Europe
2022.10.12 19:42 GMT+8

Divisions deep as EU states battle over energy crisis, gas price caps in Prague

Updated 2022.10.12 19:42 GMT+8
Pablo Guttierez in Prague

No agreement has been reached on a possible European Union-wide cap on gas prices.

Amid cuts in Russian supplies, the cost of gas has risen by more than 150 percent across Europe since last year.

In Prague, EU ministers are discussing the energy crisis after months of divisions on this issue, with the hope of finding a plan that all 27 member states will back.

But divisions run deep.

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Some EU nations have proposed capping the price of Russian gas imports, while others want to limit the cost of gas used to produce electricity. Italy, for instance, has laid out a proposal to "redesign the electricity market," while European Commission President Ursula Von der Leyen has tabled a "road map of measures" to ease the burden.

Yet so far no concrete plan has been offered by Brussels and some member states, like Germany, are growing impatient.

Berlin poured fuel on the fire recently by announcing that it would shield consumers from the rising price of fuel with a $196 billion subsidy. The plan came immediately under attack as EU countries accused Germany of using the crisis to gain an unfair competitive advantage.

EU nations continue to battle it out over a bloc-wide response to Europe's energy crisis. /Leonhard Foeger/Reuters

Energy, specifically coal, brought Europe together after World War II and energy, specifically gas, is testing that unity.

"We are in contact with the German authorities," said EU spokesperson Arianna Podesta. "As we said many times, it is for them to assess if the specific measures constitute state aid, and if this is the case, they will have to notify to us for assessment before granting aid."

Charles Michel, president of the European Council, has called on EU countries to take a "quantum leap" and work together to solve the current gas crisis.

"By launching a war on Ukraine, Putin has also fired an 'energy missile' at Europe," wrote Michel on a European Council newsletter.

Michel urged EU leaders to establish a "genuine energy union" as "an essential pillar" of EU sovereignty.

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