France, Spain and Greece are calling for a pan-European response to rising energy prices
France and Spain have called for a coordinated European response to tackling the global phenomenon of rising energy prices. Aiming on the one hand to protect the poorest citizens and the competitiveness of businesses, on the other hand the corruption of Europe’s ambitious plan to stop CO2 emissions by 2050.
Gas prices in the European Union reached a record high on Friday, as the main EU supplier, Russia, “tightly” formulated the levels of gas supply, thus signaling further pressures on prices passed on to European consumers, even in view of of the coming of the winter season.
“What we are seeing is an unprecedented rise in energy prices,” Spanish Finance Minister Nadia Calvino told reporters as she arrived for talks between eurozone finance ministers in Luxembourg.
“This is not an issue we can deal with nationally, we need a coordinated market response,” he said, adding that his country had prepared a proposal on possible options.
La VP @NadiaCalvino participate in the reunion of #EurogrupoThe
Keep track of the economic situation and the evolution of the energy precision, as #Spain has a calendar to respond to that is transnational reto that requires urgent action at the international level. pic.twitter.com/0G0VMwd1gA– Economic Sound and Digital Transformation (@_minecogob) October 4, 2021
Calvino noted that one of these options could be to create a strategic European gas reserve, which would help the EU of 27 member states and 450 million consumers negotiate lower prices than if the markets themselves were made individually.
“We have learned through the vaccine supply negotiation that we are stronger when we speak with one voice,” he said.
He added that Spain would like to see action taken against speculation in the market for carbon dioxide emissions, which has also pushed up prices.
High energy prices are a matter of years, not months
For his part, French Finance Minister Bruno Le Mer stressed that he would propose better regulation of European gas reserves and linking the price of electricity with the cost of production in each EU country, as opposed to gas, which exists today. The
“The energy market has a significant advantage – it ensures energy supply throughout Europe. “But it also has a major drawback – aligning electricity prices with gas prices.”
The European energy market and a major shortcoming: the connection of electricity prices to gas prices. This is a verifiable economic problem for the French and the millions of Europeans, but also for the competitiveness of our companies.
The change is complete! pic.twitter.com/6dKFsZG7KX– Bruno Le Maire (@BrunoLeMaire) October 4, 2021
It remained that the current price link was ineffective and created a “dead end” for Europe’s transition to renewable energy. He also said that politicians should show voters that fighting climate change will lead to long-term increases in energy costs.
“For years, not just months, we will be facing rising price levels because there is a need for more electricity and there is a link between electricity and gas,” Le Mer said.
“There is also a need to invest more in renewable sources and perhaps in nuclear power plants. That means a lot more money may be needed. “
Tackling the long-term rise in energy prices “will be one of the most important political issues for the coming years,” he said.
Staikoura’s letter for a pan-European response
The need for a coherent European response to the rise in power prices that reflect the economic recovery and the green transition, was mentioned by the Greek Minister of Finance, Christos Staikouras, attending the Eurogroup meeting, today in Luxembourg.
“The recovery of the European economy is strong, much stronger than the initial forecasts,” Staikouras said. However, he stressed that “rising energy prices, especially gas prices, reflect the recovery of the economy and jeopardize the green transition.
This poses a new challenge for all EU members, who cannot cope on their own. We need to take concrete action at European level. “
According to Chr. Consistently, this challenge can be addressed by creating new employees, by creating new tools, by using compensation tools, by taking many targeted measures to address the problem, in order to reduce the burden on households.
Source: OT