This new benchmark should better reflect the reality of the European gas market. The Commission is also tasked with developing a dynamic price corridor to reduce price volatility in natural gas transactions as soon as possible.
The European Council awaits a proposal for a temporary cap on the price of gas for electricity generation, supported by a cost-benefit analysis. We discussed how we can support the resilience of our economies, to protect our families and our businesses and to preserve our single market, the pillar of our prosperity, while avoiding fragmentation. We also need to protect the competitiveness of our companies compared to other regions of the world. We are already seeing, for instance, the first incentives for our companies to relocate their factories, notably across the Atlantic. So we must closely coordinate our national policies and have also agreed to mobilise all appropriate financial tools at national and European level to maintain a level playing field within our Union.
The Council will monitor the situation closely and act to ensure an appropriate policy response. Yes, these issues are complex, but we have entered into these debates confronting any taboos.
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On Wednesday, MEPs discussed the outcome of the October summit, which focussed on Russia’s war against Ukraine, energy, climate change, Iran and relations with China.
Opening the debate, European Council President Charles Michel said the last summit, which concentrated on energy prices, had been a “pivotal” one, awaited by citizens, businesses and governments alike. The summit had overcome differences and agreed on a plan, he told MEPs.
European Commission President Ursula von der Leyen told MEPs that the current energy context required “urgent actions and strategic foresight”. Gas storage needed to remain on everyone’s radar to avoid a scarcity by the end of next summer. She also highlighted that a quick transition to renewable energy is needed, notably through a proposal for a new emergency regulation that would simplify permit requirements to unlock many renewable energy projects. Maintaining European industrial competitiveness through more flexible state aid rules and REPowerEU is also a priority, she said.
MEPs demanded that the work on reforming the electricity market should speed up in order to decouple electricity prices from those of gas. Unused loans in the Recovery and Resilience Fund should be used to improve energy infrastructure, and renewables should be deployed more quickly. They also called for further measures to protect citizens and businesses who are struggling to pay rising energy bills, as well as a windfall tax on the profits of energy companies. Several MEPs highlighted the need for action to ensure that EU industries do remain competitive, given that non-EU countries in some cases heavily subsidise their own industries.
