The energy ministers stated that an initial package of steps will be implemented to control the crisis, and the European Union vowed to contribute a lot next week if the situation worsens. The European Union called for an immediate conference to address the gas problem.
In a related vein, the ministers agreed to cut electricity usage and solicit earnings from energy firms for redistribution to consumers who are suffering greatly as a result of the crisis.
Regarding the commission’s proposals, which ministers addressed on Friday, one EU diplomat stated: “There are definitely those around the table who say this is not enough, there is more to be done, and we have no interest in having energy costs cause instability in member states.
According to Simon Taglipeter, an energy specialist at the Bruegel Research Center, “the energy crisis in Europe is already starting to touch the country since wholesale price hikes are still feeding on the bills of businesses and households, thus the cost to the economy will become bigger.”
Tagliabitra cautioned that the crisis was far from resolved and that because this year’s inventories were created through Russian imports, which might be fully cut off by next year, raising next year’s gas storage levels might be more difficult than it was in 2022.
The French government recently announced that protection will be extended for households and small businesses next year by capping price increases for natural gas and electricity at 15%. This protection will cost the state a total of 45 billion euros, but the net cost will only be 16 billion euros after money is recovered from energy producers.
Eduard Heeger, the prime minister of Slovakia, has warned that the country’s energy situation is becoming so dire that heavy industry will have to shut down within weeks unless Brussels provides a comprehensive solution. His country currently spends 24 billion euros, or a fifth of GDP, on energy support costs.
a conference to address the European energy issue
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