EU Foreign Commissioner Kaja Kallas calls on European countries to send more navy ships to the Red Sea, following Italy's example. Since the Houthis took control of the Bab el Mandeb strait this month, the threat to commercial shipping there has increased sharply.
"If we do not intervene, the economic consequences will be disastrous," warned Italian Defense Minister Guido Crosetto. He said he has no patience for "European bureaucracy" and therefore decided to send ships there himself.
The increased threat in the Red Sea comes on top of the ongoing blockade of ships in the Strait of Hormuz. Italy is, more than other European countries, heavily dependent on the import of fossil fuels from the Gulf region, so in that respect the alarmist words of Minister Crosetto are not surprising.
But the energy crisis is already being felt everywhere in Europe and with the escalating problems with the Houthis "high energy prices will likely continue for a while," says Lucia van Geuns, energy expert at HCSS.
This raises the question: what can, or must, Europe do to curb energy prices and guarantee energy security in the future?
'Strategy is missing'
In recent months, European countries have taken individual measures to ease the burden on citizens. These ranged from excise or VAT reductions on fuel to the introduction of a price cap. Measures that, according to experts, do not help the people who need it most and do not reduce the demand for fossil fuels.
"A patchwork of policies," analyst Van Geuns calls the measures. "A clear European strategy is missing." It is an attitude that reminds her of the gas crisis in 2022, after the outbreak of the war in Ukraine. The Netherlands and Germany then quickly adapted their ports to make them suitable for the import of liquefied gas from the US, but that was it.
"You would hope that European countries would learn from that and join forces to become more resilient to such crises. But I do not see that happening." According to Van Geuns, it fits into a pattern of "reactive policy" within the EU.
New collaborations
Energy expert Michel don Michaloliakos from the institute GeopolitiekNu also finds that united EU action is long overdue. He particularly states that Europe "shines in absence" when it comes to forging new collaborations with energy-producing countries. Countries like Saudi Arabia, the Emirates and Iraq are already working on alternative oil and gas routes that can bypass the Strait of Hormuz.
Yesterday, the US announced billions in investments in these projects in the Middle East. Europe would do well to follow this example, says Don Michaloliakos. "The EU should be at the table when redrawing those energy routes, without completely shifting dependence. We have seen that countries like Russia, Iran and sometimes even the US try to blackmail us with their energy supplies. You do not want to be the loser again in a few years because you depend on one other country."
Buffers and energy transition
Energy expert Van Geuns adds as a caveat that the influence of EU countries on projects in the Middle East is very limited. Moreover, the oil companies of those countries conclude contracts with European companies, not with governments. What European governments can do, however, is invest in their own energy infrastructure and accelerate the energy transition.
By the first, Van Geuns means creating buffers to absorb risks. "For oil and oil products, this is organized in Europe through the IEA's strategic oil reserve, but for gas, that strategic reserve does not yet exist."
Work is currently underway on this, both in the Netherlands and at the European level, says Van Geuns. "So that in the next emergency, such as a war, or if the US suddenly decides to stop exporting gas, we have sufficient emergency stock. That costs money, but it is an insurance we must build in."
"But the most important thing is of course accelerating the energy transition," Van Geuns continues. "The more energy we can generate ourselves, the less vulnerable we are to geopolitical tensions."