By Silvia Marchetti
ROME (MaceNews) – Rome’s government is raising pressure on European Union institutions to place a EU-wide cap on imported gas prices to shield families and business from an extraordinary spike in energy bills that is weakening the bloc’s economy, according to ruling coalition sources. The proposal faces opposition from Germany and Holland.
“There’s a debate at EU-level on this key target, but so far little progress has been made. The European Union needs a common policy on energy, particularly following Russia’s invasion of Ukraine which has made us all very vulnerable, and we seriously hope that a deal will soon be made among peer countries to cap gas import prices,” said a Democrat official.
“But if a compromise will not be reached, Italy can’t afford to wait for a unanimous European decision and we are ready to take action alone and adopt national measures to ease the cost burden,” added the source, adding that a “unilateral move would be intended to push other European countries, so far unwilling, to follow suit.” France implemented a national gas price cap paid by domestic consumers back in October aimed at protecting its businesses and households.
A series of potential measures which could be implemented at national level in Italy are being evaluated by government, said sources, with parties giving their input on how best to control gas prices even in the absence of a EU wide initiative. The Democratic party is the one most actively lobbying in Brussels for a common EU decision, and has forwarded to the European parliament a proposal that calls for a speedy decision.
Sources said “showdown time” for Europe’s new common energy policy was approaching, as the upcoming EU council meeting must bring a concrete result in putting forth a specific gas price cap for all member states to adhere to.
Another official argued that while the previous EU council in March had just “skimmed the surface of the debate,” the next one is expected to be “decisive.”
However, there are still differences between member states that need to be overcome to reach a deal. While Italy, Belgium and France are in favor of placing a cap on gas prices, Germany and Holland – the so-called ‘northern bloc’ – are against it.
Germany is worried that gas-producing countries, including the US that also provides LNG to Europe, if faced with a European ceiling on wholesale gas prices would end up selling their supply to non-European nations.
Energy bills in Germany and Italy have risen by between 200 and 400 percent this year, and both countries heavily rely on gas imports. They import roughly 95 percent of gas each, of which 45 percent comes from Russia.
“If Europe as a team places an upper price limit on gas futures markets, this would prevent spikes in costs fueled by speculation, too,” said the Democratic official.
Having a coordinated policy on gas costs would also be the first step toward defining a “common demand map for energy” based on each country’s national consumption needs, argued sources, so to reach a point in future when it would be the EU as a whole, with greater negotiating power, to buy gas on the global market at a more competitive price.