It has been well-established that Russia’s invasion of Ukraine has caused severe conflict with member countries of the European Union, and has led to the cutting of commercial ties with Russia’s oil and gas producers. While it is great that these European countries took a stand against the senseless violence instigated by Russia, this stance has also impacted Europe’s economy for the worse, and the EU has had to dole out even more financial aid to its member-states to ameliorate the damage.
“We are proposing to adjust the Temporary Crisis Framework so that it reflects and supports the important and urgent REPowerEU Plan objectives of accelerating the diversification of energy supplies to become independent from fossil fuels even more quickly,” Commission Vice-President Margrethe Vestager said.
With this adjustment in the Temporary Crisis Framework, the European Commission has decided to increase the amount of state-aid that its member-states can receive to cover energy costs to €500,000 in the form of loans, grants, and tax advantages. The Commission is also planning on making it easier for governments to invest in renewable energy with the REPowerEU project, including hydrogen, gas, methane, and heat. Diversifying its energy sources and finding alternatives to Russian oil and natural gas opens opportunities for substitutes to the less eco-friendly resources commonly used for generating electricity. According to Reuters, firms in the agriculture and fishery sectors may also receive financial aid up to €62,000 and €75,000 respectively, to keep their businesses afloat and able to provide plenty of food for importers and European residents.
Countries like Italy, Germany, and the Netherlands, have gone explicitly to the Commission for approval of their plans to help energy companies cover the costs of their lost trading partner. These expensive efforts will also help manage the spike in gas and electricity prices, and prevent consumers from paying the price of the conflict in Ukraine.
Overall, these policies by the EU Commission will be beneficial for the planet overall. While companies that relied on Russian oil and gas were hit hard by the Russia-Ukraine conflict, it seems to be the push that Europe needed to further their efforts in creating a more sustainable method of producing energy and reducing humanity’s carbon footprint. This is also important for the EU’s economy to start being more self-sufficient, and less reliant on outside countries such as Russia to provide energy sources for its member-states. By becoming more economically independent, the EU can be more comfortable in enforcing non-violent methods of protest, such as sanctions, in situations like the Russia-Ukraine conflict, so as to endorse a more peaceful world.
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