Brussels’ Plan Is a Death Blow to Europe's Economy

The whole world is watching with bated breath what will happen in the Strait of Hormuz. According to energy law expert Mate Toth, we are on the brink of a massive spike in oil prices. Meanwhile, Brussels seems not only to lack influence over current events, but its ideology-driven moves are exacerbating the situation.

Nothing illustrates this better than the fact that, despite global developments, during Monday’s meeting of energy ministers in Luxembourg  the focus was remained on accelerating the phase-out of Russian energy.

The meeting had clearly been prepared in advance, with no adjustment to the new reality. So not only is Europe not a key player in current events, it is flying blind,

Mate Toth underlined.

"The right decision would be to immediately halt the effort to cut off Russian energy, especially at such a critical moment when we don’t even know what’s coming in the Middle East,” he said, adding that even without Middle Eastern events, this strategy spells trouble for Europe and its economy.

The decisions being made in Brussels do not serve European interests in any way. For example, the EU is mandating a full phase-out of Russian natural gas, despite the fact that this puts not only Hungary but also Slovakia — which receives all its gas through Hungary — in a difficult position. Even some of Ukraine’s gas comes through Hungary, the expert highlighted.

Mate Toth warned that replacing Russian gas with spot market purchases instead of long-term contracts would immediately raise prices by at least 20 percent. Moreover, long-term contracts include massive penalties and compensation clauses for non-fulfillment, which would burden EU member states.

What Brussels should do now is immediately stop these incredibly self-destructive ideas that are essentially delivering a death blow to the European economy,

Mate Toth emphasized.

He added that fast-tracking Ukraine’s EU accession is another such dangerous idea.

Just think about it: Ukraine’s GDP is half that of Serbia’s, and Serbia has been waiting at the EU’s doorstep for twenty years,

he pointed out.

What is more, these ideas not only harm EU member states, but "as a kind of side effect, also damage the EU's institutional and legal framework." Brussels is undermining its own rules by attempting to push through the phase-out of Russian energy carriers as a trade policy measure, bypassing Hungary. The EU's founding treaties clearly state that decisions in common energy policy can only override member states’ authority if they serve the energy security of the entire EU — and clearly, that is not the case here, the energy lawyer explained.

Article 194 also states that the EU cannot infringe on the right of member states to determine their own energy supply and sources, Mate Toth added, emphasizing that the Von der Leyen–Zelensky plan violates this as well.

Brussels would have to make a complete U-turn  in order to avoid destroying both its member states and the EU as a legal and institutional entity. Right now, it is pushing through ideology-driven decisions at such a cost that it threatens to collapse the EU’s entire legal and institutional system. It’s preparing to override its own decision-making mechanisms, its operating rules — even the rules in the founding treaties,

Mate Toth emphasized.
Cover photo: The Strait of Hormuz (Photo: AFP)