BAKU, Azerbaijan, Aug.1. The current peak in energy prices is worsening the historically negative EU energy balance, said the Executive Vice-President of the European Commission Valdis Dombrovskis, Trend reports.
“In 2021, the negative EUR 283 billion energy balance was offset by the surpluses in agricultural and industrial goods (EUR 345 billion) and services (EUR 133 billion). The EU had an overall trade surplus of EUR 194 billion in 2021. In the first quarter (Q1) of 2022, the EU surplus became a deficit. The negative energy balance of EUR 129 billion was not offset by the surpluses in agricultural and industrial goods (EUR 47 billion) and services (EUR 39 billion). With China, the EU traditionally has a deficit in trade in goods even with no energy trade. In 2021 it was EUR 249 billion and in Q1 2022 EUR 34 billion,” said the Executive Vice-President.
Dombrovskis noted that EU export bans to Russia have also caused a fall in goods exports.
“The EU bilateral deficit of EUR 2.5 billion in non-energy trade of Q1 2022 compared to a EUR 29 billion surplus of 2021. Including the negative bilateral energy balance the EU has been historically running deficits in goods trade with Russia (EUR 73 billion in 2021). The Green Deal aims to make the EU more resource-efficient and competitive by making production more sustainable. Together with the REPowerEU, the plan to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition, it will boost domestic renewable energy production and potentially decrease the EU’s energy dependency. By reversing the current trend of energy imports this could reduce the EU’s energy trade deficit in the medium to long term. The Commission will pursue its Free Trade Agreement agenda so to raise EU growth through policies that make exports more competitive and imports cheaper,” he noted.
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