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EU: Von der Leyen is open to a general gas price cap

2022-10-05T10:32:25.317Z

The majority of EU countries are in favor of an upper limit on gas prices, Germany is against it. EU Commission chief von der Leyen is open and wants to negotiate a "price corridor" with Norway.



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Ursula von der Leyen: Prevent »crazy spikes« in prices

Photo: Philipp von Ditfurth / dpa

In the fight against high gas prices, a legal upper limit is one of the most discussed interventions to limit costs for consumers.

The European Union should introduce a temporary price cap for natural gas until a new price index can be introduced, EU Commission President Ursula von der Leyen said in the European Parliament.

"Introducing a gas price cap is a temporary solution until we develop a new EU price index that will ensure a better functioning of the market," she said.

In a letter to EU leaders meeting in Prague on Thursday, she will indicate that the EU should introduce a common energy procurement system.

But the Christian Democratic politician also warned: "Such an upper limit for gas prices must be designed in such a way that security of supply is guaranteed." In addition, it must be a temporary measure.

Negotiations with Norway are to be expanded

More than half of the EU countries had recently called for such a price cap.

However, Germany and other countries are skeptical - and argue that this would possibly result in insufficient gas being supplied to the EU.

Von der Leyen emphasized that this is a fine line.

In addition, should the state in Germany have to pay for the difference between the upper limit and the actual price, this could cost Germany tens of billions of euros a year.

As a first step, according to von der Leyen, such a gas price cap should only apply to gas that is used to generate electricity.

In addition, negotiations with trustworthy partners such as Norway would have to be expanded for further gas imports.

You have to agree on a price corridor so that there are no more "crazy peaks" in prices.

Federal Economics Minister Robert Habeck (Greens) recently complained about "moon prices" that friendly countries also achieved.

In addition, joint purchases by the EU states must be strengthened so that they do not outbid each other and drive up prices, said von der Leyen.

In principle, according to their information, the EU countries are buying less and less Russian gas.

Russian gas supplies fell from 41 percent to 7.5 percent of total imports.

The gas storage facilities are almost 90 percent full – 15 percent more than at this point last year.

Overall, gas consumption has been reduced by ten percent.

Apr/dpa/Reuters

Source: spiegel

All business articles on 2022-10-05

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