European Union countries are at risk of squandering billions of euros in energy aid by failing to direct support to the households and industries that need it most, as conflict in the Middle East drives oil and gas prices sharply higher. European Commission President Ursula von der Leyen issued the warning Wednesday, urging member states to learn from costly mistakes made during the 2022 fuel crisis.
The U.S.-Israel war, combined with retaliation from Iran such as choking the Strait of Hormuz, is costing the EU almost 500 million euros ($600 million) a day, raising prices at the pumps and fears of a jet fuel shortage within weeks. The crisis threatens to deepen economic hardship for working families already struggling with the cost of living, while exposing the vulnerability of European economies dependent on imported fossil fuels.
Lessons from Past Mistakes
Von der Leyen told EU lawmakers in Strasbourg, France, that the bloc must avoid repeating the errors of the fourth year of the 2022 fuel crisis, when Russia used its energy might against European countries to undermine their support for Ukraine. "More than 350 billion euros were spent on untargeted measures and this had a huge impact on member states finances," she said. "So let us not make the same mistake again, and let's focus our support where it matters most."
The untargeted spending during that crisis meant billions flowed to households and businesses that did not require assistance, draining public coffers while failing to adequately protect vulnerable populations from energy poverty. The Commission president's remarks underscore growing concern that without proper targeting, emergency aid will once again benefit those least in need while leaving the most vulnerable exposed.
Path to Energy Independence
Von der Leyen emphasized that the bloc must end its reliance on supplies from outside the world by making better use of renewable sources like wind and solar, as well as nuclear power. "Our over dependency on imported fossil fuels makes us vulnerable," she said. Since the war started in 2022, Russian gas imports into the 27 nations have fallen from 45% to 12% last year. Coal imports were banned by sanctions, and oil imports shrank from 27% in 2022 to 2%, with only Hungary and Slovakia continuing to buy from Russia.
The Commission president said the impact of the Iran war "may echo for months or even years to come" and that the path to energy independence lies in "homegrown, affordable, clean energy supply from renewables to nuclear." She urged EU countries to use more electricity generated by renewable sources and nuclear sources to power transport and planes, heat homes, and undercut the dependency on fossil fuels in industry. Electricity makes up less than a quarter of the bloc's energy consumption.
Crisis Could Deepen
EU Energy Commissioner Dan Jørgensen warned last week that the Iran war has not just produced "a short-term, small increase in prices. This is a crisis that is probably as serious as the 1973 and the 2022 crises combined." He said Europe has been forced onto the defensive and has little control over events. "Even in a best-case scenario, it's still bad," Jørgensen said, adding, "Whether or not we will be in a security of supply crisis is primarily a result of what goes on in the Middle East. What we can do is to try and prevent, and limit" the damage.
Why This Matters:
The energy crisis exposes how vulnerable households and small businesses bear the greatest burden when governments fail to target aid effectively. With the EU losing almost 500 million euros daily to the Iran war's impact on energy markets, untargeted spending risks depleting public resources needed for social safety nets, healthcare, and education while doing little to protect those facing energy poverty. The crisis also highlights the urgent need for collective action on renewable energy infrastructure and stronger public investment in alternatives to fossil fuels. Without coordinated policy that prioritizes vulnerable communities and accelerates the transition to clean energy, European families will continue to face price shocks driven by geopolitical events beyond their control, deepening inequality and undermining economic security for working people across the continent.