After hours of negotiations, the result of the two-day assembly of EU leaders didn’t ship any clear settlement on whether or not and methods to restrict fuel costs to scale back hovering payments within the bloc.
However, some leaders really feel that EU power ministers will have the ability to agree on a bundle of emergency measures within the subsequent weeks.
“We’re near the answer,” mentioned Spanish prime minister Pedro Sánchez on Friday (21 October) after the summit assembly in Brussels.
Spain, along with France, Italy, and Belgium, are among the many 15 EU international locations calling for an EU-wide value cap on fuel — however Germany and the Netherlands worry such a market intervention may put their safety of provide in danger.
“There are some dangers which must be mapped out,” Rutte mentioned. “Corporations which have already purchased fuel for a better value may very well be deprived. And it may scare away suppliers who need the total value — whereas we’d solely be ready to pay 80 %”.
Rutte additionally mentioned imported liquified pure fuel may go to different international locations with no value caps, reminiscent of China. Suppliers in Norway may additionally determine to not promote for a lower cost than the market value, he warned.
Of their summit conclusions, leaders referred to as on power ministers and the EU fee to “submit concrete choices” on a “non permanent dynamic value hall on pure fuel transactions” that may restrict value spikes, and a value cap on fuel used to generate electrical energy, together with an influence evaluation on the so-called Iberian mannequin.
In Europe, the “Iberian mannequin” is a reference to intervening within the markets, mentioned Sánchez, including that Spanish households have saved over €2.9bn due to this cover on fuel used for electrical energy technology.
Whereas Germany has been slammed for blocking a possible deal over value caps, Sanchez mentioned that chancellor Olaf Scholz has had a “management function” and a “constructive” perspective in the course of the negotiations.
And others echoed the identical message of frequent understanding.
“No one was blocking only for blocking, some international locations simply have issues in regards to the safety of provide and we share these issues. If some international locations do not get the fuel they want that is an issue for all of us,” mentioned Belgian prime minister Alexander de Croo, referring to the lengthy talks over power on Thursday.
“An answer is feasible,” he added.
EU power minister will meet on Tuesday (25 October) to debate particulars in a bid to achieve an settlement over emergency measures to deal with the power disaster. Nevertheless, they may solely attain an settlement later in November throughout a rare assembly being ready by the Czech Republic, which at present holds the EU Council presidency,
Joint buying
EU leaders additionally agreed on Thursday to advance work to voluntarily purchase fuel collectively by means of a joint platform earlier than subsequent winter.
The European Fee along with market gamers will now arrange a buying platform to “find provide and match it to demand as an alternative of all people shopping for fuel individually,” Rutte mentioned. “This may mute fuel costs and I hope it should enthuse others to hitch and use the platform.”
The objective of this mechanism is to fill EU fuel storages by at the least 15 %, which is round 10 billion cubic meters of fuel.
“I believe the market has responded positively,” Rutte mentioned, referring to fuel costs which dropped to a multi-month low. “I believe there’s much less scepsis in regards to the prospect of EU international locations working collectively.”
“Costs are nonetheless too excessive nevertheless it reveals that is the appropriate method to deal with them,” EU Fee president Ursula von der Leyen additionally mentioned.
