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News 02 October 2023

Top story of the week: European Commission sets ambitious goals ahead of Granada leaders’ Summit


On 27 September, the European Commission adopted a communication preceding the upcoming EU Summit scheduled in Granada, Spain, on 6 October. It follows up on the Versailles Declaration from March 2022, which assessed the Russian aggression against Ukraine and emphasised the need to enhance defence capacities and reduce the bloc's energy dependencies. Addressing the outstanding challenges towards achieving resilience, sustainability, and competitiveness, the European Commission identifies various areas requiring further action, ranging from the single market to security and energy.

Regarding energy, the European Commission acknowledges a significant reduction in Russia's role in supplying gas to member states, facilitated by REPowerEU's role in diversifying supply and boosting renewable energies. However, it identifies lingering bottlenecks, such as implementing the Electricity Market Design (EMD) Reform and modernising the EU electricity grid for enhanced interconnections and easier access to renewables. With the European Parliament adopting its position on the EMD, member states aim to reach a common position during the Energy Council on 17 October, initiating trilogues. Yet, contentious points persist, including support for existing nuclear plants.

To expedite the progress towards achieving the EU's 2030 climate goals, the communication also highlights the significance of finalising two other components of the Green Deal Industrial Plan—the Critical Raw Materials Act and the Net Zero Industrial Plan. The recently enacted Chips Act is then identified as crucial for achieving an integrated and resilient Single Market. Emphasising the necessity to leverage both public and private funds, the Strategic Technologies for Europe Platform (STEP) is finally highlighted as a means to achieve these objectives.