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Not only in Ukraine, but all over Europe, many people will remember the moment when they learned that Russian tanks were rolling toward Kyiv and Russian missiles hit numerous cities in Ukraine. February 24, 2022, was half a year ago now. Ukraine celebrated its national holiday yesterday in the shadow of the Russian invasion. 31 years ago, on August 24, 1991, the former Soviet republic declared its independence. Brussels also commemorated the occasion. A 30-meter flag of the country was unfurled on the Grand-Place, in the presence of Ursula von der Leyen, among others. Europe stands by Ukraine today and in the long term, the EU Commission President said in a video message in the morning. German Chancellor Olaf Scholz reiterated that Ukraine is part of the EU, and US President Joe Biden pledged further military support. Read more in the News.
The common goal of the member states to save gas has only briefly eased the situation on the energy markets; recently, prices for electricity and gas have risen significantly once again. Now, the Czech Council Presidency has come up with a proposal to tackle the problem of high prices throughout Europe – in the form of a maximum price for energy. The Spanish model of an energy price cap is currently being discussed in the EU, said Patrick Graichen, State Secretary in the German Ministry of Economics yesterday. Experts, however, think nothing of this idea, as Manuel Berkel has found out.
It’s not just the shortage of Russian gas that has the energy markets in turmoil. The drought and extreme heat affect power generation in many European countries. Electricity exporter Norway, for example, has announced that it may halt its deliveries to the EU in the coming months. This is because the Nordic country’s water reservoirs are unusually empty. Troubling news has also come from France and Italy. It is now becoming apparent how vulnerable power supplies are to the effects of climate change, writes Claire Stam. Due to the close interconnection of European energy markets, there is a risk of a domino effect.
Sarah Schaefer
Feature
Spain’s energy price cap becomes a model
Gazprom has once again successfully startled Europe’s capitals. Since the recent announcement of alleged turbine maintenance, the price of gas for December has risen by more than 14 percent, and the price of electricity for the coming year by almost 19 percent. The Czech presidency is now considering calling an extraordinary energy council. This was reported yesterday by the ČTK news agency after a press briefing by the Minister of Industry and Trade, Jozef Síkela. He was just recently hailed for his negotiating success at the end of July, when the EU energy ministers agreed on a common gas savings target.
The markets were only briefly reassured by this consensus. The high energy prices are a Europe-wide problem for which a Europe-wide solution should be found, Síkela is now quoted as saying. The former banker’s proposal raises curiosity: A possible solution would be to set a maximum price for energy. The Czech Republic is certainly one of the countries that would support this path, Síkela said. The next energy council was previously scheduled for October 25.
At previous EU summits, EU-wide price caps had always been rejected. Although the Commission itself suggested national price caps as a possible solution, it only approved subsidies for individual countries on a case-by-case basis and left the fundamental solutions to an ongoing review process.
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