Soaring energy prices: here’s what Europe can do to help people

This Wednesday, the Consultation Committee “returned” the ball to the European level. Especially with regard to a possible price freeze. But what can Europe do exactly? And in how long?

Europe can try to bring down the price of gas by imposing a price cap. This means that European countries would agree not to buy gas above a certain amount. Prime Minister Alexander De Croo recalled this Wednesday during his press conference: the price of gas is trading today at half the price in Asia and ten times cheaper in the United States.

The other solution, if there is no consensus on this cap, is to see several European countries join forces to make group purchases and put pressure on producers.

For electricity, its price is linked to the price of gas, in particular because, to set it, it is based on the production costs of the gas power stations. The idea would therefore be to no longer link the price of electricity to the price of gas.

What deadlines?

We should see a little more clearly on September 9, when a meeting of European energy ministers will take place. We will then know which countries support one or the other proposal. And if there is agreement, then we will still have to wait for a European summit of heads of state and government.

Europe’s response to energy problems is therefore unlikely to take shape for several weeks, or even before the end of the year.

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