Diplomatic Briefing

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Newsline: EU diplomats discuss price cap on gas

Eyes were on the EU executive European Commission, which was expected to present an analysis on the feasibility of the bloc capping gas prices during a meeting of diplomats from the 27 EU member states on Wednesday. (https://finance.yahoo.com/news/1-eu-countries-odds-over-141709282.html) European Union countries were at odds on Wednesday over whether to cap gas prices in the bloc, with France, Belgium and 13 other states stepping up their call for the move opposed by Germany and others. The Commission’s document would not include legal proposals, sources said, but rather present an assessment of options countries could use to tackle high gas prices, which are stoking record inflation across the bloc and threatening a recession. A group of 15 countries including France, Italy, Spain and Poland urged the Commission on Tuesday to propose a price cap on all wholesale gas transactions to help rein in surging prices. But with Germany, the Netherlands and Denmark among those arguing that a gas price cap would harm efforts to contain Europe’s energy crunch, there were doubts as to whether any potential proposal could win sufficient support to become law.

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