The war in Iran hits Europe: how to mitigate the impact with one day of teleworking a week, cheaper public transport and subsidies

The war in Iran and the subsequent blockage of the vital Strait of Hormuz, through which a fifth of the world’s oil passes, have caused a global energy crisis of a magnitude perhaps not seen since 1973. And while Asia has taken the brunt of the impact, the European Union It is not coming out unscathed.

A situation that causes a greater impact on the Old Continent, explains the expert, because although it is known that 20% of the world’s crude oil circulates through the Strait of Hormuz, less widespread is that 5% of this goes to Europe (and the other 15% to Asia), making it one of the bloc’s most important sources of supply despite its attempts to diversify suppliers.

Faced with this scenario, the European Commission is proposing a series of measures with which it seeks to alleviate the impact of the energy shortage in the bloc, among which initiatives to reduce consumption stand out. Moreno details that “it has been recommended to lower the maximum speed on the roads, encourage the use of public transportation, reduce its rates, establish car-free days and look for alternatives to air transportation over short distances.”

However, the most ambitious measure is the promotion of teleworking. “What the European Commission is proposing is to establish one mandatory teleworking day per week, both in the public and private sectors. This is the first time that this has been raised.“, highlights Moreno.

However, Brussels’ response also shows the limits of the bloc, since these stipulations of the European Commission “are not being taken as measures directly, but rather recommending that the Member States take them,” Banús clarifies. That is, execution remains in the hands of national governments.

Added to these measures to reduce consumption are possible subsidies to affected sectors, such as transport or agriculture, in a context where community rules could be made more flexible.

“It should be noted that under Community law, subsidies are not permitted, except in certain cases,” he highlights. “So, considering that subsidies for certain sectors, such as agriculture or transport, may be compatible with community law, since that is where the European Commission can intervene more.”

Some countries have also begun to act independently, with Germany, for example, evaluating direct aid of one thousand euros to workers to compensate for the increase in transport prices.

“It is a highly debated measure and it is still not known whether it will be executed or not,” he adds. “Here the European Commission has to react because its goal is always for the states to coordinate with each other and remember that everyone is in the same boat.”.

Additionally, the non-binding nature of the recommendations implies that there could be uneven application in the bloc. “Each of the 27 member states will have to decide,” recalls Moreno, who adds that this proposal is still a draft and will have to be evaluated by the member nations when they meet in Cyprus on April 22.