European Commission President Outlines EU Policy Shifts as Middle East Crisis Drives Energy Strain
European Commission President Ursula von der Leyen warned Monday that the escalating Middle East crisis, including the closure of the Strait of Hormuz, is causing major economic and security harm to the European Union, as leaders prepare emergency and long-term measures."The restoration of the freedom of navigation is of paramount importance for us," von der Leyen said, adding that continued instability, including strikes on Lebanon, risks derailing broader diplomatic efforts.She called on all parties to respect Lebanon's sovereignty and implement a full cessation of hostilities.The European Commission said it is mobilizing emergency assistance through its ReliefEU reserves to support Lebanese civilians, while stressing that humanitarian aid cannot substitute for a lasting peace.Von der Leyen said the crisis has underscored the interconnected nature of global security, warning that instability in one part of the region threatens wider consequences. "You cannot have stability in the Middle East or the Gulf while Lebanon is in flames," she said.The economic impact has been immediate and severe. Since the start of the conflict 44 days ago, the EU's fossil fuel import bill has risen by more than 22 billion euros ($25.87 billion), without any increase in energy supply, she said, highlighting the bloc's vulnerability to external shocks.Even if hostilities end soon, disruptions to energy flows from the Gulf are expected to persist, prompting the Commission to prepare a package of measures to be presented at the upcoming European Council meeting in Cyprus in April.Among immediate steps, von der Leyen stressed the need for stronger coordination among member states, including joint approaches to gas storage, coordinated oil stock releases, and safeguards to protect the EU's single market.She pointed to the bloc's earlier joint gas purchasing platform during the last supply shock, which aggregated tens of billions of cubic meters of demand, as a model to build upon.The Commission is also working on targeted, temporary support measures to shield vulnerable households and industries from high energy costs, alongside plans to relax state aid rules to allow governments to assist the most exposed sectors.Reducing energy demand will form a third pillar of the response, with a focus on efficiency improvements such as building renovations and industrial upgrades.Beyond immediate actions, von der Leyen outlined structural reforms to lower energy costs. These include adjustments to the EU's emissions trading system, as well as upcoming legislative proposals on electricity taxes and grid charges.She said the crisis reinforces the risks of dependence on fossil fuels, calling it the second such shock in recent years. "We are paying a very high price for our overdependency," she said, warning that fossil fuels are likely to remain the most expensive energy source for Europe in the years ahead.At the same time, von der Leyen emphasized the EU's growing reliance on domestically produced renewable and nuclear energy, which now accounts for over 70% of electricity generation.She called for faster expansion of clean energy, improved grid infrastructure, and greater storage capacity to avoid waste and improve resilience.The Commission will also accelerate efforts to electrify the economy and reduce reliance on imported fuels, including a forthcoming electrification strategy and new targets to boost progress.To support the transition, von der Leyen urged member states to make fuller use of existing EU funds and announced plans to convene an investment conference to mobilize private capital for energy infrastructure, including grids, storage, and batteries.