The EU is grappling with high energy prices driving inflation and raising the prospect of recession across the continent, a situation aggravated by Russia slashing gas flows following its February invasion of Ukraine.The EU is grappling with high energy prices driving inflation and raising the prospect of recession across the continent, a situation aggravated by Russia slashing gas flows following its February invasion of Ukraine.
At a summit in Brussels on Thursday that ran late into the night, EU leaders eventually backed proposals made by the European Commission this week to launch an alternative price benchmark for liquefied natural gas and voluntary joint gas buying, although laws to make this happen will need to be negotiated over the coming weeks.
In their summit conclusions, EU leaders asked their ministers and the EU’s executive to “submit concrete decisions” on a “temporary dynamic price corridor on natural gas transactions” that would limit price spikes, and a price cap on gas used to generate electricity. Germany, the biggest EU economy, leads a small camp that has so far resisted calls from 15 countries to cap gas prices, saying it would risk suppliers freezing Europe out, and reduce incentives for energy saving.
“Solidarity should not just be on supply – it should also be on prices,” he told the gathering, according to the official.