The European Commission has proposed giving itself legally-enshrined power to
plan the expansion of European electricity grids, as it scrambles to update an
ageing network to meet the soaring demands of the clean energy transition.
The proposed changes to the Trans-European Networks for Energy, or TEN-E,
regulation, would give the Commission power to conduct “central scenario”
planning to assess what upgrades are needed to the grid — a marked change from
the current decentralized system of grid planning.
The Commission would conduct this planning every four years. Where no projects
are planned, the Commission would have power to intervene.
The proposal was part of the European Grids Package, a sweeping set of changes
to EU energy laws released Wednesday.
Electrification of everything from transport and heating to industrial processes
is essential as Europe moves away from planet-warming fossil fuels. But that
puts huge strain on networks, and the Commission estimates electricity demand
will double by 2040. An efficient, pan-European electricity grid is essential to
meeting this demand.
“The European Grids Package is more than just a policy,” said Teresa Ribera, the
EU’s decarbonization chief, in a statement Tuesday. “It’s our commitment for an
inclusive future, where every part of Europe reaps the benefits of the energy
revolution: cheaper clean energy, reduced dependence on imported fossil fuels,
secure supply and
protection against price shocks.”
Along with centralized planning, the Grids Package proposes speeding up
permitting of grids and other energy projects to get the infrastructure faster,
including relaxing environmental planning rules for grids. Currently planning
and building new grid infrastructure takes around 10 years.
It would do this by amending four laws: the TEN-E regulation, the Renewable
Energy Directive, the Energy Markets Directive, and the Gas Market Directive.
The package also proposes “cost-sharing” funding models to ensure those
countries that benefit from projects contribute to its financing, and speeding
up a number of key energy interconnection projects across Europe.
Tag - Electricity grid
Jamie Dettmer is opinion editor and a foreign affairs columnist at POLITICO
Europe.
As Russia began its full-scale invasion of Ukraine nearly four years ago,
Volodymyr Kudrytskyi, then head of Ukraine’s state-owned national power company
Ukrenergo, was scrambling to keep the lights on.
Somehow, he succeeded and continued to do so every year, earning the respect of
energy executives worldwide by ensuring the country was able to withstand
Russian missile and drone strikes on its power grid and avoid catastrophic
blackouts — until he was abruptly forced to resign in 2024, that is.
Kudrytskyi’s dismissal was decried by many in the energy industry and also
prompted alarm in Brussels. At the time, Kudrytskyi told POLITICO he was the
victim of the relentless centralization of authority that Ukrainian President
Volodymyr Zelenskyy and his powerful head of office Andriy Yermak often pursue.
He said he feared “corrupt individuals” would end up taking over the state-owned
company.
According to his supporters, it is that kind of talk — and his refusal to remain
silent — that explains why Kudrytskyi ended up in a glass-enclosed cubicle in a
downtown Kyiv courtroom last week, where he was arraigned on embezzlement
charges. Now, opposition lawmakers and civil society activists are up in arms,
labeling this yet another example of Ukraine’s leadership using lawfare to
intimidate opponents and silence critics by accusing them of corruption or of
collaboration with Russia. Zelenskyy’s office declined to comment.
Others who have received the same treatment include Zelenskyy’s predecessor in
office, Petro Poroshenko, who was sanctioned and arraigned on corruption charges
this year — a move that could prevent him from standing in a future election.
Sanctions have frequently been threatened or used against opponents, effectively
freezing assets and blocking the sanctioned person from conducting any financial
transactions, including using credit cards or accessing bank accounts.
Poroshenko has since accused Zelenskyy of creeping “authoritarianism,” and
seeking to “remove any competitor from the political landscape.”
That may also explain why Kudrytskyi has been arraigned, according to opposition
lawmaker Mykola Knyazhitskiy, who believes the use of lawfare to discredit
opponents is only going to get worse as the presidential office prepares for a
possible election next year in the event there’s a ceasefire. They are using the
courts “to clear the field of competitors” to shape a dishonest election, he
fears.
Others, including prominent Ukrainian activist and head of the Anti-Corruption
Action Center Daria Kaleniuk, argue the president and his coterie are using the
war to monopolize power to such a degree that it threatens the country’s
democracy.
Kaleniuk was in the courtroom for Kudrytskyi’s two-hour arraignment, and echoes
the former energy boss’s claim that the prosecution is “political.” According to
Kaleniuk, the case doesn’t make any legal sense, and she said it all sounded
“even stranger” as the prosecutor detailed the charges against Kudrytskyi: “He
failed to show that he had materially benefited in any way” from an
infrastructure contract that, in the end, wasn’t completed, she explained.
The case in question is related to a contract Kudrytskyi authorized seven years
ago as Ukrenergo’s then-deputy director for investments. But the subcontractor
didn’t even begin work on the assigned infrastructure improvements, and
Ukrenergo was able to claw back an advance payment that was made.
Kaleniuk’s disquiet is also echoed by opposition lawmaker Inna Sovsun, who told
POLITICO, “there’s no evidence that [Kudrytskyi] enriched himself.”
“There was no damage done. I can’t help but think that this is all politically
motivated,” she said.
Sovsun turned up to the arraignment to offer herself as a bail guarantor if
needed — two other lawmakers offered to act as guarantors as well, but the judge
instead decided on another procedure to set Kudrytskyi free from pre-trial
detention by requiring the payment of bail bond of $325,000.
One senior Ukrainian adviser, who asked not to be identified so they could speak
about the case, dismissed the defense’s description of the case against
Kudrytskyi as being politically motivated and claiming there was no substance to
the embezzlement allegations. “People should wait on this case until the full
hearing,” he added.
But for former Deputy Prime Minister Ivanna Klympush-Tsintsadze, the case
“doesn’t look good from any angle — either domestically or when it comes to
international partners.” The timing, she said, is unhelpful for Ukraine, as it
coincides with Kyiv’s ongoing appeal for more European energy assistance ahead
of what’s likely to be the war’s most perilous winter.
With Russia mounting missile and drone strikes on a far larger scale than
before, Ukraine’s energy challenge is likely to be even more formidable. And
unlike previous winters, Russia’s attacks have been targeting Ukraine’s
drilling, storage and distribution facilities for natural gas in addition to its
electrical power grid. Sixty percent of Ukrainians currently rely on natural gas
to keep their homes warm.
Some Ukrainian energy executives also fear Kudrytskyi’s prosecution may be part
of a preemptive scapegoating tactic to shift blame in the event that the
country’s energy system can no longer withstand Russian attacks.
Citing unnamed sources, two weeks ago Ukrainian media outlet Ukrainska Pravda
reported that former energy executives fear they are being lined up to be
faulted for failing to do enough to boost the energy infrastructure’s resilience
and harden facilities.
“They need a scapegoat now,” a foreign policy expert who has counseled the
Ukrainian government told POLITICO. “There are parts of Ukraine that probably
won’t have any electricity until the spring. It’s already 10 degrees Celsius in
Kyiv apartments now, and the city could well have extended blackouts. People are
already pissed off about this, so the president’s office needs scapegoats,” he
said, speaking on condition of anonymity to discuss the matter freely.
“The opposition is going to accuse Zelenskyy of failing Ukraine, and argue he
should have already had contingencies to prevent prolonged blackouts or a big
freeze, they will argue,” he added.
Senior fellow at the Atlantic Council and author of “Battleground Ukraine”
Adrian Karatnycky also worries about the direction of political travel. “While
he’s an inspirational and brave wartime leader, there are, indeed, worrying
elements to Zelenskyy’s rule,” he said.
When you live at the crossroads of East and West, energy is never just about
electricity or gas. In the Republic of Moldova, high-voltage lines and pipelines
have always carried more than power — they have carried geopolitics. For
decades, this small country wedged between Romania and Ukraine found itself
trapped in a web of vulnerabilities: dependent on Russian gas, tied to
Soviet-era infrastructure and reliant on energy supplies from the breakaway
Transnistrian region. Energy was less a utility than a lever of political
blackmail.
And yet, in just a few years, Moldova has begun to flip the script. What
was once the country’s greatest weakness has been turned into a project of
sovereignty — and, crucially, a bridge to Europe.
A turning point in the crisis
The breaking point came in October 2021, when Gazprom slashed
deliveries, prices exploded and Chișinău suddenly found itself staring at an
energy abyss. Electricity was supplied almost entirely from the MGRES plant in
Transnistria, itself hostage to Kremlin influence. By 2022 the situation
worsened: gas supplies were halted altogether, MGRES cut the lights on the right
bank of the Dniester and Moldova teetered on the edge of a blackout.
With coordinated support from the European Union — which helped Moldova
overcome the crises, cushion the impact on consumers hit by soaring prices and
committed further backing through instruments such as the Growth Plan for the
Republic of Moldova — the country managed to stabilize the situation.
For many countries, such a crisis would have spelled capitulation. For
Moldova, it became the start of something different: a choice between survival
within the old dependency or a leap toward reinvention.
> What was once the country’s greatest weakness has been turned into a project
> of sovereignty — and, crucially, a bridge to Europe.
Reinvention with a European compass
Under a unified Pro-European leadership — President Maia Sandu, Prime
Minister Dorin Recean and Energy Minister Dorin Junghietu — Moldova has embraced
the latter path. In 2023 the Ministry of Energy was created not as another
bureaucratic silo, but as an engine of transformation.
The strategy was clear: diversify supply, integrate with the European
grid, liberalize markets and accelerate the green transition. Within months, JSC
Energocom — the newly empowered state supplier — was sourcing natural gas from
more than ten European partners via the Trans-Balkan corridor. Strategic
reserves were secured in Romania and Ukraine. For the first time, Moldova was no
longer hostage to a single supplier.
In 2024 Moldova joined the Vertical Gas Corridor linking Greece,
Bulgaria, Romania and Ukraine — a symbolic and practical step toward embedding
itself into Europe’s energy arteries. On the electricity side, synchronization
with ENTSO-E, the European grid, in March 2022 allowed direct imports from
Romania. The Vulcănești–Chișinău transmission line, to be completed this year,
alongside the Bălți–Suceava interconnection in tender procedures, ensures
Moldova’s future is wired into Europe, not into its separatist past. Since 2025
the right bank of the Dniester has no longer bought electricity from
Transnistria.
Accelerated legislative reform
None of Moldova’s progress would have been possible without shock
therapy in legislation. The country rewrote its gas law to enforce mandatory
storage of 15 percent of annual consumption, guarantee public service
obligations, open its markets to competition, and shield vulnerable consumers.
In parallel, it adopted EU rules on wholesale market transparency and trading
integrity, aligning itself not only in practice but also in law with European
standards, a pace of change that has been repeatedly underscored by the Energy
Community Secretariat in its annual Implementation Reports, which recognized
Moldova as the front-runner in the Community in 2024.
But perhaps the most striking step was political: Moldova became the
first country in Europe to renounce Russian energy resources entirely. A
government decision spelled it out clearly: “the funds are intended to ensure
the resilience and energy independence of the Republic of Moldova, including the
complete elimination of any form of dependence on the supply of energy resources
from the Russian Federation.”
Junghietu, Moldova’s energy minister, has been blunt about what this
meant. “Moldova no longer wants to pay a political price for energy resources —
a price that has been immense over the past 30 years. It held back our economic
development and kept us prisoners of empty promises.” The new strategy is built
on diversification, transparency and competition. As Junghietu put it: “The
economy must become robust, so that it is competitive, with prices determined by
supply and demand.”
This combination of structural reform and political clarity marked a
definitive break with the past — and a foundation for Moldova’s European energy
future.
The green transition: from ambition to action
The reforms went beyond emergency fixes. They set the stage for a green
transformation. By amending renewables legislation, the government committed to
27 percent renewable energy in total consumption by 2030, with 30 percent in the
electricity mix.
The results are visible: tenders for 165 MW of renewable capacity have
been launched and contracted and a net billing mechanism was introduced,
boosting the number of prosumers. In April 2025 more than a third of Moldova’s
electricity already came from local renewables. The ministry has also supported
the development of energy communities, biofuels and pilot projects for energy
efficiency. The green transition is no longer a slogan — but a growing reality.
More than energy policy — a political project
Digitalization, too, is reshaping the sector. With support from UN
Development Programme and the Italian government, 35,000 smart meters are
already in place, with a goal to reach 100,000 by 2027. These are not just
gadgets — they cut losses, enable real-time monitoring and give consumers more
control. Meanwhile, ‘sandbox’ regimes for energy innovators, digital platforms
for price comparison and streamlined supplier switching are dragging Moldova’s
energy sector into the 21st century.
These are not technical reforms in isolation; they are political acts.
Energy independence has become the backbone of Moldova’s EU trajectory. By
transposing the EU’s Third and Fourth Energy Packages, adopting the Integrated
National Energy and Climate Plan, and actively engaging in European platforms,
with technical support from the Energy Community Secretariat that helped
authorities navigate these challenges, Chișinău is demonstrating that
integration is not just a diplomatic aspiration — it is a lived reality.
Partnerships with Romania have been central. The 2023 energy memorandum,
joint infrastructure projects, and cross-border storage and balancing
initiatives have anchored Moldova firmly in the European family. Step by step,
the country has become not only a consumer but also a credible partner in the
European energy market.
> These are not technical reforms in isolation; they are political acts. Energy
> independence has become the backbone of Moldova’s EU trajectory.
Lessons from crisis
The energy crises of 2021-22 were existential. Moldova was threatened
with supply cuts, social unrest and economic collapse. But the government’s
response was coordinated, strategic and unusually bold for a country long
accustomed to living under the shadow of dependency.
New laws harmonized tariffs, enforced supplier storage obligations and
put in place shields for vulnerable households. The Ministry of Energy proved
capable of anticipating risks and managing them. Moldova ceased being reactive —
and started planning.
Of course, challenges remain. Interconnections with Romania must be
further expanded, balancing capacity for the electricity grid is still limited
and investment in efficiency has only begun. But today, Moldova has a coherent
plan, a competent team and an irreversible direction.
A change of mindset
Perhaps the most profound transformation has been cultural. Chișinău’s
energy ministry has evolved from crisis responder to a forward-looking body
linking European market realities with citizens’ daily needs. Its teams are now
engaging with both the complexities of European energy markets and the practical
concerns of Moldovan households. Decisions are increasingly data-driven,
communication is transparent, and cooperation with private actors and
international partners has become routine.
This institutional maturity is crucial for Moldova’s EU path.
Integration is not only about harmonizing legislation but also about building
trust, credibility and resilience. Energy has become the showcase — the sector
that proves Moldova can implement European rules, innovate and deliver.
> Energy has become a catalyst for broader reforms in governance, transparency,
> social protection and regional development.
A model in the making
In a region where instability remains the norm, Moldova is beginning to
stand out as a model of resilience. Its reforms — synchronization with ENTSO-E,
participation in the Vertical Gas Corridor, expansion of renewables and rapid
digitalization — are being watched across the Eastern Partnership. Energy has
become a catalyst for broader reforms in governance, transparency, social
protection and regional development.
What was once a weapon turned against Moldova has been reimagined as a
shield. Energy, long the Achilles’ heel of this fragile state, has become its
spearhead into Europe. Moldova’s journey is far from complete. But one
thing is already clear: its European future is no longer a promise. It is under
construction, one kilowatt at a time.
--------------------------------------------------------------------------------
Author: Daniel Apostol is an economic analyst, first vice president of the
Association for Economic and Social Studies and Forecasts (ASPES), and CEO of
the Federation of Energy Employers of Romania.
--------------------------------------------------------------------------------
This publication was produced with the financial support of the European Union.
Its content represents the sole responsibility of the MEIR project, financed by
the European Union. The content of the publication belongs to the authors and
does not necessarily reflect the vision of the European Union.
Mr. Marcin Laskowski | via PGE
The European Union finds itself navigating an era of extraordinary challenges.
From defending our shared values against authoritarian aggression to preserving
unity in the face of shifting geopolitical landscapes, the EU is once again
being tested. Covid-19, the energy crisis, the full-scale Russian war against
Ukraine and renewed strains in international relations have taught us a simple
lesson: a strong Europe needs capable leaders, resilient institutions and, above
all, stable yet flexible financial frameworks.
The debate on the next Multiannual Financial Framework (MFF) is therefore not
only about figures. It is, fundamentally, a debate about Europe’s security,
resilience and its future.
From the perspective of the power sector, the stakes are particularly high.
Electricity operators live every day with the consequences of EU regulation,
carrying both the costs of compliance and the opportunities of EU investment
support. Data confirms that European funds channeled into the electricity sector
generate immense value for the EU economy and consumers alike. Why? Because
electrification is the backbone of Europe’s industrial transformation.
The Clean Industrial Deal makes it clear: within a few short years, Europe must
raise the electrification rate of its economy by 50 percent — from today’s 21.3
percent to 32 percent by 2030. That means the future of sectors as diverse as
chemicals, steel, food processing and high-tech manufacturing is, in reality, a
debate about electrification. If this transition is not cost-effective, Europe
risks eroding its global competitiveness rather than strengthening it.
> That means the future of sectors as diverse as chemicals, steel, food
> processing and high-tech manufacturing is, in reality, a debate about
> electrification.
Electrification is also central to REPowerEU — Europe’s pledge to eliminate
dependence on Russian fossil fuels. It is worth recalling that in 2024 the EU
still paid more to Russia for oil and gas (€21 billion) than it provided in
financial support to Ukraine (€19 billion). Only a massive scale-up of clean,
domestic electricity can reverse this imbalance once and for all.
But this requires a fresh approach. For too long, the power sector has been seen
only through the lens of its own transition. Yet without power sector, no other
sector will decarbonize successfully. Already today, electricity accounts for 30
percent of EU emissions but has delivered 75 percent of the reductions achieved
from the Emissions Trading Scheme. As electrification accelerates, the sector —
heavily reliant on weather-dependent renewables — faces growing costs in
ensuring security of supply and system stability. This is why investments must
also focus on infrastructure that directly enhances security and resilience,
including dual-use solutions such as underground cabling of electricity
distribution grids, mobile universal power supply systems for high/medium/low
voltage, and advanced cyber protection. These are not luxuries, but
prerequisites for a power system capable of withstanding shocks, whether
geopolitical, climatic or digital.
> For too long, the power sector has been seen only through the lens of its own
> transition. Yet without power sector, no other sector will decarbonize
> successfully.
The European Commission estimates that annual investment needs in the power
sector will reach €311 billion from 2031— nearly ten times more than the needs
of industry sector. This is an unavoidable reality. The critical question is how
to mobilize this capital in a way that is least burdensome for citizens and
businesses. If mishandled, it could undermine Europe’s industrial
competitiveness, growth and jobs.
The MFF alone cannot deliver this transformation. Yet it can, and must, be a
vital part of the solution. The European Parliament rightly underlined that
completing the Energy Union and upgrading energy infrastructure requires
continued EU-level financing. In its July proposal, the Commission earmarked 35
percent of the next budget — about €700 billion — for climate and environmental
action. These funds must be allocated in a technology-neutral way,
systematically covering generation, transmission, distribution and storage.
Public-good investments such as power grids — especially local and regional
distribution networks — should be treated as a top priority, enabling small and
medium-sized enterprises and households to deploy renewables, access affordable
energy and reduce energy poverty.
> The debate is not only about money, it is also about the way it is spent.
The debate is not only about money, it is also about the way it is spent. A
cautious approach is needed to the “money for reforms” mechanism. EU funds for
energy transition must not be judged through unrelated conditions. Support for
investments in energy projects must not be held hostage to reforms not linked to
energy or climate. This caution should also apply to extending the “do no
significant harm” principle to areas outside the scope of the Taxonomy
Regulation, where it risks adding unnecessary complexity, administrative burden
and uncertainty. The focus must remain firmly on delivering the infrastructure
and investments needed for decarbonization and security. Moreover, EU budget
rules must align with state aid frameworks, particularly the General Block
Exemption Regulation, and reflect the long lead times required for power sector
investments. At the same time, Europe cannot afford to lose public trust. The
green transition will not succeed if imposed against citizens; it must be built
with them. Europe needs more carrots, not more sticks.
The next EU budget, therefore, must be more than a financial plan. It must be a
strategic instrument to strengthen resilience, sovereignty and competitiveness,
anchored in the electrification of Europe’s economy. Without it, we risk not
only missing our climate targets but also undermining the very security and
unity that the EU exists to defend.
LONDON — In his first Downing Street speech, Keir Starmer promised to “deliver
change.” Fourteen months on, he’s still figuring out the delivery part.
The British prime minister is expected to revamp his No. 10 operation amid
tumbling poll ratings and as a fraught political season gets underway. Nin
Pandit, his most senior civil service aide, is being moved after 10 months to
lead a new delivery team operating out of Downing Street.
“Delivery” is the watchword for Starmer, who sold himself to voters as a
businesslike problem-solver after years of political chaos. But several Labour
officials, MPs and civil servants who spoke to POLITICO, all on condition of
anonymity, questioned whether the structures Starmer has created for his major
program of domestic change really are fit for purpose.
Pandit is the latest in a growing list of civil servants and political aides
with “delivery” in either their titles or remit. They include Liz Lloyd,
Starmer’s director of policy, delivery and innovation, who works alongside Olaf
Henricson-Bell, the director of the No. 10 policy unit; Pat McFadden, Starmer’s
Cabinet ally and enforcer; Clara Swinson, who leads Starmer’s Mission Delivery
Unit; and Michael Barber, the founder of Tony Blair’s delivery unit in 2001, who
is advising the new PM.
Some officials think this big cast is a recognition that there is a problem. But
some also see a cause: too many people with different ideas about getting things
done.
Then there is that overall vision — or lack of it (an accusation that Starmer’s
allies deny vociferally). One Labour MP loyal to Starmer said: “We are like a
piece of driftwood floating on the ocean looking at the view. It’s a nice view,
but where are we going?”
On paper, Starmer — who returns from holiday to a flurry of activity this week —
should be far more comfortable than his centrist allies such as France’s
Emmanuel Macron or Germany’s Friedrich Merz. He has a huge House of Commons
majority and probably won’t face an election until 2029. On the world stage, his
careful diplomacy has nudged Donald Trump toward more U.K.-friendly statements
on tariffs, Ukraine and Gaza.
At home, though, Starmer faces populists both left and right, with Brexit
veteran Nigel Farage’s Reform UK consistently ahead in the polls. Inflation has
ticked up. Unpopular tax rises loom. Starmer’s backbenchers are nervous about
planned welfare cuts and reforms for children with special needs. And migrants
keep arriving on small boats across the English Channel.
“If the first year is about stabilizing and fixing foundations, I think the next
year is going to be about deep-seated reform — and then the benefits of that
will come towards the end of the parliament,” Ravinder Athwal, who wrote
Labour’s 2024 manifesto and left his role as an aide to Starmer in July,
predicted in an interview with POLITICO’s Westminster Insider.
So far, it has also meant bureaucracy.
THE DELIVERY BUREAUCRATS
Deep in the 19th century stone-fronted Cabinet Office lies the Mission Delivery
Unit (MDU).
Set up by Starmer last fall, this group of around 30 civil servants — led by
Swinson, a Whitehall veteran who worked for Blair’s first delivery unit —
measures progress against the PM’s “five missions” that pledged the highest
growth in the G7, lower violent crime, better health and education systems, and
a decarbonized electricity grid by 2030.
On paper, Starmer — who returns from holiday to a flurry of activity this week —
should be far more comfortable than his centrist allies such as France’s
Emmanuel Macron or Germany’s Friedrich Merz. | Pool Photo by Manon Cruz via EPA
Some officials argue her unit started at a disadvantage by being based in the
Cabinet Office instead of No. 10 next door, making it less visible to the wider
government machine. One person said at least some of the MDU’s staff began their
work in the department’s basement.
“I don’t know necessarily what their objective is,” said one government
official. “From what I’ve seen, they kind of provide more of a monitoring
service of how departments are getting on, rather than driving things from the
center. But then there’s a question of whether that is the job of the policy
team in No. 10.”
Supporters point out the MDU was designed exactly to be this sort of monitoring
service and that it was never intended to actually drive policy, which is led by
Downing Street.
Others were less charitable. A former government official described the MDU
jokingly as “the slide pack department,” adding: “I genuinely don’t really know
what they do.” A second government official complained: “The message you get
from them is so fucking vague that you struggle to articulate it.”
The MDU is said to have a certain template in which departments have to submit
their progress in order to be accepted. One Labour official said: “Oh my god,
that fucking place. That unit is everything wrong with the civil service.”
A person who talks regularly to No. 10 said: “If the government is going to
continue with missions as a thing, then it really needs to press a reset button
and put a bit more oomph back under them. If the delivery unit remains where it
is, as an adjunct in the Cabinet Office, away from the prime minister’s
authority, then the reality of how Whitehall works is it’s never going to be
given the priority it needs to actually be really pushing forward reform through
the system.”
TAKE IT TO THE BOARD
Starmer’s “mission boards” have also come under question.
These were set up with the aim of bringing in outside expertise to discuss the
big hurdles facing the government. Each one is led by a Cabinet minister in
charge of a mission — plus a sixth board led by Deputy PM Angela Rayner, on her
pledge to build 1.5 million homes by 2029.
Swinson and McFadden would customarily sit in on the meetings, though McFadden’s
attendance rate has dropped off recently, said two people with knowledge of the
boards. Several people who have worked with the boards argued their lack of
decision-making ability has left them underpowered.
The boards are “pointless,” said the first former government official quoted
above: “They’re chaired by the cabinet ministers who are marking their own
homework.” When more junior ministers join meetings to present their plans, they
come across like a school “show-and-tell” day, the former official added. “They
don’t actually achieve anything.”
The person who speaks regularly to No. 10 quoted above said: “You either soup
them up and make them more useful, or you put them out of their misery, quite
frankly.”
A second person who speaks regularly to No. 10 predicted that Starmer — who
initially said he would chair the boards personally — “will have to” overhaul
them. “There is a sense that the mission delivery boards aren’t working,” they
added. “Pat largely doesn’t turn up to them anymore. They need to inject energy
into them or rethink delivery across the PM’s priorities.”
Allies of Rachel Reeves say the top finance minister is actively working on the
government’s growth strategy ahead of her fall budget. | Will Oliver/EPA
More broadly, civil servants do not “feel like an awful lot has changed,” said
another person in regular discussions with senior officials. “It doesn’t feel
like there’s been a revolution in how the government makes decisions. There were
always units for how you do joined-up government … they’ve been trying to solve
this for decades. This is just a different way of doing what other governments
have been trying to do.”
THE FINAL BOSS
One element that is effective, several officials said, involves Starmer himself.
Since last fall the PM has been leading regular “stock takes” with the five
“mission lead” Cabinet ministers, plus Rayner, that can run for two to three
hours each. He began by visiting Cabinet ministers in their own departments,
though now they come to him in No. 10. There tend to be a dozen or fewer
attendees, including McFadden, Barber and Swinson.
The stock takes put pressure on departments to get their ducks in a row, said
people with knowledge of them, and give Cabinet ministers face-time with Starmer
to press their most urgent requests — including getting No. 10 to lean on other
departments. “The prime minister wants” are still among the most powerful words
in Whitehall.
There is continuity, too. Supporters of the PM point out that the missions
themselves still stand, two and a half years after Starmer unveiled them. The
Cabinet ministers leading them have all remained in their jobs. Starmer’s “Plan
for Change” — which attached “milestones” to the missions — is mentioned
constantly in government press releases (under orders from No. 10), and the
missions govern the structure of the “grid,” the weekly news planner circulated
to senior communications officials.
While roles as “business champions” for loyal, fresh-faced Labour backbenchers
to sell the message were quietly scrapped in July, similar “mission champions”
still exist. There are regional champions, as well as mission-specific ones —
Rosie Wrighting on health, Dan Tomlinson on growth, Tom Hayes on net zero, and
Sarah Smith on opportunity. Fellow new MP Linsey Farnsworth was the champion for
tackling crime, but her role ended in the summer after she spoke out against
planned welfare cuts and she has not yet been replaced, said one person with
knowledge of the move.
Some other Labour MPs, though, have long complained that Starmer’s overlapping
missions, milestones and steps blur the message they are meant to send to the
public. Events and crises can knock these long-term goals off course, too. A
second former government official said: “They’ve been talking about nothing but
small boats all summer.”
IT TAKES TIME
These struggles should surprise no one, according to Michelle Clement, a
lecturer at King’s College London who wrote “The Art of Delivery,” a study of
Blair’s first delivery unit.
“We’re in the equivalent of 1998,” she told POLITICO. Blair, frustrated by the
pace of change on key domestic priorities, only set up his unit in 2001.
Whitehall is still getting over life under five Conservative PMs in 14 years.
“All of the change and churn that we saw in recent years of prime ministers does
have an impact on the capacity of the state,” she added.
Clement argues that Starmer has taken the right approach in creating
“institutional ballast” to ensure he has people focusing on the important
issues, while other staff focus on the urgent ones. Pandit will be “well-placed”
to do policy delivery, she said, despite some negative briefing (denied by No.
10) to the BBC about her effectiveness. Lloyd, Clement said, was “one of the
unsung heroes of the Blair years.”
If Tony Blair remains the model for government delivery, No. 10 aides would do
well to check out a 20 year-old debate clip still online. | Jessica Lee/EPA
“People need to panic a bit less,” said a second Labour official, who argued a
“huge amount” is being done but that some of it — like extending free school
meals to 500,000 more children — doesn’t resonate with the Westminster bubble.
Government-funded childcare hours increase from Monday, while Starmer is
expected to put a renewed focus on his pledge to open hundreds of nurseries in
spare school classrooms. A third Labour official said: “That’s our priority
[this] week, not tittle tattle gossip.”
MISSIONS: IMPOSSIBLE
Others, though, question the overall direction. Starmer’s mission-led approach
to government was inspired by Mariana Mazzucato, a professor at University
College London who wrote “Mission Economy: A Moonshot Guide to Changing
Capitalism.”
In an interview with POLITICO, she suggested the majority of Starmer’s five
missions do not lay out clear and sufficiently direct means of changing the way
the British economy works. “I don’t know what the economic strategy is, in terms
of what economy we want,” she said.
Mazzucato favors setting “moonshot” public sector goals that drive private
investment and innovation “along the way” — just as John F. Kennedy’s pledge to
land on the moon by the end of the 1960s began a chain of inventions that led to
camera phones and baby formula.
Mazzucato praised Labour’s net zero mission, but said overall that the party
needs “a really ambitious positive strategy which resonates with people” — and
that it should have had one from the start.
“Growth is the result of a strategy,” she added. “So, beyond the narrative on
growth, what kind of society, what kind of economy do we want? That’s not clear.
I think if you asked anyone on the street, what is Labour’s strategy for the
direction of economic growth — not the rate — it wouldn’t be totally clear.”
Mazzucato suggested the government is thinking about delivery “in the Michael
Barber way” of Blair’s first unit: more focused on key performance indicators
than on serious economic reshaping. “It’s a productive critique,” she added. “I
think they can still turn it around. It’s not like they’ve got the wrong DNA for
thinking this way. They just don’t have it set up right.”
Making the public notice is still a huge challenge, Mazzucato warned. “Biden’s
agenda worked, actually, economically, but it didn’t work in terms of resonating
with people.” Mazzucato remains in touch with the government in what she calls a
“light touch” way. She last met Chancellor Rachel Reeves in the spring, has
contact with the No. 10 policy team, and has worked closely with Cabinet Office
Minister Georgia Gould.
Much of the proof that Starmer’s government is delivering will come from 11
Downing Street.
Allies of Reeves say the top finance minister is actively working on the
government’s growth strategy ahead of her fall budget. A fresh overhaul of
planning laws is an “attempt to grip” the system and shift the way it works,
said one person who speaks to No. 11 regularly. “The Treasury is really trying
to get other departments to kick into gear,” they added.
No. 10, meanwhile, plans to add more firepower of its own. As well as an
in-house delivery team, Starmer has been seeking a high-profile economic adviser
for at least six months. It is widely reported that he will appoint Minouche
Shafik, a former deputy governor of the Bank of England who resigned as Columbia
University’s president after turmoil over the treatment of Gaza war protests on
campus.
Government-funded childcare hours increase from Monday, while Starmer is
expected to put a renewed focus on his pledge to open hundreds of nurseries in
spare school classrooms. | Robert Ghement/EPA
Former Greater London Authority official Kate Webb also joined No. 10 recently
to work on infrastructure and housing policy, a person with knowledge of the
appointment said, after Nick Williams left a similar post earlier this year.
LESSONS FROM HISTORY
If Tony Blair remains the model for government delivery, No. 10 aides can turn
to a 20 year-old debate clip that many of them will be familiar with.
It was April 2005, just ahead of a general election, and Blair faced an angry
grilling from a voter in a BBC debate. The man complained he wasn’t allowed to
schedule a doctors’ appointment for later in the week — because Blair had set a
target for patients to be seen within 48 hours. It meant the man had to be seen
within two days.
Blair was agog. It appeared to be an example of KPIs gone mad — but it was also
a clear example of a public service target that had cut through with the public
and was working.
Unlike Starmer, however, Blair had eight years in office under his belt by that
moment — and didn’t have Farage’s Reform UK breathing down his neck.
Farage is now making moonshot promises of his own, including a vow to deport
hundreds of thousands of people. Labour aides have been encouraged by recent
press interviews with Farage that have tested how deliverable his pledges are.
“People forget that it took a long time to make that change under Tony Blair,”
said the second Labour official quoted above. “It would be great if the speed of
delivery ramped up with the size of our majority. Sadly it doesn’t work like
that.”
With Farage eyeing that majority in 2029, Starmer has to find a way of proving
that his own brand of “deliverism” works — and soon.
Patrick Baker interviewed Ravinder Athwal for Westminster Insider.
ROME — Italy’s right-wing government is turning its back on two historical
referendums to place a bet on unproven nuclear technology.
Some 35 years after Italy’s last nuclear power plant closed, Prime Minister
Giorgia Meloni and her ministers are drawing up plans to go nuclear once again
in a bid to meet a growing demand for decarbonized electricity. This time,
however, it will be through next-generation nuclear technologies called Small
Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs).
“We need to make some long-term choices. That’s why we have chosen to restart
the development of nuclear power, making a bet on mini-reactors that are safe
and clean sources of energy,” Meloni said in a speech earlier this year.
On Wednesday, Italy’s Environment and Energy Security Ministry announced that
the law outlining the national plan to restart nuclear energy production had
cleared the final institutional hurdle and was now ready to be sent to
parliament.
Speaking at a July 16 event organized by Italy’s main business lobby,
Confindustria, Environment and Energy Security Minister Gilberto Pichetto Fratin
said should Rome approve it, the first plants could be operational by the end of
this decade or in the early 2030s.
According to government estimates, nuclear fission could meet from 11 percent to
22 percent of national demand by 2050.
Italy was previously home to a number of nuclear power plants. But following the
1986 meltdown at the Chernobyl plant in Ukraine, which sent a cloud of
radioactive dust over much of Europe, Italians voted against nuclear power in a
referendum the following year. By 1990 Italy had shuttered its plants and
nuclear power was no more.
In 2011 the decision was reconfirmed with another referendum shortly after the
Fukushima disaster in Japan.
“This government has demonstrated up until now that they aren’t taking into
account at all what has been a very clear expression of the popular will as
demonstrated in two referendums,” said Enrico Cappelletti, a member of the lower
house of parliament and part of the opposition Five Star Movement.
Critics such as Cappelletti argue the process will be slow and expensive, and
will increase power bills for Italians — already the second highest in Europe.
However, the government insists that adding nuclear to the power mix is crucial
to meeting growing energy demand, which is forecast to double by 2050.
SPLITTING THE ATOM
The mid-July Confindustria gathering saw business and political community elites
pack into a parliamentary committee room.
With billions of euros in investment on the line — an EY study estimates Italy’s
nuclear market could reach €50 billion by 2050 — it’s no surprise the event was
an irresistible draw for the companies in pole position to benefit. Although no
nuclear power plants operate in the country, several Italian engineering
companies are active in the sector abroad.
Ultimately, however, any nuclear renaissance would almost certainly require the
participation of firms in countries that already have active nuclear power
plants, such as France or the U.S.
Utility company Enel, infrastructure giant Leonardo, and energy engineering firm
Ansaldo Energia — all under varying levels of state ownership — have formed a
consortium called Nuclitalia to study viable options for a return to nuclear
power. In June, Italy joined the French-led European Nuclear Alliance, an
initiative aimed at promoting nuclear energy throughout the EU.
Speaking at the Confindustria event, Fratin said there was a need for a
continuous source of power to integrate with the variable energy produced by
renewables. Nuclear was the obvious choice, he said, though officially, a final
decision will follow a careful study of the costs and benefits.
“We are a country that at the moment … is not able to meet its national demand
for electricity,” Fratin said. “There is only one path for us to take if we want
to remain among the rich countries of the world.”
The lively discussion demonstrated that the debate has moved beyond the shadow
of Chernobyl to focus on financial arguments.
“When we talk about sustainability, we need to look at it from all angles,”
Katiuscia Eroe, a representative of the climate NGO Legambiente, told the
gathering. “Including the logic of costs, and therefore, economic
sustainability.” Nuclear, she added, wasn’t competitive with renewables given
the huge investments needed to get it up and running.
TINY TECH
Stefano Monti, president of the European Nuclear Society, told POLITICO that
nuclear power is key to providing a steady supply to the grid of decarbonized
energy, known as the baseload, supplementing renewables in moments when there
isn’t enough sun or wind.
The use of new technology is also politically important as it allows the
government to argue that the prior referendums don’t apply.
SMRs use miniaturized technology in effect to factory-produce key reactor
components, thereby achieving economies of scale and reducing costs. AMRs use
non-traditional fission technology and are powered by spent fuel from other
reactors, such as SMRs, potentially reducing the amount of nuclear waste that
needs to be stored. Neither has ever been built in Western Europe — while in the
U.S., one attempted SMR had to be abandoned after costs spiraled.
Monti said the government may ultimately revert to traditional power plant
designs, even though these have incurred huge cost overruns in Europe in recent
years. It may also be the case, he added, that the energy source will need to be
subsidized for a while.
Still, Monti said, nuclear energy was financially competitive with solar and
wind energy when considering the additional infrastructure, such as batteries,
needed to make renewables sufficiently reliable to power the grid.
Michele Governatori, an academic and a member of climate think tank Ecco, said
he didn’t think there would ultimately be any return to nuclear, “but that
doesn’t mean that it won’t cause damage.” The buzz around nuclear, he said, was
allowing the government to sidestep politically unpopular decisions on how to
accelerate the build-out of renewables.
He said the economics argue against fission — nuclear power is expensive and
plants have to be running 24/7 for the finances to work. But given the
fluctuating production levels of renewable energy, on sunny or windy days,
nuclear energy might end up going unused.
The government estimates there’s a backlog of 150 gigawatts of renewable energy
projects currently held up by paperwork. According to Governatori, Rome’s
embrace of nuclear energy was a way of avoiding a showdown with regional
governments over permitting problems, given that local authorities often hold up
developments due to so-called NIMBY concerns.
There are also lobbying interests in play. “The big national champions have a
bigger stake in nuclear than renewables,” said Governatori. Developers of
renewable energy tend to be smaller “and are more distant from the businesses
that are close to the state,” he said.
CONVENIENT CUDGEL
The government’s 2024 energy and climate plan estimates that nuclear power could
save approximately €17 billion in costs compared to an all-renewables strategy.
However, a report by Italy’s central bank found that while adding nuclear to the
grid may help flatten swings in electricity prices, it was unlikely to deliver
any savings.
A paucity of know-how risks delaying construction and adding costs, while “the
processing, enrichment and preparation of fuel is concentrated in a few plants,
largely in countries with elevated political risk (Russia first and foremost),”
the central bank noted.
Meanwhile, while the previous referendums may provide ammunition for the
opposition to criticize the government, they are unlikely to pose a significant
obstacle.
“The previous two referendums don’t create any obstacle whatsoever for the
current governing majority,” said Carlo Fusaro, a law professor at the
University of Florence. Referendums in Italy can revoke laws that are already on
the books, but they don’t tie the government’s hands in perpetuity, especially
as the last one was more than a decade ago.
In theory, the opposition could call another referendum if it’s able to gather
the required signatures, though polls show that public opinion has grown
steadily more pro-nuclear.
Five Star’s Cappelletti said it’s premature to discuss the options, given that
the law has not yet been presented. “We’ll see how things evolve. We can’t
exclude anything, even eventually proposing a referendum.”