European Commission President Ursula von der Leyen said on Wednesday that Europe’s electricity market needed deep reforms as she unveiled emergency temporary measures to tackle energy costs and soaring inflation, including raising more than $140 billion from energy companies for struggling member states.
The current electricity market “is not fit for purpose any more,” Ms von der Leyen told legislators in Strasburg, during her much-anticipated State of the Union address. “It is not just for consumers any more.”
The European Commission is proposing a cap on companies that make electricity from renewables, such as wind and solar, due to the EU’s system of pricing which allows for all electricity producers to be paid the same price for the power they are selling. The consequence of that system is that prices most often match those of gas, which have soared since Russia's invasion of Ukraine.
Czech Minister for European Affairs Mikulas Bek said on Tuesday that natural gas prices had reached a new high of €340 per megawatt hour in August, compared to €40 a year ago.
The EU commission is also requesting that fossil fuel electricity producers contribute to alleviating the crisis. “They have to pay a fair share — they have to give a crisis contribution”, said Ms von der Leyen.
Her proposal aims to “raise more than €140 billion for member states to cushion the blow directly.”
No gas price caps
“Don’t get me wrong,” the EU Commission chief said. “In our social market economy profits are OK, they are good. But in these times it is wrong to receive extraordinary record revenue benefiting from war on the back of our consumers. In these times, profits must be shared and channelled to those who need it most.”
Ms von der Leyen said that the influence of gas on the price of electricity should end. “That’s why we will do a deep and comprehensive reform of the electricity market.”
The EU Commission President had to shelve a proposal on capping Russian gas prices completely following reported opposition from some European countries, who fear that Russia will completely stop exporting the little gas it is still sending to the EU.
Some countries have also called for a global cap on gas prices, not just on Russia’s.
“We need to keep working on lower gas prices. So, on one hand, we have to ensure the security of supply. On the other hand, we have to ensure global competitiveness,” said Ms von der Leyen.
The EU commission will develop with member states a “set of measures to take into account the specific nature of [its] relationship with suppliers, ranging from unreliable suppliers such as Russia, to reliable friends such as our Norwegian friends for example.”
She said that she had agreed with Norwegian Prime Minister Jonas Gahr Store to set up a task force to examine lowering gas prices in a “reasonable manner”.
The EU’s efforts to diversify its gas sources since February contributed to Russian gas imports to plummet from 40 per cent of the continent’s gas imports last year to 9 per cent today.
Ms von der Leyen highlighted the EU’s need to wean itself away from fossil fuels and announced the creation of a European Hydrogen Bank that aims to invest €3 billion to build the future hydrogen market.
She admitted to past mistakes. “In the 1970s, the world faced another fossil fuel crisis”, she said. “We did not get rid of our dependency on oil. And worse, fossil fuels were even massively subsidised. This was wrong, not just for the climate, but also for our public finances, and our independence. And we are still paying for this today.”
'Unshakeable' solidarity
Ms von der Leyen started her speech by addressing the situation in war-torn Ukraine, speaking at times directly to the wife of Ukraine’s President Volodymyr Zelenskyy, Olena Zelenska, who was guest of honour.
“Europe’s solidarity with Ukraine will remain unshakeable,” said Ms von der Leyen, who is scheduled to travel to Kyiv later on Wednesday to discuss Ukraine’s access to Europe’s single market.
“Never before has this parliament debated the state of our union with war raging on European soil,” she added.
So far, the EU has provided over €19bn in financial assistance to Ukraine, excluding military support, and imposed punitive sanctions on the Russian economy.
Ms von der Leyen announced a further €100m to support the rebuilding of Ukrainian schools destroyed in the war.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
Indika
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
