Belgian Prime Minister Alexander De Croo expressed satisfaction on Friday with the outcome of the day’s long discussions between Heads of State and Government: a mandate was given to the Commission to carry out joint purchases and to urgently study with the options industry as the opportunity for a gas price cap.
The 27 have agreed on joint gas purchases – on a voluntary basis – to take advantage of the weight of the EU to negotiate lower prices, as well as on common storage capacities to help Member States who do not have enough, and thus stabilize hyper-nervous energy markets.
Belgium will participate, said the head of the federal government. “We don’t have a gas supply problem, but the prices are high, so it’s a good idea to participate. The Commission will contact Fluxys“, explained Mr. De Croo at the end of the summit.
The highly sensitive idea of public intervention in liberalized energy markets to cap gas prices has been the subject of intense discussion. Among the countries that are in favor of it, Belgium wanted to consider it as a measure of last resort and temporary, in the event of a strong disconnection between the markets and reality. The Italy of Prime Minister Mario Draghi, former President of the ECB, also pushed in this direction, in the face of countries such as Germany and the Netherlands, which consider this intervention on the markets too brutal and fear harmful effects, as a diversion of energy companies to other uncapped outlets.
In the end, the Council conclusions instruct the Commission to urgently study such a price cap with the industry, as well as other short-term measures such as the energy voucher, tax rebates, reductions in VAT , etc
For Alexander De Croo, “it’s a foot in the door“. “The fact that the technical implementation will be done with the industry has reassured some countries“. As to whether this study is not a promise of delays, “I sensed the President of the Commission, Ursula von der Leyen, very enthusiastic, her services will start tomorrow“, according to Mr. De Croo.
The Prime Minister stresses the interest of having such a tool in his box, although he is well aware that the most useful measures to lower bills will be joint purchases and the disconnection of Russian fossil fuels. A good example was given this morning with the announcement by the United States and the Commission of additional supplies of American liquefied natural gas (LNG) to the EU, he said.
