Meeting in Brussels from Thursday for a European Council devoted mainly to the war in Ukraine, the 27 Heads of State or Government of the Member States of the European Union will discuss, on Friday 25 March, the measures to be implemented to combat the rise in energy prices and ensure the Union’s energy security.
This discussion could prove difficult, according to several senior European diplomats, as there are so many proposals on the table: joint gas purchases, price capping, reform of the electricity market, or an embargo on Russian fossil fuel imports.
Of these options, joint gas procurement seems to be the one most likely to be supported by all Member States.
Leaders will discuss the European Commission’s proposal to create an EU Task Force, modelled on that put in place for the Covid-19 vaccine procurement, to strengthen the EU’s negotiating power with suppliers of liquefied natural gas (LNG) and gas (see EUROPE 12917/7).
The idea is also to “avoid the uncoordinated actions that we are beginning to see from some member countries who are turning to gas suppliers for bilateral deals”, said a French source at the Élysée, citing the lack of a collective approach at the start of the pandemic as an example.
This is no doubt a reference to the recent visit to Qatar and the United Arab Emirates by the German Minister for Economic Affairs and Climate Protection, Robert Habeck.
During the European Council, the EU-27 will have to decide whether all member states will join the task force or whether participation in it will be on a voluntary basis, another Elysée source said. According to her, many Member States would be interested in the Commission’s proposal.
A draft of the European Council conclusions states that Member States and the Commission will “urgently collaborate on joint procurement of gas, LNG and hydrogen” for the coming winter.
The document, dated 21 March, also stresses that EU countries will coordinate measures to ensure adequate levels of gas storage (the Commission has just presented a proposal for a regulation on this subject - see EUROPE 12917/7), establish the necessary solidarity mechanisms and complete interconnections.
However, the text does not mention the possibility of capping gas prices. This idea, supported mainly by the southern countries (see EUROPE 12914/3), should nevertheless be part of the discussions. It is also mentioned in the latest Commission Communication on energy, but as a solution to be considered “as a last resort”.
While the option of a full or partial embargo on Russian fossil fuel imports could also be discussed by some leaders, Russian President Vladimir Putin announced on Wednesday that Moscow would require “unfriendly countries” to pay for their gas supplies in rubles. Germany immediately denounced a breach of contract.
See the draft conclusions of the European Council: https://aeur.eu/f/vu (Original version in French by Damien Genicot with editors)