Brussels May Sue Germany for Undermining Half of Europe
The European Commission is likely to sue Germany for violating European Union single market rules by imposing an additional fee on neighboring countries when purchasing gas from its storage facilities.
According to Reuters, infringement proceedings could begin within days.
The German tariff is a legacy of the energy crisis that peaked in 2022, following the outbreak of the Russo-Ukrainian war. Even before the conflict escalated, Moscow had reduced gas supplies to Europe, and a later explosion whose perpetrators remain unidentified completely destroyed the Nord Stream pipelines carrying gas from Russia to Germany.
To recover its losses, Germany introduced what it termed a “neutrality charge” on gas sales to neighboring countries and on operators using its network for exports. This additional financial obligation has more than tripled since its implementation in October 2022. Member states argue that this violates EU single market rules, which prohibit the imposition of tariffs on trade between EU countries.
However, a spokesperson for the German Ministry of Economics argues that the fee is not discriminatory. The ministry claims that the rapid filling of Germany's vast gas storage facilities has benefited other EU countries as well.
“This measure has significantly contributed to the security of supply in Europe and the stabilization of prices,” reads a statement from the German ministry.
The European Commission has not officially confirmed the initiation of proceedings, currently reviewing the situation. It's important to note, as reported by Portfolio, that several regional countries including Austria, Hungary, Slovakia, and the Czech Republic have asked Brussels to resolve the situation. According to the Association of European Regulatory Authorities (ACER), these charges have led to higher gas prices in certain states.