Brussels proposes billions for energy projects after gas crisis

The European Commission unveiled proposals Wednesday for 3.5 billion euros (4.6 billion dollars) of energy projects to cut dependence on Russian gas and boost the economy, but the plan was swiftly panned by member states.

Reducing the EU’s dependence on Russian gas piped through Ukraine has become a top priority for the bloc since a standoff between Moscow and Ukraine at the start of the year left many countries without gas in the dead of winter.
“We need to learn the lessons of the recent gas crisis and invest heavily in energy,” European Commission chief Jose Manuel Barroso said in a statement.

The money would be drawn from unspent funds in the EU budget and is part of a wider five billion euro package aimed at reviving Europe’s recession-hit economies.

However a meeting of EU ambassadors in Brussels turned into a concerted criticism of the scheme, according to diplomatic sources, with many balking at the prospect of financing such long-term projects at a time of economic crisis.

Several delegations questioned the capacity of the proposals to have a real impact on the economy.

AFP