According to the Associated Press, EU leaders spent hours trying to reach a compromise on an agreement to lower energy prices, which have risen significantly for people and businesses in the 27-country bloc.
During the ongoing talks in Brussels yesterday, the differences between the southern and northern members became apparent. Mediterranean countries, led by Spain, called for market intervention through measures such as price caps, while Germany and the Netherlands opposed radical options.
However, the leaders agreed to the proposal of the European Commission to start joint purchases of natural gas and ensure that EU storage facilities are almost completely filled in order to avoid a new energy crisis associated with the EU’s dependence on Russian energy resources.
The Associated Press reported that they are too dependent on Russia for oil and gas to heat their homes and fuel their industries.
Earlier, the US and the EU announced a new cooperation to reduce dependence on the continent of Russian energy. According to the plan, the US and other countries will increase LNG exports to Europe by 15 billion cubic meters this year. Larger volumes will be supplied in the future.
Faced with protests in the homes of farmers, truck drivers and fisheries representatives, Spanish Prime Minister Pedro Sanchez proposed EU plans to decouple electricity from the price of gas. However, these radical options do not yet cause a consensus. The EU will return to the issue in May, and in the meantime, Spain and Portugal may receive special permission to contain the sharp rise in prices.
“The Iberian Peninsula is in a special position.
“Renewable energy sources make up a large part of the energy mix and that is a very good thing,” European Commission President Ursula von der Leyen said after the summit. which it finds and control electricity prices in the way we have discussed.”
French President Emmanuel Macron said the divisions in the European Council are diverging.
were the premise of an extremely lengthy debate. “Because the interests and energy models of different countries do not coincide,” he said.
In the face of high energy prices and reduced supplies, the EU is drawing on the experience of the previous crisis – the COVID-19 pandemic – as a model for finding a solution to the energy problem. Member States then banded together and jointly procured huge quantities of vaccines to ensure they were distributed equitably.
“The reason for high electricity prices is largely due to high and fluctuating gas prices,” said von der Leyen. “So we will join forces, pool our demand and use our power to collectively bargain for gas purchases. In addition, we need to complete our gas infrastructure and replenish our reserves. This will be our insurance against supply disruptions. we are also looking at the design of our energy market.”
Even before the Russian invasion of Ukraine, Europe was under severe pressure from the prospect of economic slowdown accompanied by rising inflation driven by high energy prices. The European Commission predicts EU economic growth will decline from 5.3% last year to 4% this year and 2.8% next year.
At the March 11 summit, European leaders reached an agreement in principle to eliminate dependence on Russian gas, oil and coal imports by 2027. The EU currently imports 90% of natural gas used for electricity generation, home heating and industrial supplies, while Russia supplies almost 40% gas to the European Union. a quarter of your oil.