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
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×