EU plans European gas price cap

Created: 2022-10-21Updated: 2022-10-21 04:06

EU Commission President Ursula von der Leyen arrives at the EU summit in Brussels.

© Geert Vanden Wijngaert/AP/dpa

Negotiations last late into the night.

Then comes the message from Brussels: An agreement has been reached - at least to some extent.

Brussels - The heads of state and government of the EU have agreed to work on a price cap against extremely high gas prices.

"We will introduce a market correction mechanism to limit episodes of excessive gas prices," said EU Commission President Ursula von der Leyen after around ten hours of negotiations at the EU summit in Brussels.

Your authority will work with the ministers of the EU countries on a legislative proposal.

The final declaration of the summit specifically mentions a "temporary dynamic price corridor" for trading in gas.

However, this should not jeopardize the security of supply.

In addition, a cost-benefit analysis is to be carried out for a price cap for gas used to generate electricity.

The maximum price should not lead to an increase in gas consumption.

In addition, Chancellor Olaf Scholz (SPD) and his colleagues supported in principle the EU Commission's latest legislative proposal to create the possibility of joint gas purchases.

French President Emmanuel Macron and Chancellor Olaf Scholz (SPD) at the bilateral meeting as part of the EU summit.

© Olivier Hoslet/Pool EPA/AP/dpa

In principle, more than half of the EU countries support a European gas price cap.

However, there are different concepts of how the price should be limited.

States such as Germany and the Netherlands had rejected a gas price cap, arguing, among other things, that this could jeopardize security of supply.

dpa