EU leaders discuss gas prices and democracy in Poland / Article

Although there are concerns in many places about both issues, there is a lack of consensus on how to deal with these situations.

The sharp rise in electricity and gas prices is causing deep headaches for both consumers and governments in many European countries. However, the view on what would be the best solution is fundamentally different.

Vulnerable consumers must be helped

Germany, the Netherlands and Austria are among the countries that believe that hasty reforms and changes should not be rushed. Instead, this winter should help vulnerable consumers.

The Prime Minister of Latvia Krišjānis Kariņš also takes a similar view.

Latvia believes that it would not be in our interest to intervene in the electricity market, as this could kill future investments in new generation capacity, especially in green energy.

“If Europe intervenes in price regulation, it will kill any willingness to invest. We see that the United States tried this with price regulation in the 1970s. It actually completely failed. There were also very negative phenomena for consumers. It seems good for a while. In the long run, this is not a solution, “says Kariņš.

The right solution is to let the market work, so that investment takes place to have more production capacity, while protecting households from very large potential price jumps by subsidizing individual households. ”

Kariņš added that his government is aware that rising prices are a serious problem for many Latvians. As a result, the range of households for which support is available is already expanding. If necessary, even more money will be allocated for assistance.

Spain encourages the purchase of gas together

Spain, on the other hand, was most active in calling for urgent change. Spanish Prime Minister Pedro Sanchez wants European countries to buy gas together because it can get a better price. We also need to talk about building common gas stocks.

Some want Europe to buy gas together. Germany does not support this, but Latvia finds the storage of European gas reserves interesting.

“Joint gas procurement or some strategic reserves at European level – we might be interested in that. We have underground storage facilities – it could also be used in part to stabilize total gas flows in Europe,” says Kariņš.

Belgian Prime Minister Alexander De Croe said before the leaders’ meeting that he would be ready to support Spain, but first we need to understand what can help reduce gas prices. In the medium term, the Belgian Prime Minister believes that further investment in wind and solar energy is needed.

“There is only one energy sector where, due to technological progress, prices are falling every year – renewable energy. In my opinion, nuclear energy, gas and renewable resources are not mutually exclusive, ”says De Kro.

“However, the aim must be to achieve the highest possible share of renewable energy. In the case of Belgium, our nuclear capacity is, in fact, preventing us from developing more renewable energy sources. “

Negotiations on electricity prices will not end so easily, as some countries blame the European “green course”. However, analysts and the European Commission say that the main driver of electricity prices in Europe is rapidly rising gas prices, while the emissions trading market is responsible for only 1/5 of the increase in electricity prices.

The Hungarians have not been convinced of this, and the Prime Minister of this country Viktor Orban today called the European “green course” a “utopian fantasy” that raises energy costs in Europe.

“So common sense on one side and fantasy on the other – and utopian fantasy kill us. It’s also a problem with energy prices,” Orbans said.

The Hungarian leader supports Poland

A discussion on the rule of law and democracy in Poland is also expected at the negotiating table of the leaders of the 27 countries. The country’s prime minister, Matthew Moravecki, had already passionately defended his position in the European Parliament on Tuesday, claiming that the European Union’s institutions were trying to expand their powers illegally.

It is not surprising that the Polish Government is also supported by the Hungarian Prime Minister, Mr Orban.

“Poland is a good country, one of the best in Europe. They are doing very well. It is a success story: the best economy, democracy is thriving, elections are fair. What about the problem with Poland? It’s a good country. “

The Benelux countries, on the other hand, want the European Commission to use any instrument at its disposal to take a sharp stand against Warsaw, as it believes that its actions are undermining the foundations of the European Union.

In his turn, Kariņš agrees with those who want to resolve the situation peacefully and through dialogue, as well as reminds that Poland is an important partner for Latvia.

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