Gas price ceiling provoked criticism and tough discussions in the EU

An unexpected turn today took place in the history of the gas price ceiling, which was agreed upon by European countries the day before. This decision simply smashed a number of analysts, saying that it will aggravate the economic situation throughout Europe. The United States is very tense, because now the EU countries are buying a lot of American gas, and the ceiling will affect everyone. Tough discussions unfolded among the European politicians themselves. Reviewer “Izvestia” Vitaly Chashchukhin heard everything.

A fatal decision that will further exacerbate the energy crisis and is certainly unlikely to curb exorbitant gas prices in Europe. Unless for 2 thousand euros they will not be allowed to cross. That’s the economy. Another innovation of the European Union from all sides is subjected only to criticism. And among the EU countries themselves, even after the approval, there is still no agreement, Germany voted clearly with a twisted soul: the Germans were and remain the main opponents.

“If this happens, we will have to put up with it. Of course, this would be an undesirable result,” German Economics Minister Robert Habeck said.

In the end, this happened, and despite the usual unanimous decision, it is obvious that the EU is again split. The Netherlands today left its negative comment under the adopted document.

“Remains potentially unsafe for gas supply security. For this reason, the Netherlands does not support this proposal in its current form”the statement says.

The Balts are one of the few who rejoice, although there would be something to rejoice at. But they seem to have some special calculations of their own.

“In the spring, the filling of gas storage facilities will begin again, and this ceiling will not only limit a possible jump in prices, but will also automatically reduce the appetites of gas traders”– said Minister of Energy of Lithuania Dainius Kreivis.

But on the exchanges themselves they warn that European officials miscalculated: consumers are waiting for continuous worse consequences, suppliers are unlikely to work at a loss. Business publication Bloomberg predicts a shortage in the market.

“A price ceiling without the associated demand constraint risks exacerbating the gas supply gap in Europe, stimulating consumption. LNG importers in Europe and Asia compete for supplies from the same exporters, such as the US and Qatar. And exporters may prefer the Asian direction if prices will be higher there. analysts say.

Not to mention the fact that countries such as Hungary, dependent on Russian supplies, will prefer the protection of national interests, rather than pan-European integrity. Up to direct contracts with Gazprom, bypassing the European Commission.

“The most important thing for us is the security of gas supplies to Hungary. Therefore, if a price limit is adopted and there is a need to revise our long-term contract with Gazprom, we will revise it in order to guarantee the security of our country’s energy supply, if we can agree with suppliers,” said Hungarian Foreign Minister Peter Szijjártó.

The gas price cap was intended to protect European households and companies from price extremes. But the emergency services seem to know better what will really protect people.

A typical situation with lighting this winter is in the center and sleeping areas, even in large cities. In Germany, against the background of the energy crisis, even a nationwide test of warning systems was held: in special mobile applications, Germans are offered in advance to choose which alarm suits them best.

Including in case of blackouts, which can last up to several days. But these calculations were made by the rescue services before the introduction of the energy price ceiling. And now they, too, will probably have to be adjusted. In the direction of increasing possible emergency shutdowns. And it hasn’t really hit the cold yet.