In the face of deep divisions between the European Union member states regarding the idea of setting a price ceiling, Brussels seeks to provide measures “subject to the maximum amount of consensus,” as the commission confirmed.
A summit conference of heads of state and government will consider these suggestions, which will be presented in Strasbourg, on Thursday and Friday before they may be approved in November.
On Tuesday, the European Commission announced that it would give a revision of the TTF Gas Index, which it claims is artificial speculation but which European operators view as a reference benchmark for transactions.
It is intended to be replaced within six months with a different indication that is more accurate in reflecting the actual supplies.
Until then, Brussels recommends a “temporary mechanism” to correct gas prices.
Brussels, on the other hand, wants to compel member states to agree to conduct joint gas purchases at the European Union level for the upcoming season in order to fill stocks, in an effort to obtain better prices than “trusted” suppliers, such as Norway and the United States, and to prevent the mass states from competition.
The European Union member states gave the green light in March to launch a joint purchase platform, but no deal was concluded through it, and the countries continued to negotiate unilaterally.
Through a union representing importing businesses, UNHCR now aims to involve the private sector further.
Additionally, the UNHCR will provide a framework for solidarity for nations at risk of running out of supplies as well as new methods to cut gas usage. Germany and the Netherlands have also asked for “more ambitious and mandatory goals.”
Winter, Hesm
The European economy is strongly suffering from Russia’s reduction in gas supplies, on which the mass depends greatly.
The disparity in interests across nations, such as France’s bet on nuclear energy, Germany’s reliance on coal, or the central European nations that depend on Russian supplies, make it extremely difficult for the European Union to come up with a uniform and cohesive answer.
On the other hand, it seems that the Commission’s suggestion to establish a limit on gas imports, which it later requested that 15 member states, including France, implement, has since been forgotten.
Berlin proposed it because of concern that it would heighten tensions over liquefied natural gas supply on a small global market.
During a meeting in Prague, European leaders expressed their concerns about the economic and social consequences of inflation.
“People will end up in the streets, the economy will be weak, there will be bankruptcies, and support for climate change programmes and funding for Ukraine will decline if we do not find a solution. This winter will be decisive,” said Czech Minister of Industry, Yusif Sikila last week..
In an effort to lower gas prices before “decisive winter,” the European Union
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