EC President von der Leyen says a prolonged disruption to Gulf oil and gas could have significant impact on the EU economy; short term responses to tackle energy prices must be temporary and targeted

• Must introduce measures addressing cost of electricity.
• EU will eliminate barriers to the use of power purchase agreements and combine them with contracts for difference.
• Upcoming EU Inc proposal will allow companies to register in 48 hours with no minimum share capital requirement.
• There is scope, including through legislation, to cut electricity taxation.

President von der Leyen's comments underscore the potential economic threat from prolonged disruptions in Gulf oil and gas supplies, highlighting significant implications for the EU's energy security. The emphasis on targeted, temporary measures to manage energy costs points to a proactive policy response, likely aimed at stabilizing the market and mitigating inflationary pressures. This could reinvigorate discussions around energy diversification and the role of renewables in the EU's longer-term strategy.