Europe Today: EU energy prices soar as Spain's housing decrees face Congress vote

Name: Europe Today: EU energy prices soar as Spain's housing decrees face Congress vote
Uploaded: 2026-10-02T06:51:53+00:00
Duration: 20 min 2 s
Channel: euronews (in English)

00:14Good morning and happy Friday. It's October the 2nd. You're watching Euronews and this

00:20is Europe Today. Coming up, European consumers keep being pummeled by rising energy prices.

00:2812 EU countries reported new diesel price records as supply disruptions pushed the bloc's average

00:34to €2.24 a litre. That's compared with €1.59 before the Iran war. We'll speak to EU Energy

00:43Commissioner Juergensen. The student protests across France are getting increasingly violent.

00:49At least two schools were set on fire and a head teacher was severely injured. Security forces

00:55detained more than 600 people while dozens of police were wounded. The protests against budget

01:01cuts in education started last week. And the Spanish parliament will vote on two decrees today that the

01:09minority government under Pedro Sanchez approved earlier this week to tackle the housing crisis

01:14and protect tenants. Soaring rents, gentrification and the shortage of affordable housing have fueled

01:21social and political unrest for weeks. Welcome to the program. I'm Stefan Grober.

01:27The EU's energy chief has warned that volatility in the energy market is here to stay. And prices could

01:35get even worse. Dan Juergensen is urging European governments to use existing flexibility to ease the

01:42pain at the pump for millions of Europeans. That comes as the Trump administration presses EU countries

01:49to release millions of barrels from their emergency oil stocks. Maria Tadeo, our chief editor, spoke to the

01:56energy commissioner in Brussels in an exclusive interview.

02:00The situation is quite serious. The prices are already quite high and it's felt by our citizens and by our

02:08companies. Unfortunately, I also have to say that it is going to become probably even worse during the winter

02:16because we do not see any immediate solutions to the crisis in the Strait of Hormuz. And even when it

02:26opens, it'll take some time for that to have the effects that we want on the market. So unfortunately,

02:31we will see a pressure on fuels. So both oil and gas and diesel and jet fuels during the winter.

02:39What measures are you looking at and how quickly can they be implemented?

02:43So fortunately, there are things that can be done also on the short term. Most of these things needs

02:49to be adopted by the member states in the member states. That is, for instance, as we recommend

02:55lowering the tax on electricity. This will lower the costs of living for normal citizens and it will

03:02also help transitioning away from fossils into a more electricity driven economy. So this is just one

03:09of the examples that can be done. So as it stands, you do not see a big intervention coming

03:14from Brussels. Many things can be done from Brussels and via collective decisions in the European Union,

03:22and we have done so. For instance, a grid package and electrification plan. But most of those things

03:27are more structural changes. They are very, very necessary. But the things that work tomorrow or the day

03:32after tomorrow, that needs to obviously be something that's done nationally. And we have then provided

03:38the way for these decisions in Europe by setting up schemes so that you can give subsidies by setting

03:43up schemes so that, for instance, you can have social leasing of electric vehicles instead of combustion

03:48engine cars. We have a whole catalogue of things that's been provided as possibilities for member states

03:54that they can use.

03:55You sent a letter in which you focused on two things to European ministers, the storage levels

04:00and also asking for measures for as long as possible to reduce some of the demand for both gas

04:05and oil. Is that being answered? And will you at some point have to make that compulsory force a

04:11reduction in demand of energy?

04:13Yes, I also had a meeting with with ministers this week. And it's very clear that we are all very

04:22well

04:22aware that this is a crisis and things needs to be done. Now, it is a little bit different from

04:26country to country what member states choose to do. But clearly, demand reduction is one of the

04:33most important things that you can do.

04:34And even if these measures are mandatory or are not mandatory, at this point, would you consider

04:40to make them compulsory? If we see this escalation in prices, would you make them an obligation?

04:46There's no one size fits all solution here. There's not one silver bullet. Had there been,

04:50we probably wouldn't have used it. There's not. But there's a lot of things that you can do.

04:55And we have put forward both a catalog of things that can be done already tomorrow, but also new

05:00ideas that hopefully we will get the member states to support on how to electrify our economies faster,

05:08on how to make this shift from fossil into renewable energy much faster, on how to implement rules

05:16on energy efficiency much faster, because this will also mean that you use less of what it is

05:21that we are lacking right now.

05:23And when it comes to the storage, there are clear goals that have been set out in terms of the

05:27heating

05:27season and ahead of winter. The member states, however, they complain that there are two sources

05:32of tension. One is hitting the targets. But also, if you go to the market now, it comes with an

05:36additional bill. In your view right now, what is a priority to save the cash or actually still build up

05:42the storage? What we've done is we've coordinated the filling up of our storage facilities of gas

05:49all year so to make sure that the bills do not become too high for member states. But it is,

05:55of course, expensive when the gas prices are high and we need to strike a balance. I do think that

06:01what we've done by loosening the rules so that you don't have to fill the storage as much as you

06:05used

06:05to will alleviate some of this tension. But it is important for us to have these storages because,

06:11as I said, situations can become much worse.

06:15So you make the targets flexible, but you don't scrap them?

06:19No, we certainly don't scrap the targets. It's very important for our security of supply in Europe

06:24and for our security overall that we do have these targets.

06:29Do you see any scenario, the most stressed out scenario heading into the winter in which the

06:34European Union faces shortages of energy and that means lights out?

06:39So fortunately, we are not looking into a security of supply crisis. That would be extremely

06:45worrisome, of course. But I would like to warn that even though we don't lack fuel, it'll be there,

06:52we don't lack the gas, not to neglect the size of the problem, but because for the citizens or the

06:57companies that cannot afford it, it'll feel the same way. So if you cannot afford to adequately heat

07:02your home, it doesn't really matter that you could actually buy it out there in the market if you

07:07cannot afford it. So we do need to take this extremely serious.

07:10The energy market is reacting positively to reports that the U.S. is telling allies and forcing

07:15allies to release their diesel stocks. Is this going to happen and is the U.S. telling you release it

07:21and release it quickly? Will you do it?

07:23So we are discussing with all members of the International Energy Agency, not only the U.S.,

07:29on when is the right time to release? Because this is one of the opportunities that we have.

07:33We've used it before and it is likely that we will use it again. But this is something that we

07:37discuss, of course, in the IAEA. You are saying we're not doing this as a result of pressure from

07:43the U.S., but if we do it and you just said it is a possibility, it's in coordination with

07:47the

07:47International Energy Agency? It is, of course, a decision of each member state. Do they want to do

07:53this or not? We try and coordinate via the EU, of course, our positions in the IAEA. And we do

07:59this

08:01with member states and also other members of the IAEA that are not a member of the European Union.

08:05And this is something that is being discussed as we speak.

08:12EU Energy Commissioner Dan Jorgensen speaking to Maria Tadeo. For more on the latest price increase,

08:19let's bring in Osama Rizvi, Global Market and Product Strategist at Primary Vision, who joins me

08:24from Lahore, Pakistan. Good morning and good to see you. Good morning to you as well, Stephen.

08:31So energy prices in Europe are rising again. What is driving this latest increase and how concerned

08:38should consumers and businesses be? Well, as we spoke last time, I think this is just another

08:45continuation of the recent events. If you look at the data points, Stephen, there are some positives

08:50coming out because the recent figures show that flows through straight of Hormuz have recovered a

08:56little bit. They've recovered to 80 percent in some cases to their pre-war levels. But this will take

09:01some time if the benefit persists for that benefit to prickle down to the consumers. So my analysis regarding

09:08the consumers are suffering economically for the next few months still stands true, unfortunately. And

09:14recently, we have seen some refresh strikes as well, Russia, Ukraine, especially and, you know, refining sites.

09:21So refining is what matters because the products, diesel and other things, that is what we consumers consume.

09:26It is not the crude oil that we're consuming. So this needs to be looked very closely.

09:30We just heard from EU Energy Commissioner Jorgensen, who was sort of lukewarm on President Trump's idea

09:37to ask European countries to release some of their diesel reserves as he mulls a ban on diesel exports.

09:45Would releasing diesel reserves have the desired effect on the markets?

09:50Well, this is very interesting. I think of many consequences, what the recent war has given,

09:56you know, to the world is a sudden and painful realization of energy security. And it's still

10:01dependent upon the fossil fuels. So European reserves, 300 million barrels represents around,

10:06even if all of them are released, it will only cover around 10 to 11 days of the world's diesel

10:11demand.

10:12And the European countries also have to have around 90 days of diesel and other reserves to their

10:18at their home. And Trump's demand, which amounts to around 670,000 barrels per day,

10:24it already talks about around 40% of the diesel reserves being depleted. So I would not be very

10:30surprised at the European Energy Commissioner's remarks, because we are living in a world where

10:35each country, each man is for itself, right? This is the era of energy security. And I would not think

10:42that this is going to have a very significant impact on the global diesel prices.

10:47Interesting. How much of the current price pressure is coming from global oil and gas markets?

10:53And how much is specific to Europe?

10:56Well, I think two main hubs. So 20% of the refining capacity in Gulf is off, and around 1

11:04.2 million

11:05to 1.5 million barrels of exports are down when we consider Russia and Gulf. So these are the two

11:11main hubs that from where the pressure is originating from, Europe and Asian markets, on the other hand,

11:16are on the receiving end. When you look at Europe as well, you know, the policy lacunas or policy anomalies,

11:22we have seen that in the past few years, from 2009 until now, 30 refineries have already been closed or

11:28converted.

11:29So now, you know, this is giving a wake-up call that maybe we need to have the approach of

11:33energy basket in place,

11:35where fossil fuels and renewables coexist, and we stop, you know, pitching them against each other,

11:40or demonizing any form of energy. So this is what's going on.

11:46Europe has spent the past few years trying to reduce its dependence on Russian energy.

11:51And are we now seeing the costs of that strategy sort of feeding back into consumer prices?

11:58Definitely. And I think it's very difficult these days, actually, given the integration

12:04of global economy, that you can really just wean yourself off of anything. Of course,

12:09Europe has increased its gas exports from Norway. Norway provides a lot of gas to Europe. And then

12:14LNG from US. US has become the largest provider for LNG for Europe. But each of these countries have

12:20their own limitations as well. So in the time of crisis, you know, you need to look at China. China,

12:26as a principle, do not buy anything more than 15% to 20% when it comes to their energy.

12:32China is now

12:33considering Brazil as their export partner. The Canadian seaborne oil exports to China have increased

12:40more than 200% year-on-year basis. So they're not just relying on Iran. So we need to, I

12:46think,

12:47take a page out of their playbook and diversify our energy supplies.

12:52Very briefly, Osama, any advice to consumers?

12:57Just don't spend any extra and save as much money as you can and also buy gold.

13:03Great. Osama Rizvi, thanks for breaking it all down for us.

13:07Energy is one problem in Europe these days. Finding and keeping a place to live is another.

13:13In Spain, the housing crisis is becoming a major political test for Prime Minister Pedro Sanchez.

13:19The pressure is mounting both inside Parliament and on the streets. Congress is set to vote on

13:25two government-backed measures aimed at tackling soaring rents and protecting tenants. But Sanchez's

13:31coalition needs support from parties on opposite ends of the political spectrum, which at this point

13:37does not look likely. And the rejection could trigger unpredictable political consequences.

13:43As lawmakers prepare for today's votes, protests across the country demand even stronger action.

13:49Javier Iniguez in Madrid has more.

13:52The countdown begins for what is increasingly becoming one of the most consequential votes for Pedro

13:57Sanchez's second term in the Spanish government. And as you can see the pressure on the Spanish streets,

14:01like at the protest camp and Madrid's Puerta del Sol, when we find ourselves, it's not backing down.

14:06The Congress is voting this Friday on two laws to curb the housing crisis. The socialistic

14:10government needs a majority that includes both the right-wing Catalan Pro-Independence Party,

14:14Junts, and the far-left Podemos. The latter has already announced it will support both laws

14:19in Congress. This unfunding of the laws is widely seen as a political maneuver to at least get the first

14:23one approved. This one has been negotiated alongside the Catalan Party. Ingrads more protection

14:28abets evictions, an increase of taxing for tourist apartments and more guarantees for tenants,

14:33but it also gives a tax bonus for renters that has been widely criticized by BLF. The passing of

14:37the second law will be more complex. It only legislates on rental contracts and it would force landlords

14:41to compensate tenants with a minimum equivalent of two months' rent if the lease is not renewed,

14:46unless one of the parties gives previous notice, among other exceptions. Nevertheless,

14:49it is unlikely that Junts will grant support to the second one and even express discontent with

14:53the one they negotiated. The Tenants' Union leading the protest has already confirmed that although they

14:57back the laws that the government is trying to pass this Friday, the mobilization will continue.

15:01They have called for a protest in front of every town hall on Spain this Saturday,

15:05and some already talk of a general strike for wild service consider the current main problem for the

15:10Spanish citizens.

15:14A very excited Javier Iniguez reporting from Madrid. Thank you very much.

15:20Romania is on the front line of Europe's security challenge. Russian drone attacks on Ukraine are

15:25spilling into Romanian airspace and along the Black Sea, while Bucharest is warning of a broader

15:30campaign of cyber attacks, sabotage and other forms of hybrid warfare. Romania is calling for stronger

15:37NATO deterrence on the eastern flank and closer cooperation among European allies. So how serious is the

15:44Russian threat, especially the one posed by drone attacks? Earlier I put this question to Romanian Foreign

15:50Minister Oana Sylvia Toyou. It's definitely an increase in the security risks. We have seen this year,

15:59for example, a free-fold increase compared with previous years. It's though the spillover effect of an

16:05increased number of attacks that Russia has in targeting Ukrainian infrastructure at our border,

16:11the ports, crossing points at the border, and so on. It's Russia's strategy to try to create chalk points

16:20on Ukraine's economy. And that is why, for example, something that we've done this week in New York and

16:26what we aim to build is again something similar with the solidarity lanes. We have had the Black Sea,

16:32a ceasefire, a moratorium that would enable us, especially through the port of Constanza,

16:38to support the proper commercial lanes in the Black Sea, together with Turkey, Bulgaria, Ukraine,

16:44of course. Now, you have called for a stronger protection of NATO's eastern flank. What exactly

16:50is it that you want from European allies? Is it air defense? Is it more troops? Well, it's not just

16:58what we

16:58want or what I want is rather what we all collectively need. We're talking with partners

17:02from the United States in their review process of their European posture to make sure together,

17:10when we look at the eastern flank, when we look at the Black Sea, when we look at Romania's capabilities,

17:16we ensure the fact that together we need a stronger deterrence and defense, not just for our border.

17:22It's also when we protect our border. It's also the Schengen border, NATO, the European Union's

17:28border. How concerned, Minister, are you about Russian hybrid warfare, the sabotage, the disinformation,

17:38the cyber attacks against Romania and other EU countries? The cyber hybrid interferences of Russia

17:48are actually their most assertive part directed to countries that are members of the European Union,

17:54the cyber attacks. And we have proposed for the first time a listing of some individuals that we have

18:03analyzed to be part of the cyber attacks that have targeted Romania. I've spoken with a lot of

18:10my counterparts in terms of the hybrid interferences they see with specific attacks on ammunition

18:17in military equipment factories, or there's a lot of concern on our capacity to protect from hybrid

18:25attacks. The undersea cables, railways in Poland have been the target of hybrid attacks and so on.

18:32But it is absolutely necessary both at NATO and at the EU level that we increase not just our analysis

18:39capacity, our coordination, but also our capacity to respond in terms of protecting ourselves from

18:48this type of hybrid interferences.

18:53Romanian Foreign Minister Oana Silvia Toyu, one of many top guests we had this week,

18:58speaking exclusively to Euronews. And that does it for us today. As always, stay tuned for more

19:04news on Euronews and Euronews.com. Thank you for watching. I'm Stefan Grobe,

19:09Maeve McMahon will be here on Monday. Enjoy your weekend, take care and see you soon.

19:43Bye.

Europe Today: EU energy prices soar as Spain's housing decrees face Congress vote

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