As an emergency measure against high energy prices, more than half of the countries in the European Union have called for an EU-wide price cap. Greece, Italy, Belgium, France and 11 other countries sent a letter to EU Energy Commissioner Kadri Simson on Tuesday with the corresponding demands.
In it, the governments call on the European Commission to immediately propose a maximum price for gas. It should concern gas supplies from abroad – such as imports from Russia and other countries – but also transactions at wholesale centers within the EU, according to the letter available to the German news agency.
European Commission wants to deduct excessive profits
The states left it open what that might look like in concrete terms and how high the lid should be. It is clear that the previous proposals from the European Commission, which is responsible for legislative initiatives, do not go far enough. The government had not recently made any concrete proposals for a gas ceiling to counter the high prices. Instead, she suggested skimming off the excessive profits of oil and gas companies and many electricity producers first and using the money to relieve consumers.
According to the authorities and economists, a price cap would be an even more drastic intervention in the market. It is feared that this would lead to third countries supplying less or no longer supplying gas to EU countries and selling it elsewhere, for example to Asia. However, the states state in their letter that a price cap can curb inflationary pressures while managing expectations. “It can be designed to ensure security of supply and free gas flow within Europe, while at the same time meeting our common goal of reducing gas demand,” the states write.
Germany does not want a price ceiling
Germany in particular had spoken out against a price ceiling. The Federal Republic of Germany hardly gets any gas from Russia anymore and pays a lot for supplies from other countries such as Norway. “It would certainly be a big problem for Germany if you couldn’t bid higher than other member states to get the gas you need in Germany,” said economist Georg Zachmann of the Brussels think tank Bruegel of the German Press Agency. “It would be attractive for some well-supplied EU countries if the Germans could no longer buy the gas and drive up prices.”
The letter is signed by Belgium, Bulgaria, Croatia, France, Greece, Italy, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia and Spain. EU energy ministers will meet on Friday to decide on possible emergency measures.
Source: Krone
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