European Commission President Ursula von der Leyen has delivered the annual state of the union address to the European Parliament, where she announced what lies ahead for the Continent.
Interest in her speech was greater than ever this year, with Russia invading Ukraine and gas prices reaching an all time high.
Dressed in yellow and blue — the colours of the Ukrainian flag — Ms von der Leyen spoke about the situation in Ukraine and its effect on the European Union.
Guest of honour Olena Zelenska, Ukraine's First Lady, was present in parliament during the speech and received a standing ovation from its members.
"Ukraine stands strong because people like your husband, President Zelenskyy, have stayed in Kyiv to lead the resistance – together with you and your children, dear First Lady," Ms von der Leyen told Ms Zelenska.
"You have given courage to the whole nation. And we have seen in the last days the bravery of Ukrainians paying off.
"The future of Ukraine begins at its schools," Ms von der Leyen said as she announced a collaboration with with the First Lady to support the rehabilitation of damaged schools with 100 million euros.
In March Ukraine was also successfully connected to the European electricity grid, which means that Ukraine is exporting electricity to Europe.
Ms von der Leyen announced that Ukraine will be brought into the European free roaming area and that it will receive seamless access to the Single Market.
'Putin will fail and Europe will prevail'
She continued on to Russian President Vladimir Putin and Europe's dependency on Russian gas.
"This is the time for us to show resolve, not appeasement," said Ms von der Leyen, who was set to travel to Kyiv later on to meet Mr Zelenskyy. "We are in it for the long haul."
"And I stand here with the conviction that with courage and solidarity, Putin will fail and Europe will prevail," she told the assembly in Strasbourg, France.
"Russia's financial sector is on life-support," she said, adding that nearly one thousand international companies have left the country.
"The Russian military is taking chips from dishwashers and refrigerators to fix their military hardware, because they ran out of semiconductors. Russia's industry is in tatters."
'In these times, profits must be shared'
Ms von der Leyen also spoke about the impact of the war in European households and businesses.
"Making ends meet is becoming a source of anxiety for millions of businesses and households," she said, proposing measures to cap revenues from low-cost electricity generators and force fossil fuel firms to share the profits they make from soaring energy prices.
"In these times it is wrong to receive extraordinary record revenues and profits benefiting from war and on the back of our consumers. In these times, profits must be shared and channelled to those who need it most," she said.
Although individual countries have already passed subsidies, tax cuts and other means to relieve households and businesses with the high energy prices that drive record inflation, it seems not to be enough.
Money must be found outside of national budgets to provide more help to those struggling to pay their electricity bills.
That’s why the European commission wants to tap the profits of power producers using oil, gas and coal as well as renewables and nuclear power.
It estimates that some companies are making five times their usual profits.
“These companies are making revenues they never accounted for, they never even dreamt of,” Ms von der Leyen said.
“In these times, it is wrong to receive extraordinary record revenues and profits benefiting from war and on the back of consumers.
“Our proposal will raise more than 140 billion euros for member states to cushion the blow directly,” she said.
Most of the money would come by setting a price cap on electricity produced through renewable energy sources and nuclear power of 180 euros per megawatt hour, less than half the current price.
EU countries would also collect a “solidarity contribution” from oil, gas and coal refineries earning 20 per cent more profit than they averaged over the last three years.
'The next winters will be difficult'
With Russia tightening the natural gas taps, demand for gas and electricity also must be reduced, even if reserves of the fuel are on average 84 per cent full across the EU.
Capping prices will not draw down use, so the European Commission also wants people to consume less, particularly during peak hours.
The commission's goal is to reduce electricity consumption in the bloc by at least 5 per cent during peak use hours.
“The next winters – not just this one – the next winters will be difficult, make no mistake about that," commission Executive Vice-President Frans Timmermans told reporters after the plan was unveiled.
"But I am confident that these measures will bring progress.”
ABC/Wires
