S&D letter on immediate action to respond to geopolitical and affordability crisis

Affordability crisis items related to bills

The war waged by the US and Israeli administrations against Iran, and the recent escalation, represent serious breaches of international law and a dangerous step towards further destabilization in an already volatile region. These actions, notably under the leadership of US President Trump and Israeli Prime Minister Netanyahu, fuel wider conflict and undermine decades of multilateral efforts aimed at preserving peace and security. 

We are particularly alarmed by President Trump’s claims about “erasing a civilization.” This rhetoric has prompted action from the US Congress and demands a principled response from the European Union, rooted in its own values and political DNA. Furthermore, while we welcome the ceasefire brokered under the auspices of Pakistan, we note with concern that attacks by Israeli armed forces against civilians and infrastructure in Lebanon have not ceased. 

The European Union cannot remain a bystander. A strong, proactive diplomatic stance is urgently needed for the people of Iran, the wider region, and European citizens alike. 

The consequences of this escalation are already being felt across Europe through rising energy prices, soaring housing costs, market instability, and renewed inflationary pressures. Families and workers, still recovering from successive crises, are once again being asked to pay the price for geopolitical decisions over which they have no control. 

Let us be clear: this is a crisis of both geopolitics and affordability. It demands immediate political action at the European level. In this context, the Commission and the European Council must exercise maximum diplomatic pressure on both Trump and Netanyahu to uphold international law without ambiguity or double standards. This must be matched by the greatest possible pressure on the Iranian regime through lawful measures, including sanctions.

Externally, the EU must intensify diplomatic efforts to promote de-escalation and a return to dialogue by: 

  • Calling on the Council to urgently suspend the EU-Israel Association Agreement and impose sanctions in light of Israel’s continuous attacks on Lebanon and Gaza, and the reintroduction of the death penalty in the West Bank.
  • Actively engaging with the recent ceasefire facilitated by Pakistan to ensure that this temporary de-escalation evolves into a comprehensive and lasting peace agreement.
  • Providing strong technical and financial assistance to the International Criminal Court (ICC) and relevant tribunals, thereby reaffirming that respect for international law remains a nonnegotiable foundation for the EU and its Member States. This includes the immediate activation of the EU Blocking Statute to shield the ICC from the extraterritorial impact of US sanctions.
  • Establishing effective mechanisms to deliver humanitarian assistance to all affected populations in cooperation with UN agencies.
  • Reaffirming the EU’s commitment to non proliferation and existing regional security frameworks. 

Internally, we call for an "Affordability Shield" to protect citizens against the rising cost of living through: 

  • Reducing electricity prices including by lowering taxation, decoupling them from gas prices, and building strategic reserves. We should use the Electricity Market Design and Grids Package to increase flexibility through energy storage and demand-side response. Using Power Purchase Agreements (PPAs) and Contracts for Difference (CfDs) will further stabilise and reduce prices.
  • Implementing the Green Deal is the only sustainable way to break the link with gas and to lower energy prices. This includes a reinforced "Renovation Wave" with targeted investment in energy-efficient housing, support for heat pump and electric vehicles deployments (e.g. social leasing scheme), directed primarily toward low-income households.
  • Delivering an EU investment package to anticipate the investments required in the energy transition (e.g. using cohesion or RRF funds, joint borrowing) that would allow Europe to phase-out durably its exposure to fossil fuel dependency risks.
  • Providing targeted income support, protections against energy disconnections, and social energy tariffs for vulnerable households and young people.
  • Establishing an EU instrument to tax windfall profits from fossil fuel companies, similar to the solidarity contribution enacted in 2022.
  • Reactivating immediately the SURE instrument to fund short-time work schemes and maintain the European Globalisation Adjustment Fund (EGF) to help displaced workers retrain.
  • Proposing concrete measures to mitigate the impact of the current crisis on social inclusion and poverty through the upcoming European Pillar of Social Rights Action Plan with the active involvement of social partners. Furthermore, the EU must protect consumers from "greedflation" (excessive profit) and anti-competitive conduct in the food and energy sectors. • Using fully all existing instruments, including the escape clause and the European Stability Mechanism, to cope with macroeconomic shocks.  

The European Union is fully equipped to act. As outlined in the S&D Manifesto on Europe’s Sovereignty in the Face of Trump’s Power Grab, the Commission and Council must urgently progress on enhancing Europe’s autonomy across the democratic, economic, social, digital, and military domains.  

The EU must demonstrate that it is capable of protecting its citizens, not only through words, but through concrete action.  

My Group, the Socialist and Democrats in the European Parliament, expects a European response that matches the scale and urgency of the challenge. 

MEPs involved

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