Brussels: Europe and the Arabs
Sweden assumes the rotating presidency of the European Union as of the beginning of the new year and continues until the end of next June. The usual meeting took place between the new presidency and members of the executive body of the Union "the Commission". Sweden is taking over at a very critical time.It is now ten months since the start of the horrible Russian war against Ukraine.The Ukrainians are fighting with the same fervor as on the first day.We support them as hard as on the first day and for as long as it takes.
"Thank you, dear Ulf, for making Ukraine the number one priority of your presidency. Your leadership will be vital to maintaining our incredible European unity and resolve. We need to continue to increase pressure on Russia. We will of course continue our unwavering support for Ukraine. We will start in January at The disbursement of the first tranche of the €18 billion support package to Ukraine This is the largest overall financial aid package that the European Union has provided to a partner country We are preparing for the reconstruction of Ukraine The international donor platform that we set up with our G7 partners will be up and running this month It will help coordinate Different support for Ukraine today It will also be an important tool to ensure that reconstruction combines reform and investment as this paves the way towards EU membership.
My second point is about energy. Without any question, before the war, we were very dependent on Russian fossil fuels. Russia has taken advantage of this dependence and weaponized energy. Russia tried to blackmail us, but it failed thanks to our unity. Russia cut off 80% of our gas supplies in just eight months. But we have mastered an unprecedented energy crisis. We compensated for the interruption of Russian gas by diversifying to other reliable suppliers. We were able to compensate without any power outages. We've managed to save energy - 20% so far. We economize on energy-producing corporations' super profits, money that member states can then invest in favor of vulnerable households and businesses. We have provided a maximum price. And we've dramatically accelerated permitting for renewable energy.
Today we can say: that hard work has paid off. Gas prices today are lower than they were before the Russian invasion. Dutch gas futures prices have fallen more than 80% since August. Our storage levels are 83% full. This is among the highest levels ever for this time of year. And we deployed twice as much renewable energy capacity as expected last year. But we also know we're not out of the woods right now. We must continue our work to make energy affordable for Europeans. We will propose a reform of the electricity market design, this spring, and I look forward to rapid progress under the Swedish presidency. We will activate the joint procurement mechanism. We already had our first stakeholder meeting in December - rallying companies and member states across our energy platform. Because we want to use our collective market power to get joint gas purchases. And of course, we need to increase the spread of renewables. We should also aim this year, again, to double the additional renewable capacity that's been added to the market. Because we all know that local renewable energy sources are indispensable to our energy independence. They are, of course, the key to our green transition.
This is my third point. I applaud your ambition to conclude negotiations on the landmark legislation of the European Green Deal, which is a "suitable package for 55". We made really good progress last year. We have agreed on half of the proposals needed to reduce carbon dioxide emissions by at least 55% by 2030. Now the second half must be delivered. I am confident that the Swedish presidency can guide us through this final stage. This is very important to us because we need to reach our climate goals, but it is also important to us because of our competitiveness.
This is my fourth and final point. We have a thriving cleantech industry and we need a thriving cleantech industry. We need it to maintain our decarbonization leadership but also to sustain our prosperity. Europe is a leader in clean technology. But we all know that competition is increasing. First of all, this is very good for our net zero ambition. It's very good for our climate goals. But unless a level playing field is maintained, this could have a negative impact on our competitiveness and our investments in Europe. We need that global level playing field. And there is, of course, the impact of the US Inflation Act - which we've already discussed. We are currently working intensively with the United States to reduce the negative side effects of Europe's inflationary law. However, more importantly, we are facing unfair competition in the clean tech sector from China. Think of the huge and hidden subsidies in the production of wind turbines, for example, or solar panels. So we want to discuss with you, the Swedish Presidency, - and we've already started - how we can send a signal to companies in Europe. We want to reassure businesses in Europe of our determination to maintain and enhance Europe's economic attractiveness. And here, I see many of the areas of work that we've discussed.
The first is new legislation to reduce our dependencies, for example on raw materials - there, yesterday's news about rare earth being found here in the region was great - but also to focus on specific sensitive sectors - like the clean tech sector like header and Jane. This new legislation will also include a reconsideration of some of our permit requirements. Because I hear over and over again that in these renewable energy projects the question of what is allowed is always the question of what is burning.
Second, we will update the state aid framework. We need to facilitate public investment in the transition as a bridge. We are currently consulting with member states on targeted and temporary changes to our state aid framework to make it more predictable and simpler. And we are revisiting the current framework of the IPCEIs, the so-called Important Projects of Common European Interest. You know them all. It's very attractive but we have to be quick.
The third point is that with the help of the state, we also have to look at how we can make sure that there are investments across the EU to maintain the single market. So as a complement, or the flip side of the state aid coin, we need to create reliable and ambitious financing instruments. Such financing must be available in the short and medium term to allow for an adequate European response. We are now working on a needs assessment to get facts and figures to take into account the increasing competition and then develop the three business areas I was just discussing.
Finally, as I said, we need an ambitious trade agenda. This of course includes ensuring diversification through the conclusion of trade agreements, for example between the European Union, Mexico, Chile, New Zealand and Australia.
So there is a lot on our table. We've discussed a lot but I'm very much looking forward to the next six months of the Swedish presidency. Let's make Europe greener, safer and freer.