A third of current imports are to be replaced by American liquid gas. The deal presented by US President Joe Biden and Commission President Ursula von der Leyen provides for the EU to buy an additional 15 billion cubic meters of liquefied natural gas (LNG) this year alone.
Opinions also differed for a long time yesterday on the EU Commission’s proposal to make gas purchases jointly. So far, the purchases have been made by companies and not by states.
But now things should be different: “I welcome the fact that we will use our joint negotiating power,” said Commission President Ursula von der Leyen after the summit on Friday evening. “Instead of outbidding each other and driving prices up, we will pool our demand.”
However, it is questionable whether all states will actually follow suit. Germany’s Chancellor Scholz insisted that the step was voluntary. Private companies would continue to buy gas in the future, said Scholz.
No price caps
The discussions were also tense when it came to the question of how the increased gas prices could be contained. Spain and Portugal may introduce a price cap for energy costs with a time limit. Austria, the Netherlands and Germany reject such a measure. It was better to let the free market regulate this, they said. Compensation payments are then conceivable.
The countries and the Commission now want to discuss with stakeholders in the energy sector whether and how, among other things, price caps or tax rebates could help to lower the gas price and combat its “contagion effect” on the electricity markets.
At the same time, the heads of state and government are calling for proposals from the Commission to tackle high electricity prices, safeguard the integrity of the internal market and create incentives for the energy transition.