International economists call for greater cooperation between European Union (EU) countries on the energy issue, challenging them to prepare now for the next crisis in the sector to avoid the mistakes of the past.
“We call on the European Commission and political leaders to create a strategic office focused on preparing for the next energy crisis […] identifying potential weaknesses in advance, communicating the necessary measures to be taken and their costs”, revealed Karen Pittel at a press conference.
The researcher, from the ifo Institute (Leibniz Institute for Economic Research at the University of Munich) is one of the authors of the study “Watts Next: Securing Europe’s Energy and Competitiveness, Where the EU’s Energy Policy Should Go Now”, published today.
International researchers in the field of economics advocate an office similar to that created in Singapore and Taiwan, in this case for health issues. According to experts, this approach gave Tawain good results during the Covid-19 pandemic, because it allowed the country to be well prepared.
“When Russia invaded Ukraine, we were taken by surprise, although there had been signs for a few years that something might be about to happen”, pointed out Julio Saavedra, from the ifo Institute.
The study’s co-author believes that this new European entity should be able to anticipate not only energy crises, but also cyberattacks or other geopolitical threats.
“It’s a solution that doesn’t cost a lot of money and can be implemented. We shouldn’t be caught by surprise as happened in 2022,” he added.
“When we go through a crisis, we all talk about how we can increase security, be safe in the long term. But a year or two years after the crisis is over, no one remembers. What we need is a process, and a cabinet created with this purpose can help, help us understand how much we want to spend and invest in our security in different areas”, suggested Karen Pittel.
The researcher regrets that, in this case, there is “more talk about cuts than investment”.
The authors of the document for the EconPol Europe research network call for the need for greater cooperation at European level.
“Not only can switching to non-fossil energy sources reduce strategic dependency, but if done right, it can lower electricity prices and help the EU and its Member States achieve their climate goals,” he said. read in the 60-page document now available.
“Greater integration of European electricity markets and gas networks is essential to better balance regional needs”, points out the study.
Government price interventions should be avoided, the researchers argue, explaining that these measures reduce savings efforts and reduce investment incentives.
Short-term interventions can make it difficult to restructure the energy system in the long term. If they are nevertheless implemented, a balance must be found between measures to support families and companies.
The report recommends that EU governments create financial room for maneuver to be able to provide support in times of crisis, as it is necessary to promote a transition to a low-carbon economy.
This would not necessarily imply an increase in public debt, but rather a reduction in expenditure, for example, through the abolition of fossil fuel subsidies.
