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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 find out how to restrict fuel costs to scale back hovering payments within the bloc.
Nonetheless, 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 worth cap on fuel — however Germany and the Netherlands concern such a market intervention may put their safety of provide in danger.
“There are some dangers which should be mapped out,” Rutte mentioned. “Corporations which have already purchased fuel for the next worth could possibly be deprived. And it may scare away suppliers who need the total worth — whereas we might solely be ready to pay 80 p.c”.
Rutte additionally mentioned imported liquified pure fuel may go to different international locations with no worth caps, corresponding to China. Suppliers in Norway may additionally resolve to not promote for a lower cost than the market worth, 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 worth hall on pure fuel transactions” that will restrict worth spikes, and a worth cap on fuel used to generate electrical energy, together with an impression 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 because of this cover on fuel used for electrical energy technology.
Whereas Germany has been slammed for blocking a possible deal over worth caps, Sanchez mentioned that chancellor Olaf Scholz has had a “management position” and a “constructive” angle through the negotiations.
And others echoed the identical message of widespread understanding.
“No one was blocking only for blocking, some international locations simply have considerations in regards to the safety of provide and we share these considerations. 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 succeed in an settlement over emergency measures to sort out the power disaster. Nonetheless, they may solely attain an settlement later in November throughout a unprecedented assembly being ready by the Czech Republic, which presently holds the EU Council presidency,
Joint buying
EU leaders additionally agreed on Thursday to advance work to voluntarily purchase fuel collectively via 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 everyone shopping for fuel individually,” Rutte mentioned. “This may mute fuel costs and I hope it’s going to enthuse others to hitch and use the platform.”
The purpose of this mechanism is to fill EU fuel storages by not less than 15 p.c, 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 however it exhibits that is the precise approach to deal with them,” EU Fee president Ursula von der Leyen additionally mentioned.
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