Energy, there is the EU agreement on price caps and joint purchases of gas

Ursula von der Leyen – Photo by Ansa Foto

Common gas purchases, price caps and maybe a new Sure. After almost twelve hours of negotiations, the European energy agreement has arrived, which will bring together the Twenty-seven.

The Commission has officially received the mandate to build a global platform to negotiate gas purchases. Each country can decide whether or not to participate, but it is mandatory for 15% of the total European storage volume.

The Commission will then be able to take “concrete decisions” on the price cap at Ttf in Amsterdam, but on condition that it is temporary and does not jeopardize supplies. The leaders also gave the Commission and the energy ministers a mandate to carry out “a cost-benefit analysis of the measure”.

The approved model is that of Spain, supported by France but not by Germany, and could pave the way for a new Energy Security. Among the measures is also the “mobilization of the relevant instruments at national and European level” to “preserve the global competitiveness of Europe in order to maintain fair conditions and the integrity of the single market”.

Country positions

According to the Netherlands and Germany, there will be no need for new joint debt, because there is sufficient cash available. Emmanuel Macron, on the other hand, believes that the options are a Sure 2 or use the loans still available in the RePowerUe of around 200 billion.

Another extraordinary Energy Council is scheduled for 18 November. “We have asked the Commission to act urgently in the coming weeks. Next week there will be an Energy Council which will allow us to move forward and there will be the work of the Commission which has now received support on all the proposals it has made. The next two to three weeks will allow the Commission to clearly produce this mechanism. At the end of October, beginning of November, we can have him at work.

40 billion will not be enough

Many countries have also called for a greater commitment from the EU to avoid fragmentation of the single market and to help businesses and families. On the table, 40 billion euros remain from the 2014-2020 budget, of which a fifth is allocated by Germany alone. They will probably not be enough and the need to open a new joint debt may arise.