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European Union leaders will lock horns on Friday over whether and how to cap gas prices, as they attempt to curb a surge in energy prices that threatens to push the 27-nation bloc into recession and disrupt the EU’s cherished single market.

Fifteen EU countries want a price cap on gas, but do not agree on the details of how it should be done.Fifteen EU countries want a price cap on gas, but do not agree on the details of how it should be done.

“It’s not a topic that the leaders will solve. The leaders need to provide strategic guidance and then the energy ministers and finance ministers can come up with the appropriate solutions,” the official said. Germany, the Netherlands and Denmark oppose price caps, worried such a measure would disrupt the market and make it difficult for them to buy the gas they need to keep their countries running.

A document outlining the idea, reviewed by Reuters, said that would ensure the measure did not compromise Europe’s energy security – wiggle room that some EU officials said could offer a route to compromise with sceptical states. While welcomed by voters, such measures work against the European Central Bank’s efforts to bring down inflation and can threaten fair competition in the bloc because not every country can afford the same amount of support to businesses.

 

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