European Commission President Ursula von der Leyen has decided not to propose a price cap on imported natural gas, according to Politico.
Ignoring the calls from 15 EU countries (including Greece and France), and even voices among the European Commissioners, von der Leyen says «no» to imposing a cap.
Commission experts, European Council President Charles Michel, and many economists argue that the same result as that of a cap could also be achieved through common markets.
«The Commission's Director-General for Energy, Ditte Juul-Jørgensen, told the outraged European diplomats that instead of a cap, the Commission would present a ‘non-paper’ with proposals for joint markets. Following Juul-Jørgensen’s announcement, a diplomat took the floor to applause and declared that the Commission’s promised proposal was in fact a »non-non-paper.«» “It’s a non-paper for the Commission, but it’s a ‘non-non-paper’ for the member states because it doesn’t exist yet, and it’s a ‘non-non-paper’ because it doesn’t actually introduce any new solutions,” notes Politico, providing background on the reactions.
Berlin, however, argues that if the cap is imposed, natural gas should be redistributed politically among EU countries, rather than being allocated by market forces.
Lower natural gas prices could also lead to increased consumption—a toxic combination that could result in shortages, officials warn.
