EU Leaders discuss Poland, energy prices and migration

The Taoiseach, Micheál Martin, travelled to Brussels yesterday, joining leaders of the 27 Member States for a two day EU Summit. The three main items on the agenda are soaring energy prices across Europe, Poland’s continued rejection of the primacy of EU law and the tricky issue of migration.

As regards energy, the Czech Prime Minister Andrej Babiš raised concerns about the EU’s Emissions Trading System (ETS), set to be extended to shipping under the #FitFor55 package. He argued that speculation on the EU’s carbon price has caused the spike in prices across Europe and after lengthy discussion it was agreed that the Commission would study the ETS market with the European Securities and Markets Authority, as well as the functioning of the gas and electricity markets.

Leaders disagree on whether or not the electricity market should be reformed but separately, French President Emmanuel Macron is engaged in a major campaign to have the Commission classify nuclear as a green energy source in its green taxonomy. As a ‘home-grown’ energy source, the French argue that it would pursuing energy independence would improve the EU’s strategic autonomy.

The Polish question remains unresolved. Earlier this month the Polish Constitutional Tribunal, considered illegitimate by its critics, ruled that certain provisions of EU treaties are incompatible with the Polish constitution. 

Yesterday, the Taoiseach said Poland’s attitude was a “slap in the face” to the other Member States who are net contributors to the RRF and that they had “crossed a line”. Poland is set to receive €24 billion in grants and €34 billion in loans under the Commission’s Recovery and Resilience Facility.

Not to be deterred, Polish Prime Minister Mateusz Morawiecki, with the support of Hungary, said he would not give in to EU “blackmail”. Hungary’s Prime Minister Viktor Orban suggested that the EU institutions were exceeding their powers and that other Member States were mounting a “witch hunt in Europe against Poland”.

The European Parliament for its part has commenced preparation of a lawsuit against the European Commission over its failure to act against Poland, though it’s not one that they would be expected to win. 

European Parliament President David Sassoli said “EU Member States that violate the rule of law should not receive EU funds. Last year, Parliament fought hard for a mechanism to ensure this. However, so far the European Commission has been reluctant to use it.”

The mechanism in question is the ‘conditionality mechanism’, which should allow EU funding to be withheld from a Member State that is not respecting the rule of law if it can be shown to affect the EU’s financial interests.

The discussion is set to turn to the ever-sensitive issue of migration later today, in particular the situation at the EU’s eastern border with Belarus.