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.
Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×