The EU heads of state and government have agreed to work towards a price ceiling against extremely high gas prices. “We will introduce a market correction mechanism to limit periods of excessive gas prices,” European Commission president Ursula von der Leyen said Friday evening after about ten hours of negotiations at the EU summit in Brussels. Your authority is working with the ministers of the EU countries on a legislative proposal.
The summit’s closing statement specifically refers to a “temporary dynamic price corridor” for gas trading. However, this should not jeopardize security of supply. In addition, a cost-benefit analysis is performed for a price cap for gas used for electricity generation. The maximum price may not lead to an increase in gas consumption.
“We Got Together”
15 of the 27 EU countries had previously spoken out in favor of a gas price ceiling, but Germany in particular resisted, alienating the traditional cooperation partner France. German Chancellor Olaf Scholz was satisfied after hours of deliberation. “We got together,” he said. He rejected the impression that Germany was isolated. At the same time, he reiterated his skepticism about the “Iberian model”, which is strongly favored by, among others, Chancellor Karl Nehammer (ÖVP).
“Advice with good news”
Before the summit, Nehammer had expressed his annoyance that the gas price ceiling applied by Spain and Portugal had not been included in the European Commission’s package of measures. After the deliberations, however, the Chancellor was satisfied. “It’s actually good news advice,” he told reporters. Firstly, according to Nehammer, the “Iberian model” is being further developed by the European Commission. “It’s real progress because at first it looked like we weren’t going to make it.”
Gas procurement is now being implemented
Second, there must be a gas price ceiling. This means a possible upper limit of the price on the wholesale price TTF on the Dutch stock exchange in order to limit price fluctuations. Equally “gratifying” is the agreement on a joint gas purchase. This should now be “actually implemented,” Nehammer emphasized. Fourth, to support financially weak countries in the energy crisis, existing funds should be used and no new funds should be filled.
Nation states should help “acutely”.
The gas price ceiling could already be implemented, the chancellor explained. The “Iberian model” is much more complex because it affects many more European countries and there are still open questions about its implementation. “But for Austria, the progress was important that it is not rejected from the start,” Nehammer said. Germany had expressed “great concern”.
The chancellor also stressed that nation-states must now help “acutely”. The European Commission has promised that all aid measures will be handled more simply “administratively”. When it comes to financing the “Iberian model, that’s more complicated, we’re still talking months,” explains Nehammer.
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.
