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First, on energy markets, the presentation we had from ACER, as Paschal just said, confirmed that we have a more encouraging picture on energy compared to a few months ago.
Together with the overall mild weather conditions, our joint action at the EU level has helped to rebalance demand and supply and to bring down prices, overcoming Russia's weaponisation of energy. A few figures that we discussed:
In October and November, gas consumption was 25% below the average for the same months over the past five years – 25% below – exceeding the target reduction that the Commission proposed at 15%.
Second, stepped-up efforts to diversify supply sources have also borne fruit. In the first five weeks of 2023, pipeline gas from Russia accounted for around 7.5% of total EU imports of gas, down from 37% on average in 2021.
Three: Imports of seaborne LNG more than doubled from 20% in 2021 to 42% in early 2023.
And finally, along with lower prices, these developments have left gas storage levels at around 75% of capacity, only marginally below their level at the beginning of the heating season. And at a higher level than in previous years.
So the decline in energy prices should allow governments to gradually phase out energy support measures and make the remaining ones more targeted. And we encourage them to do so.
There is a narrow window of opportunity in the coming months to improve the quality of measures, phasing out first the costliest and less efficient ones, and those that are not benefiting the more vulnerable.
To be clear, we are not yet out of the woods, as we say. Energy prices remain well above the levels seen in recent years and may remain volatile, while supply shortages might re-emerge in the coming months. This is why we intend to put in place a joint purchasing tool no later than the end of this quarter, to support the filling of gas storage ahead of the next filling season.
The Commission will also come forward with a proposal to reform electricity market design, to address energy price volatility, while preserving security of supply, delivering affordable electricity, and bringing the benefits of renewable generation to citizens and businesses.
And of course, REPowerEU is there to support reforms and investments, together with the RRF, to reduce our reliance on fossil fuels.
We also had an extensive discussion today on the labour market. The labour market remains remarkably resilient: 6.6% is the euro area unemployment rate and it is at an all-time low, while activity rate and employment rate have reached all-time highs (79.5% and 74.4%). All time highs....
more at Commission