What is the EU’s response to the current energy crisis?

On 22 April the European Commission published their plan, AccelerateEU, to address the energy-price shock triggered by the US-Iran war and subsequent blockade of the Strait of Hormuz. This plan aims to turn the crisis into catalyst. It pushes the European Union to reduce its dependence on volatile fossil-fuel imports and accelerate the shift to clean, domestic energy. 

The Commission rightly identifies the need to foster electrification, which has long stagnated at around 20% of EU final energy consumption; it calls for faster grid upgrades, investment in clean energy and more targeted use of EU funds and carbon revenues to promote electrification in the industrial sector. These measures will not ease immediate pressures but are central for the EU’s long-term resilience.

In the short term, however, the Commission’s role is limited. Energy and fiscal policies remain largely national competences. AccelerateEU, therefore, focuses on coordination. 

First, it seeks to align member states’ gas-storage filling and revive joint oil and gas purchasing – ideas that may help at the margins but face practical and political limits in global markets. It also proposes a ‘fuel observatory’ to improve the transparency of refining capacities and jet fuel availability.

Second, the Commission aims to shield consumers by easing state-aid rules to support affected sectors, though such measures should remain temporary and targeted. However, national responses – such as recent fuel tax cuts in Spain and Germany – have largely gone in the other direction.

Third, it promotes voluntary demand reduction. While coordinated action can prevent abrupt shortages, success depends on national implementation. 

Ultimately, the success of AccelerateEU will depend on member states aligning on a shared strategy.

The Why Axis is a weekly newsletter distributed by Bruegel, bringing you the latest research on European economic policy. 

Sign up for the newsletter.