Meeting of the EU energy ministers: What to do against ever higher gas prices?

Today the EU energy ministers are meeting for an emergency meeting. Everyone wants to take action against the high prices for electricity and gas. But the measures are controversial – especially a possible price cap for gas imports.

Just a few weeks ago, at the last meeting of EU energy ministers, there was a hint of confidence in the face of the energy crisis, at least from Federal Economics Minister Robert Habeck. Compared to the worst expectations after the end of gas supplies from Russia, the situation has stabilized. “Since then, the situation has changed in two ways: Germany no longer gets Russian gas, and we can still store it,” Habeck said at the time. “That means the market no longer expects us to collapse if no Russian gas comes. That’s immense progress, a big political step.”

New situation due to pipeline attacks

Even the gas price showed a slight downward trend. But now the tide has turned again. For the worse. It is the leaks in the two Baltic Sea pipelines Nord Stream 1 and 2, which were obviously caused by targeted attacks, that give many people in Brussels bad suspicions. No more gas comes from Russia to Europe through the two tubes. What is bubbling square kilometers into the Baltic Sea off Bornholm is only the residual pressure of what was still inside.

But it has a massive climate-damaging effect. And it shows how vulnerable Europe’s energy infrastructure is. What – so many ask – if active pipelines were attacked? Like the two tubes through the North Sea from Norway or the Baltic Pipeline, which transports Norwegian gas to Poland?

EU wants to better protect infrastructure

Didier Reynders, EU Commissioner for Justice and the Rule of Law, therefore explains: “We have already strengthened our measures to protect our critical infrastructure – so that we can protect it better. And we will agree to now further strengthen these steps with binding agreements .” In addition, everything is being done to find the perpetrators of these attacks. There is also talk of retaliatory measures in Brussels.

Gas prices continue to rise

In any case, the price of gas has continued to climb since then. And anyone in the EU who believed that the situation would at least ease up a little is mistaken.

The energy ministers actually wanted to focus on the electricity price today. In order to push that, a maximum price should be set for the electricity producers as soon as possible, so that the expensive gas-fired power plants are no longer decisive for what consumers see on their electricity bills.

EU plans to relieve consumers

And with an excess profit tax for those who are currently earning splendidly from expensive electricity, namely the green electricity producers in particular, the aim is to at least relieve low-income households in Europe from the high energy costs. That is the plan: a corresponding proposal from the EU Commission, coordinated with Germany and France, is on the table.

French President Emmanuel Macron says: “The good approach is to pursue a common European plan here, because the member states can draw on this revenue. That’s why it’s a plan that Germany and France support together.” However, there is still no sign of a majority in favor of this among EU energy ministers.

Import price cap is intended to control market

So it’s going to be difficult deliberations. Even worsened by a letter from 15 member states to the EU Commission. In it they demand a Europe-wide gas price cap – but not for consumers, but for importers. Europe should buy the gas for the Union together and no longer pay every price that the market demands.

And this is where France and Germany disagree. While France supports such a path and signed the letter, the federal government is skeptical.

There may be a reason for this: Many EU countries accuse Germany of buying the gas market more or less empty in the past few months and paying top prices for it. And it’s true: Germany’s gas storage facilities are now almost full. Despite the energy crisis. Or maybe: Exactly because of that.