Tuesday. 05.11.2024
ENERGY

Growing divide between EU ministers over rising energy prices

Germany, supported by Finland, the Netherlands, Denmark and Ireland among others, is facing Spanish and French demand for further action at the EU level in response to rising electricity and gas prices
HANDOUT - 13 October 2021, Belgium, Brussels: European Commissioner for Energy Kadri Simson speaks during a press conference on Energy price crisis following a meeting of the European Commission. Photo: Jennifer Jacquemart/European Commission/dpa - ATTENTION: editorial use only and only if the credit mentioned above is referenced in full
European Commissioner for Energy Kadri Simson speaks during a press conference on Energy price crisis. Photo: Jennifer Jacquemart/EU Commission.

European Union energy ministers are to meet in Luxembourg on Tuesday to discuss rising energy prices amid concerns for vulnerable households and businesses as the continent heads towards winter.

The meeting comes after Germany argued against a reform of the EU energy market in a position paper.

The paper said it shares the European Commission's recent analysis that the energy price spike relates to external global economic factors rather than the structure of the EU energy market.

As such the paper said Germany "cannot support any measure that conflicts with the internal gas and electricity market, for instance, an ad hoc reform of the wholesale electricity market."

The paper was signed by eight other EU member states: Austria, Estonia, Finland, Denmark, Ireland, Luxembourg, Lithuania and the Netherlands.

It follows a push from member states led by Spain and France at last week's EU summit for greater EU-level action in response to rising energy prices in 2021 after a pandemic-induced slump.

"It is an especially important problem for Europe in the middle of the economic recovery, for which extraordinary solutions have to be found," said Spain's state secretary for energy, Sara Aagesen Munoz.

Madrid has pushed for wider reforms in the gas and electricity market to deal with the price rises. Spain, supported by France and Greece, is meeting resistance from other EU member states who believe the price spike is temporary and best handled short-term at a national level.

EU 'toolbox' to limit the hike

The growing divide between members over the energy issue follows a pledge from all EU leaders to "urgently make the best use" of the European Commission's "toolbox" of short-term measures to soften the impact of rising energy prices.

The energy ministers meeting is the first formal discussion of the possible short-term measures.

It is also expected that a number of longer-term measures are to be considered including greater strategic gas storage, according to an EU diplomat.

Growing divide between EU ministers over rising energy prices