December 1, 2022

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Meeting in Brussels: EU summit plans gas price cap – Scholz doesn’t feel isolated

Abroad Meeting in Brussels

EU summit plans gas price cap – Scholz doesn’t feel isolated

EU summit agrees on energy dispute

EU heads of state and government have agreed on a road map on the energy dispute. Council President Charles Michel said on Twitter that EU countries had reached an agreement at their Brussels summit. Chancellor Scholz considers the deal a good step forward.

President Olaf Scholes faced a lot of criticism at the EU summit in Brussels for Germany’s handling of the energy crisis. Ultimately, however, heads of state and government agree on a collaborative approach. But there is a lot of room for interpretation.

KA breakthrough, but unity preserved: In the dispute over the right measures to counter high energy costs, EU heads of state and government have reached a compromise. After about ten hours of negotiations, an agreement was reached at an EU summit on Friday night to work on a price ceiling against the highest gas prices and continue to explore other options. “We are united,” Chancellor Olaf Scholes (SPD) said in Brussels. This is a good sign of unity. However, the details of possible measures to curb gas prices are unclear.

Asked if he felt isolated in the energy debate at the summit, Scholz said: “Not at all.” Before the summit, Schalls was accused of being self-interested in the energy crisis. Even French President Emmanuel Macron warned against isolating Germany in Europe.

EU Commission President Ursula van der Leyen announced after the first day of the summit: “We will introduce a market correction mechanism to limit episodes of excessive gas prices.” His authority will now work on a legislative proposal with ministers from EU countries. This is.

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The summit’s conclusions on this matter speak of a “temporary dynamic price corridor” for gas trade, which, however, should not endanger the security of supply. The next meeting of energy ministers is next Tuesday.

Chancellor Scholz, who warned against a “politically determined price cap” ahead of the summit, described the proposal as sensible but not easy to implement. There are more difficult details to work out. His Dutch colleague Mark Rutte was similarly cautious: “We really have to examine all the advantages, disadvantages and consequences.” On the other hand, Austrian Chancellor Karl Nehhammer said the EU Commission could implement the gas price cap very quickly. Determines the maximum price.

A price cap on gas has been a demand for months

A price cap on gas in the EU has been called for for months. However, there are different opinions on how price should be defined. One possible option is a cap on the price of gas used to generate electricity. It should not come for now – also because of Germany’s resistance. First, according to the summit’s conclusion, there should be a cost-benefit analysis. In addition, such a model should not lead to an increase in gas consumption.

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Recording from the video of the Ministry of Economy

Less controversial at the summit was support for the EU Commission’s latest proposal to create the possibility of joint gas purchases. Companies in EU countries have to group their requirements, thus lowering the price in negotiations with other countries. During the year, countries outbid each other in the gas market. The aim is to have the new system up and running by spring. “I think it’s good progress,” Schales said.

With energy deterrence, the most controversial topic at the EU summit was cleared. On Friday, heads of state and government are expected to discuss, among other things, further support for Russia-hit Ukraine and relations with China.

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