EU gas price cap still elusive as leaders meet again over energy crunch By Reuters

© Reuters. FILE Picture: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, September 28, 2022. REUTERS/Yves Herman/File Picture

By Charlotte Van Campenhout and Jan Strupczewski

BRUSSELS (Reuters) -Leaders of the 27 European Union international locations fulfill on Thursday for the second time in two months to consider to deliver down power charges, even though persistent divisions between them mean the bloc is not likely for now to place a ceiling on what it pays for fuel.

The 27 are anticipated to back again elements of a package deal of EU electricity proposals created this week, including an option selling price benchmark for liquefied and joint fuel acquiring, immediately after before agreeing to fill gas storage and claw back again revenues from strength firms to spend on encouraging people with crippling charges.

But they continue to be as split as they had been months back on whether and how to cap gas price ranges to stem higher inflation and stave off economic downturn, immediately after Russia minimize fuel flows pursuing its invasion of Ukraine.

While 15 nations around the world including France and Poland are pushing for some sort of a cap, they encounter powerful opposition from Germany and the Netherlands – respectively Europe’s major financial system and gas purchaser, and a big European gasoline investing hub, which warn a gasoline selling price cap could compromise balance of materials.

“An arrangement is very unlikely… Opinions look to be really much aside,” a senior EU diplomat said in advance of Thursday’s talks.

A draft of the leaders’ summit conclusions, noticed by Reuters, would check with Brussels to suggest a rate cap on fuel employed to generate electricity – an notion favoured by France and currently utilised in Spain and Portugal.

But even in advance of the conference has begun, that notion has hit the roadblocks – with Germany requesting that all mentions of selling price caps are taken out from the textual content, in accordance to a document viewed by Reuters.

The leaders will also go over crisis expending to mitigate the outcomes the acute electrical power crunch has on their economies and 450 million citizens.

While some nations around the world have identified as for the bloc to issue new joint debt to finance that, far more frugal associates say hundreds of billions of euros unused from former programmes really should be spent to start with.

“Division is not a luxurious we can afford,” the summit’s chairman, European Council President Charles Michel, mentioned.

Specified EU countries’ assorted electrical power blend and pursuits, the conference dangers falling brief on shorter-term action to tackle high electricity selling prices forward of wintertime.

“Unity between member states is dangerously underneath force, with unilateral national choices getting announced devoid of an EU framework to retain them jointly,” said local climate change imagine-tank E3G.

EU strength ministers satisfy all over again up coming 7 days to explore the most recent vitality offer and purpose to agree on last steps in November – although for now, the deal does not consist of a proposal to immeditely cap gas charges.

“It is really very clear there is no a person size matches all. And which is a obstacle,” a further EU diplomat said.


EU leaders will also discuss selections for supplying additional aid to Ukraine, like delivering electrical power devices, serving to restore power provide and extended-term funding to inevitably rebuild the nation.

As regards bringing those people accountable for alleged war crimes in Ukraine to justice, some EU international locations want to set up a committed tribunal quickly, when other individuals are seeking to go a lot more slowly and gradually to ensure optimum worldwide endorsement.

“The European (Union) Council condemns in the strongest achievable terms the recent indiscriminate Russian missile and drone assaults focusing on civilians and civilian objects and infrastructure in Kyiv and throughout Ukraine,” the leaders will say, according to their draft assertion.

They will solitary out Belarus for enabling Russia’s war but are not anticipated to help even further sanctions in opposition to Moscow on Thursday.

The bloc is previously transferring to impose new sanctions on Iran more than the use of Iranian-produced drones in Russian strikes on Ukraine.

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