Gas prices, sanctions, Hungary: the EU is closed

Created: 12/16/2022, 4:45 am

Roberta Metsola (lr), President of the European Parliament, Slovenia's Prime Minister Robert Golob, EU Commission President Ursula von der Leyen and Kaja Kallas, Prime Minister of Estonia.

© Olivier Matthys/AP/dpa

A satisfied chancellor, a mega deal - and no arguments until late at night: the last EU summit in 2022 was special in many ways.

However, the prospects are not equally rosy for all topics.

Brussels - At the last regular summit of the year, the heads of state and government of the EU countries cleared up a number of points of contention.

At the end of a year marked by the Russian war against Ukraine, the 27 states thus maintained unity after a number of blockades and much effort.

The agreements reached in Brussels yesterday include the ninth package of sanctions against Russia and the agreement to adopt a European gas price cap this Monday.

Another agreement provided Chancellor Olaf Scholz (SPD) with “a rare moment of satisfaction”.

Unlike usual, this time not even a session until late at night was necessary.

The decisions at a glance:

An end to skyrocketing gas prices?

Price cap decision is approaching

For months, Scholz has resisted politically setting a maximum price for gas because he sees security of supply at risk.

The EU summit has now agreed that work on this will be completed at a meeting of energy ministers this Monday.

However, Scholz hopes that the price cap will never take hold.

"However, the price cap (...) will be so high that I hope it will never become relevant," said Scholz after the summit.

Under pressure from price cap advocates, the EU Commission proposed capping the price for gas sold at the TTF wholesale site at EUR 275 per megawatt hour under certain circumstances.

A lower limit of 180 to 220 euros is now under discussion.

Dispute over Hungary package settled

After Poland shed its last doubts about an important directive for the international minimum tax for large companies yesterday, the formal decision for four decisions that had already been agreed on Monday was also made on the sidelines of the summit.

The Czech EU Council Presidency spoke of a mega deal.

This includes withholding 6.3 billion euros from the EU budget for the time being due to insufficient anti-corruption measures.

It is also about extensive EU aid for Ukraine, the Hungarian plan for using Corona aid and the directive for the international minimum tax.

With a view to the minimum tax, Scholz said after the summit: "We are now finally implementing a project close to my heart in Europe." This is an important step for global tax justice.

He had already campaigned for this agreement as finance minister.

"So allow me a rare moment of satisfaction."

Russia Sanctions, the Ninth

There is probably no topic that has occupied the heads of state and government as much this year as the Russian war against Ukraine and its effects.

Shortly before the start of the war, the EU states had decided on the first package of sanctions intended to hit the Russian economy hard.

also read

Wave of illness in the Kremlin probably triggers great concern for Putin

READ

Winter barbecues: Hearty, healthy and tasty throughout the cold season

READ

War with NATO?

Military expert stuns even Russian TV presenter: "Inevitable in the near future"

READ

Medvedev threatens the West with "the most powerful weapons of destruction" - Zelenskyj sets a condition for the peace plan

READ

From Putin friend to Kremlin enemy: Khodorkovsky describes three scenarios for the end of the Ukraine war

READ

Fancy a journey of discovery?

My space

Yesterday the Committee of Permanent Representatives of the Member States launched the decision for the ninth package.

For example, punitive measures against Russian banks and additional trade restrictions are planned - but also adjustments that should enable uncomplicated Russian food and fertilizer exports to developing and emerging countries.

Bosnia-Herzegovina follows Ukraine as a candidate country

There was good news for Bosnia-Herzegovina at the summit: following a decision by the heads of state and government, the country now belongs to the group of EU accession candidates.

The reason for the decision is also the concern that the Balkan country with around 3.3 million inhabitants could otherwise orient itself towards Russia or China.

After the summit, Chancellor Scholz emphasized that the government in Sarajevo still had a lot of work to do.

"It is clear to us that Bosnia-Herzegovina still has to implement substantial reforms before the start of concrete negotiations," he said.

Most recently, the EU officially named Ukraine and Moldova as candidate countries.

Trade dispute with ally threatens - 2023 will be crucial

How should the EU react to a US investment program worth billions that probably violates international trade rules?

States will have to give an answer to this question in the coming year.

That shouldn't be easy.

French President Emmanuel Macron spoke out yesterday in favor of reacting with a European support program - if necessary also disregarding trade rules.

Scholz, on the other hand, made it clear that he expected concessions from the USA and was skeptical about a new European investment program.

At the summit, it was agreed that Ursula von der Leyen's EU Commission should develop concrete proposals to protect Europe as a business location by the end of January.

Von der Leyen had already spoken out in favor of a far-reaching reaction at the beginning of the month.

She is touting additional money to boost clean technologies, to be provided through a new "sovereignty fund."

In addition, the President of the Commission wants to relax regulations for state investments.

Chancellor Olaf Scholz (SPD) speaks to media representatives at the EU summit in Brussels.

© Virginia Mayo/AP/dpa

The US program provides for billions in investments in climate protection and social affairs.

According to the EU Commission, this puts EU companies at a disadvantage compared to their US competitors.

Subsidies and tax credits are linked, among other things, to the fact that companies use US products or produce them in the USA.

dpa