An EU summit to find an energy price strategy

by time news

France’s President Macron warns Germany not to isolate itself in the energy crisis. Austria’s Chancellor Nehammer criticizes the EU Commission’s energy proposals.

The heads of state and government of the European Union began their deliberations on measures to counter skyrocketing energy prices in Brussels on Thursday. Despite widely divergent positions in the debates that have been going on for months, EU Council President Charles Michel expressed confidence in Brussels that an agreement is possible, even if it will probably be difficult.

On the negotiating table is a package from the EU Commission that provides for joint gas purchases and financial relief for companies and citizens, but no gas price cap that 15 EU countries had called for.

There are disagreements, among other things, between the two largest EU countries, France and Germany. “I think it’s not good, neither for Germany nor for Europe, that they are isolating,” criticized French President Emmanuel Macron on Thursday before a meeting with German Chancellor Olaf Scholz just before the EUsummit. “We absolutely must maintain our unity.” He will work with German Chancellor Olaf Scholz to find a solution.

Germany’s 200 billion package causes resentment

Germany has been criticized primarily for its 200 billion program to cushion high energy prices, which other member states see as distorting competition. Scholz again defended the German approach on Thursday and pointed out that other countries such as France acted similarly.

Germany is also being criticized for rejecting a European gas price cap that the majority of EU countries are calling for. France supports such a price cap, especially for gas used for electricity production. Macron spoke of “mechanisms to better separate gas and electricity prices from each other”.

Also Austria against gas price cap

Scholz again rejected a European gas price cap. The EU must agree on concepts that also work, said Scholz. “No one wants to make decisions that are theoretically good afterwards, but there is no gas,” emphasized the Chancellor.

Austria also completely rejects a price cap for Russian gas imports. A price cap is actually the right measure, but should not lead to the supply becoming scarce, for example through sales to Asia, said Federal Chancellor Karl Nehammer (ÖVP) before the EUsummit in Brussels. “Not having any gas at all is the real problem. It’s even better to have more expensive gas.” Despite all the contradictions, the summit send a strong signal, “that also depresses the price,” said the Chancellor.

Nehammer’s preference not shortlisted

Nehammer criticized the EU Commission’s energy proposals. The so-called “Iberian model” favored by him for decoupling electricity and gas prices is not among the proposals, criticized Nehammer. Gas would be bought jointly and made available to the electricity supply companies. Those companies that can now produce cheaply would also participate and share the financial burden. “There are major concerns in large countries like Germany that it is too strong an intervention in the market,” said Nehammer.

Hungarian Prime Minister Viktor Orbán complained to the EUsummit about his EU colleagues: “They told me that Russian gas was bad and that it shouldn’t be bought anymore. But nobody told us how Russian gas could be replaced,” Orbán said, according to “RTL.hu”. In connection with the EU’s planned coordinated gas purchase, Orbán said the idea is reminiscent of the times when we bought anti-corona vaccine together – it was slow and expensive.

Also focal points of summit meeting are the Ukraine war and the situation in Iran. Of the summit wants to condemn the indiscriminate Russian missile and drone attacks on civilians, civilian objects and infrastructure in Kyiv and Ukraine. A strategic discussion on China is also planned.

(APA/dpa/Reuters)

You may also like

Leave a Comment