Mon, January 30, 2023

Leaders Meet Again Over the Looming Energy Crisis in Europe

energy

On Thursday, the EU’s 27 member states will gather for the second time in two weeks to discuss efforts to reduce energy costs. However, the EU’s ability to cap gas prices seems questionable due to ongoing tensions within the EU.

After deciding to fill gas storage and seize money from energy companies to use for aiding consumers with exorbitant bills, the 27 should support portions of a package of EU energy proposals made this week. However, they are unable to agree on whether and how to control gas prices to fight hyperinflation and avoid recession after Russia cut off gas supplies due to its invasion of Ukraine. Discussions on this topic could go on for hours.

Is The Energy Crisis a Threat to the EU’s Stability?

Dutch Prime Minister Mark Rutte stated that as he came for a pre-summit discussion, he feared we might be in for a long night.

Fifteen nations, including France and Poland, are pressing for some cap. However, Germany, and the Netherlands, the largest of Europe’s economy and top gas consumers, respectively, are against it, warning that restriction of gas prices may jeopardize supply stability. According to a copy of the summit’s conclusions, Brussels will have to suggest a restriction on the price of gas used to produce power, a concept favored by France and already used by Spain and Portugal. But according to the letter, Germany demanded the deletion of any references to price ceilings from the text.

The acute energy shortage will affect the 450 million people living in those countries. Thus the leaders will also talk about emergency investment to counteract such consequences. Some countries ask the EU to issue new joint debt to pay for it, while more frugal member states say hundreds of billions of euros left over from previous plans should be used first.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its