The EU gas price cap is not there (and it is unlikely that there will be)

The EU gas price cap is not there (and it is unlikely that there will be)
The EU gas price cap is not there (and it is unlikely that there will be)
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We’ve been talking about it for months. And for months progress has been announced, possible mediations and unexpected slowdowns. But the essence, to date, is that the EU ceiling on the price of gas there is and hardly will be. The proposal, put forward before the summer by Mario Draghihas been weakened by crossed vetoes and also by the passage of time, which has made a potentially disruptive measure such a partial remedy as to risk becoming irrelevant.

What happened in the meantime? It was understood that a ceiling on the price of Russian gas alone, with the substantial reduction of dependence on supplies from Moscow, would make little sense. Not only. The opposition to a general ceiling on the price of gas has become increasingly evident, a measure that would have a significant impact but that would reduce, and not a little, the earnings of several European countries, from Norway which produces so much to the Netherlands which hosts , in Amsterdam, a stock exchange that would have seen its weight and the commissions that feed it downsize.

Even today’s words of the president of the EU Commission, Ursula Von der Leyen, which until yesterday has supported and repeatedly announced the turning point, are a clear signal. The premise is always the same. Russia “continues to actively manipulate our energy market. They prefer to burn gas rather than deliver it: this market no longer works”. What changes are instead the remedies to be put in place to counter this distortion. And also the timing with which the interventions will be effective.

The EU “will develop a series of measures with member states that take into account the specific nature of our relationships with” gas suppliers, from “unreliable suppliers like Russia to friends like Norway. I agreed with the Norwegian Prime Minister of create a task force“to lower gas prices. We will then proceed to a structural reform.” The current structure of the electricity market no longer does justice to consumers, who should derive benefits from renewables. Therefore, we need to decouple the dominant influence of gas and the price of electricity. For this we will do a profound and comprehensive reform of the electricity market“.

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If there is a ceiling, it will be on extra profits and not on price. “We propose a cap on the revenues of the companies which produce low-cost electricity “. The revenue cap should generate” over 140 billion euros for member states, to cushion the blow directly. And because we are in a fossil fuel crisis, the fossil fuel industry also has special duties. The big oil, gas and coal companies are making huge profits. So they have to pay a fair share. They must make a contribution in times of crisis. “Then, there are savings. The cut in energy consumption will coincide with the sacrifices required of European businesses, workers and families. So much so that there is also room for unexpected praise. “The workers of the ceramic factories in central Italy have decided to shift their work shifts to the early morning, to benefit from the lower energy prices. Imagine parents who have to leave the house early, when the children are still asleep, because of a war they did not choose. This is one example in a million Europeans adapting to this new reality. “

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All reasonable measures but the gas price cap is moving away. Maybe definitely. The summary of the leader of the League, Matteo Salvini, it is effective. “I believe that due to conflicting interests there will not be, someone is gaining, Italy and Germany are the countries that are losing the most. I don’t think it will come, I’m ready to bet”. The same concern, from a different point of view, is shared in the Pd home. “We must recognize that more courage will be needed in the immediate future, especially on the roof of the cost of gas. It is clear that discouraging the government and running madly towards the vote has weakened these proposals. Italians will be able to choose between managers and adventurers”, he writes on Facebook the MEP and Vice President of the European Parliament Pina Picierno. (from Fabio Insenga)


The article is in Italian

Tags: gas price cap

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