Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Countries ‘furious’ over EU reluctance to consider gas price cap

Countries ‘furious’ over EU reluctance to consider gas price cap

The Commission is only promising to ‘deepen its analysis’ if countries press for a cap.
The European Commission has some explaining to do Friday when national energy ministers gather to discuss ways to lower energy prices, several diplomats said.

They want to know why Brussels still hasn't detailed what a cap on the price of imported natural gas could look like — three weeks after being asked to do so at the last emergency Energy Council.

That demand was again pressed this week by 15 energy ministers, who sent a letter to Energy Commissioner Kadri Simson urging her to prepare a detailed menu of gas cap options before Friday, "followed by a legislative proposal as soon as possible."

Despite the growing momentum for direct intervention in the gas market, the EU executive is digging in its heels.

A Commission policy paper meant to guide Friday's discussion consists mainly of warnings against capping the price of all gas imports, and encourages countries to consume less and renegotiate better supply contracts with "reliable" suppliers like Norway and Algeria.

It also re-proposes Commission President Ursula von der Leyen's widely panned idea to only cap the price of Russian gas imports.

One national diplomat summarized the general reaction to the reheated policy leftovers: "Da fuck is this?"

"It has been three weeks since we said what we needed, and the Commission is just focusing on risks," complained another. "If we just speak about disadvantages and not advantages we won't get much further."

Countries "are furious the Commission is playing hide and seek on a gas price cap,” a third diplomat said.

"Many countries criticized the paper, and we will make this very clear [on Friday]," said a fourth.

"Hopefully the Commission will take into account the outcome of the discussion and not push its own idea of a Russian-only cap anymore," a fifth EU diplomat said.

A draft Council compromise obtained by POLITICO shows agreement on less controversial measures, such as a 10 percent power demand cut over the winter period and windfall taxes on energy producers.

But on gas, "don't expect anything final," a Commission official warned.

As capitals gear up for the fight, Brussels insists it is doing all it can — even as it plays for more time.

"There is no confrontation, we are seeking common ground to address an exceptional situation," a second Commission official said Thursday. On a gas price cap, "we did lead with addressing risks ... but of course, if the member states consider we need to go in that direction, we will deepen our analysis."

That's time EU countries say they don't have: Heating season begins on Saturday, and spot gas prices are still nearly five times higher than a year ago.

But Paris, at least, says Brussels is slowly — if grudgingly — coming around to the idea of allowing gas prices to be subsidized.

"The Commission laid out its preliminary ideas, which go in the right direction ... particularly the possible extension of the Iberian mechanism to the entire EU market," said a French energy ministry official.

That refers to a special system enacted by Spain and Portugal, under which the price of gas used for electricity production is partially subsidized, in a bid to lower power prices — without directly intervening in the bidding process on wholesale markets.

Germany announced Thursday it would implement its own version, issuing €200 billion in fresh debt to set a limit for wholesale gas prices and pay the difference between that cap and the actual cost to import from global suppliers.

The issue is highly political, and will be further discussed by EU leaders at an informal meeting in Prague next month.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×