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EU Leaders to Discuss Electricity Price Reforms at March Summit
European Union leaders will meet in March to explore measures aimed at reducing electricity prices, with options including decoupling electricity from gas costs and addressing the rise of negative energy prices, where producers effectively pay consumers for surplus power.
Energy-intensive industries such as steel, cement, and chemicals have long complained about high electricity costs, which have forced the closure of hundreds of production sites across the EU. Since February 2024, 101 chemical plants have shut down, resulting in the loss of 75,000 jobs and 25 million tonnes of production capacity. Electricity prices in the EU now remain roughly double those in the United States, raising concerns over the bloc’s industrial competitiveness.
European Commission President Ursula von der Leyen and European Council President António Costa have both acknowledged the urgency of the issue. In March, Brussels plans to consider revisiting the current pricing system, in which electricity costs are linked to gas prices. Spain and Portugal have long called for reform of the market design, aiming to improve connectivity with the rest of Europe and address competition concerns. Austria and the Czech Republic have also criticized soaring energy costs, calling for urgent solutions.
The EU’s merit order system, which sets electricity prices based on the most expensive resource needed to meet demand, has contributed to high industrial costs. In 2025, renewable energy averaged €24 per megawatt-hour, nuclear €52, and gas €100. Von der Leyen said that leaders held “intense discussions” on whether adjustments to the system were needed to improve affordability.
The EU has introduced mechanisms such as Contracts for Difference and Power Purchase Agreements to complement the merit order system. These measures include caps and floors and are sometimes backed by state guarantees, but they have not fully resolved the gap between EU electricity costs and international competitors.
The European steel industry, Eurofer, welcomed von der Leyen’s renewed focus, noting that even a single fossil-fuel plant can determine the price for all electricity, inflating industrial bills. Eurofer warned that high electricity costs are delaying investment and the transition to green technologies.
Negative energy prices are also shaping the debate. Oversupply from renewables can force generators to pay the grid to accept excess power, a phenomenon Council President Costa said highlights the need for better interconnections and technical solutions.
Industry experts say expanding storage and demand-side management is key to reducing volatility. Tinne Van der Straeten, CEO of WindEurope, called for greater investment in grid infrastructure and energy storage to ensure that companies can use renewable power when it is abundant. Catarina Augusto of SolarPower Europe added that scaling up battery storage tenfold by 2030 and improving flexibility in energy systems is essential to prevent waste and stabilise prices.
With electricity costs threatening industrial competitiveness and green transition goals, EU leaders face pressure to implement practical reforms at the March summit.
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Deadly Storms Sweep France and Spain, Leaving Three Dead and Dozens Injured
Severe storms have claimed three lives across France and Spain and caused widespread disruption, with flooding and high winds affecting thousands. In France, the aftermath of persistent winter storms continued to challenge emergency services on Sunday, particularly in the southwest, where rivers burst their banks and roads and homes were flooded.
The country has experienced almost a month of continuous weather alerts, with much of the territory under orange or red warnings. According to Météo-France, this marks an unprecedented period of extreme conditions. “For 30 days we have been in continuous orange or red alert somewhere on the national territory,” Lucie Chadourne-Facon, director of Vigicrues, told local media. “That is 81 departments in alert simultaneously for 154 rivers, so we have exceeded all our records.”
Chadourne-Facon noted that soil saturation has reached record levels, limiting the land’s ability to absorb rainfall. “We are facing a generalised flood situation across the entire country because all the soils are saturated everywhere,” she said. The Garonne River in southwestern France broke its banks, causing severe flooding and property damage in affected areas.
The storms have so far claimed two lives in France. A government spokesperson, Maud Bregeon, reported that one person died on Thursday in the Landes department and a second in Tarn-et-Garonne on Friday, both linked to Storm Nils. Dozens more have been injured in extreme-weather-related incidents.
Meanwhile, Spain faced its own challenges as Storm Oriana swept across the country over the weekend. Torrential rain and winds reaching 166 km/h disrupted trains, public transport, and daily life across eastern, northern, and southern regions, including the Basque Coast, Valencia, Mallorca, Andalusia, and Barcelona in Catalonia.
Emergency services in Spain evacuated more than 3,000 people, with authorities issuing a red alert in the province of Castellón as “hurricane-force” winds tore through the region. Social media footage showed trees uprooted and emergency personnel responding to incidents across affected areas.
The storms have left authorities scrambling to manage both the immediate dangers and ongoing recovery efforts. In France, flood agencies have been operating around the clock for the past 30 days to respond to emergencies, monitor river levels, and coordinate rescue and relief operations.
Officials in both countries continue to urge residents to exercise caution and follow guidance from local authorities as recovery and cleanup efforts proceed. With saturated soils and rivers at high levels in France, and strong winds still affecting parts of Spain, the risk of further accidents and property damage remains high.
The extreme weather has highlighted the challenges of managing consecutive storms across Europe and underscored the importance of preparedness in regions prone to flooding and high winds.
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Warsaw in the Running for New EU Customs Office Amid High-Stakes Competition
Warsaw is one of the candidates for the location of the new EU Customs Office. In the background, however, there is a political battle and a race against a gigantic technological challenge. At stake are prestige, hundreds of jobs, and influence over how the European Union will protect its economic borders for decades. The office is expected to begin operations this year and reach full functionality within two years.
The list of contenders includes Liège (Belgium), Malaga (Spain), Lille (France), Zagreb (Croatia), Rome (Italy), The Hague (Netherlands), Porto (Portugal), and Bucharest (Romania). Each city is promoting its own advantages. The Hague emphasises links with Europol, while Belgium and France focus on logistics expertise.
Poland is highlighting Warsaw’s strategic and operational strengths. The city already hosts the EU border agency Frontex, and Polish officials argue that customs officers and border guards should work together in the fight against hybrid threats. “Integrated border management and synergy among these institutions are key to security,” said former Finance Minister Magdalena Rzeczkowska.
Małgorzata Krok, Plenipotentiary of the Minister of Finance and Economy for Warsaw’s EU Customs Authority (EUCA) bid, stressed the economic benefits of hosting the new office. “The agency means increased business and tourist traffic, as well as the arrival of EUCA employees with their families. It is expected to eventually employ 250 people, but this number could rise,” she said. Warsaw offers direct flights to EU countries, proximity to border crossings, and experience in large-scale tax and customs IT systems, she added.
The EUCA will not only serve as the administrative hub but also as a technology centre. Central to its operations will be the EU Customs Data Hub, designed to replace 27 separate national systems with a unified database. The hub aims to track goods in real time, detect dangerous products, and improve the collection of customs duties, especially as the European Commission anticipates 5.6 billion parcels entering the Union in 2025, mostly from China.
Experts warn that the system’s success depends on cooperation with private sector partners, including courier and e-commerce companies. Without consultation, technical and operational bottlenecks could disrupt trade and affect consumers. Poland argues that its experience in crisis management and digital operations makes it the most capable host for the ambitious reform.
Behind the scenes, Warsaw is actively lobbying EU decision-makers. “At the end of the day, it will be a political decision,” Rzeczkowska said, noting that the final choice will be made by the EU Council and the European Parliament. The verdict is expected in March 2026, determining whether Brussels prioritises traditional Western trade hubs or a digitally focused centre on Europe’s eastern flank.
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TUC Warns Gender Pay Gap May Persist Until 2056 Without Faster Action
Moves to close the gender pay gap will not be successful until 2056 if progress remains at its current rate, according to the Trades Union Congress (TUC). The union federation highlighted that women in the UK earn on average 12.8% less than men, equivalent to £2,548 a year.
Analysis of official pay data shows the gap is widest in the finance and insurance sector at 27.2%, while the leisure service industry records the smallest difference at 1.5%. Even in female-dominated fields such as education and health and social care, pay disparities remain high, at 17% and 12.8% respectively.
The gender pay gap measures the difference in salaries paid to men and women within the same industries. Employers in the UK with more than 250 staff are required to publish pay data. The TUC noted that these disparities mean the average woman effectively works for 47 days each year without pay compared to male colleagues.
“Women have effectively been working for free for the first month and a half of the year compared to men,” TUC general secretary Paul Nowak said. He stressed that the ongoing cost-of-living pressures make this inequity even more pressing, adding, “They deserve their fair share.”
Nowak acknowledged recent changes under the Employment Rights Act as a step toward pay parity but called for broader reforms. He urged the government to improve access to paid parental leave so that “mums and dads can better share care,” and emphasised the need for flexible working and affordable childcare.
The TUC also pointed to age as a factor in the pay gap, noting that women aged 50-59 experience the largest disparities. The organisation attributes this in part to long-term effects of women pausing or reducing their careers to take on caring responsibilities.
Business groups have warned that expanding benefits and leave provisions could increase costs for employers and discourage hiring. Matthew Percival, director for the Future of Work and Skills at the Confederation of British Industry (CBI), said, “The cost of doing business is already leading to firms cutting jobs. With major changes to employment laws coming down the line, the government must be extra careful not to add to those pressures.”
Employers will soon be required to publish plans outlining how they intend to reduce the gender pay gap. A government spokesperson highlighted ongoing measures, saying, “Combined with changes to flexible working, stronger protections for expectant and new mothers, and wider action to review parental leave and to expand childcare entitlements, we are tackling the root causes of the gender pay gap and backing women to succeed at work.”
The TUC’s warnings underline the scale of the challenge, suggesting that without accelerated efforts, progress toward pay equality remains decades away.
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