As the uncertainty in the Middle East deepens and shows no sign of going away, Europe finds itself once again grappling with a familiar question: are rising energy prices a temporary disruption, or the new normal?

While the current tensions in the Middle East have not yet directly impacted the EU in military terms, their effect on energy markets is already being felt. Policymakers across Europe, many still recovering from the shock of the Russia-Ukraine crisis, are increasingly uneasy. During a recent extraordinary high-level meeting, Energy Ministers agreed to stay in close touch and coordinate more closely on how to respond to new developments.

The underlying fear that is not being mentioned out loud is not necessarily an immediate price spike, but something more concerning: prolonged instability.

Even if oil prices remain below the peaks of 2022, the reality is that global energy markets are becoming more fragile. Supply chains are exposed, infrastructure is vulnerable, and geopolitical risk is no longer an exception but a constant. In this context, assuming a return to “normal” is no longer a safe bet.

This is where Europe faces an uncomfortable truth: energy prices did not truly return to pre-crisis levels after 2022. They stabilised, but at a higher level. For a continent already dependent on energy imports, this is not a short-term issue. It is a long-term competitiveness challenge.

The EU has recognised this, at least in principle. A 2025 Action Plan for Affordable Energy in 2025 included proposals to reduce electricity taxation and remove non-energy costs from bills. Sensible steps. But they also lead to a more fundamental question: why has this not already been done across the EU?

Malta offers a clear – if often overlooked – answer.

Unlike many Member States, Malta has consistently treated energy affordability as a priority, rather than an afterthought. Yes, the Government invests heavily in subsidies to shield consumers from price volatility.

But the more important point is fundamental: Malta keeps energy taxation deliberately low.

EU rules allow VAT on energy to be reduced to 5%, and Malta applies this minimum. In contrast, several Member States maintain significantly higher rates and often add further levies on electricity consumption. These charges are frequently justified on fiscal or policy grounds, but in real terms they increase the burden on households and businesses.

Under Robert Abela’s Labour Government Malta has taken a different approach.  Our Government has chosen not only to subsidise energy, but also to limit the tax burden attached to it. This is not without cost. It means foregoing potential government revenue. But it also means insulating the wider economy from external shocks. That trade-off matters.

High energy prices do not remain confined to utility bills. They ripple through the entire economy. Households have less disposable income. Businesses face higher operating costs. Inflation rises. Competitiveness declines. Over time, this erodes economic resilience.

Europe cannot afford to treat this as a temporary issue. Even if geopolitical tensions ease, the structural factors driving high energy prices will remain. The EU will continue to rely on imports. Global competition for energy will intensify. Price volatility will persist.

The question, therefore, is not whether Europe can lower global energy prices. It cannot. The real question is how its Member States choose to respond domestically. The answer is straightforward, but politically challenging: reduce the burden on consumers.

Malta is not immune to global energy dynamics. But it has shown that policy choices can make a tangible difference in how those dynamics are felt by citizens and businesses on the ground.

If Europe is serious about becoming more competitive, achieving economic stability, and protecting its citizens, it should stop treating energy affordability as an emergency measure, and start treating it as a permanent policy priority.