Ahead of the informal summit of EU heads of state and government on Friday, the European Commission said it was open to a gas price cap on certain gas purchases. The European Commission is “ready to discuss an upper limit on the price of gas used to generate electricity,” Commission President Ursula von der Leyen said in Strasbourg. She wanted to inform the heads of state and government in advance in a letter.
“But we also need to look at gas prices outside the electricity market,” von der Leyen added. Until recently, the European Commission only advocated a price cap on Russian gas imports.
She had not previously proposed a price cap for all gas imports because she saw “risks to security of supply”, as it said in September.
Quarrels have been smoldering for months
Joint measures to limit gas prices have been the subject of discussion in Europe for months. Although a total of 15 of the 27 EU countries advocate a price cap for energy imports, Germany, for example, rejects this. German Economy Minister Robert Habeck justified this at the meeting of EU energy ministers last week with fears of “shortages” in supplies.
Video: EU criticism of Germany’s billion-dollar rescue package
The fact that Germany wants to introduce a gas price brake instead has been criticized in the EU. The other countries fear that this gives German companies a competitive edge because other countries do not have the financial means to dampen energy prices for their companies.
“Basic consumption” for gas subsidized by the state
The German gas price brake is an essential part of the 200 billion euro “defense shield” announced by the German traffic light government last week (see video above). With the gas price brake, a ‘basic consumption’ of gas is to be subsidized by the state. The details are still open.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
