EU energy ministers get mandate to cap gas prices
The gas price will be regulated, but just how it will be regulated will most likely be decided on Monday.
According to an EU source with knowledge of the summit negotiations, energy ministers can reach an agreement on gas price regulations Monday, after the EU heads of states and governments granted them a mandate to do so at Thursday’s summit.
As expected, the question was not finally resolved at the summit. Market correction mechanisms are so complicated that they are not suited to be negotiated at the short EU heads of states and governments summits.
The expectation – or rather, the hope – is that the regulation will be finalized on Monday. The goal is a price cap able to put the brakes on gas market TTF price fluctuations.
Nations like Germany, the Netherlands and Denmark are usually not eager to regulate markets, whereas countries like Greece are more keen.
Entering the EU summit on Thursday, Greek Prime Minister Kyriakos Mitsotakis stated:
”We have to send a very clear signal to the markets, but also to Russia. We will not accept that gas is utilized as a weapon at the expense of our citizens and companies.”
It seems to be difficult for the EU nations to come to an agreement. The proposal is quite technical and several of its parts affect each other.
Following an energy minister meeting in Brussels on Tuesday, the Czech EU representative attempted to limit the remaining discussion to the price cap itself.
According to EU nations like Spain, Greece, Belgium and Malta, the price cap should be set at EUR 200 or lower.
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