08 February 2023
Solidarity on Solidarity Levies and a Choice of Energy Mix
The Council of the European Union has adopted a series of increasingly controversial measures to deal with the energy crisis. These measures - based on the little used Art 122(1) TFEU- are in part linked to the Commission’s REPower EU plan, which aims to end Europe’s reliance on energy imports from Russia and accelerate Europe’s clean energy transition away from fossil fuels towards renewable energy. With each successive measure the powers of the Commission have expanded to intervene on the supply as well as the demand side of Europe’s electricity and gas markets. Continue reading >>
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01 February 2023
The rise of Article 122 TFEU
The last decade, and especially the past year, saw a marked increase in the EU’s reliance on Article 122 TFEU. This legal basis was used to adopt a series of measures aimed to address the health and energy crises following the COVID pandemic and Russia’s invasion of Ukraine. At least two of those measures are now subject to direct challenges before the General Court and the Court of Justice. From a constitutional perspective, however, it is unfortunate that these two cases will probably not invite the Courts to address the more fundamental constitutional questions raised by the Council’s recent recourse to Article 122 TFEU. Continue reading >>03 October 2022
The Wind Doesn’t Fall – it Drops
Excessiveness can be actually measured in many ways, but it is always time sensitive, and path dependent. As the Global financial crisis in 2008 has clearly demonstrated, excessive profits by banks in the first decade of the century were by far offset with the immense losses coming after, and the Governments were urged to grant subsidies and grants to the very same companies they overtaxed just some years before. The conclusion in this respect is that any judgment of excessiveness depends on the timespan considered. Both the Italian and the European legislator seem to have forgotten this aspect. Continue reading >>
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09 September 2022
No Longer Feeling the Energy
On 25 August 2022, the government of Poland surprised all when it sent a previously approved (but unannounced) bill on the termination of the Energy Charter Treaty (ECT) to the State’s lower chamber. The ECT is the biggest multilateral investment treaty in the world and the only one to exclusively regulate cooperation in the energy sector. Continue reading >>
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26 August 2022
Sharing the Cost of the Crisis
In late July, the two political parties supporting the Spanish Government (the socialist party and the leftist Podemos) presented a proposal for approving a law on the windfall profits of banks and large energy companies in Parliament. This is supposed to tax companies earning extra profits from the recent price increase in energy and the financial sector which was slightly affected by the increase in inflation but will have a considerable profit from the rise of interest rates. The bill could serve as an example for other European countries. Continue reading >>
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