on untargeted measures.

This had a huge impact on Member States' finances and it also undermined the measures to protect those most in need.

So let's not make the same mistake again and let's focus our support where it matters most.

My 3rd point is that we must reduce energy demand by modernizing systemic energy use.

In the short term, we can do this through a combination of energy efficiency. And electrification. We should also keep in mind.

That overall, we will need energy in abundance,

especially because of the rapid scale up of data centers and artificial intelligence.

Since the last crisis, we have already made great progress.

In 2022 Gas determined our electricity prices for 70% of the time. Today this is down to 30%.

That is why this time we have avoided the huge price spikes of the previous crisis.

Electricity still represents less than 25% of our final energy consumption.

This is much lower, as, for example, in the United States or China, so this has to, and this will change.

A continent like ours, with limited fossil fuel resources,

should lead the world on electrification.

This is the reason why last December, we proposed the grids package.

Its goal is to make our energy and infrastructure fit for the electrification age.

I am very glad that last week in Cyprus, the European Parliament, the Council agreed to speed up the negotiations.

As a next step, we will put forward our electrification action plan by the summer,

with an ambitious electrification target. Speaking of finances.

In the current European budget, we have set aside almost €300 billion for energy.

95 billion of which are not used so far.

I know I'm preaching here almost in the wrong Church, but let us use this to make the switch to electricity,

not just in transport, but also in industry and in heating.

This is not only a matter of affordability and competitiveness, this is also, as we learn in this crisis, a matter of economic security.

Thus,

speaking of European independence means it is the moment to electrify Europe.

Finally, a few words on the MFF, we also discussed at the informal Council in Cyprus.

We all know that the next budget is central to our competitiveness agenda.

It can de-risk investment and crowd in private capital.

It can fund strategic priorities at a real European scale,

it can support reforms that make Europe a better place to invest,

but we must be lucid about the budgetary equation.

From 2028 onwards we will have to start to pay back Next Generation EU.

We need to invest more in our new priorities like research and development,

competitiveness, defense, security, you name it.

We want to sustain funding for the EU's long standing priorities, that is cohesion and the CAP.

We want to keep national contributions in check.

If this is the case, all 4 elements,

the budgetary equation is clear new own resources are indispensable.

Without them The choice is stark higher national contributions or lower spending,

in other words, less Europe exactly when more Europe is needed.

This is why the Commission has proposed a comprehensive package of new own resources.

A package that is diversified,

linked to our Union's policies and capable of generating stable revenues over time.

This is the only credible way to match Europe's priorities with Europe's means.

Thank you very much and long live Europe.