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Von der Leyen will encourage EU leaders to impose a gas price cap

Ursula von der Leyen, president of the European Commission, will emphasise the necessity of a gas price ceiling and the need for any financial support measures to permit fair competition to EU leaders meeting this week.


Governments in the EU have been debating a gas price cap for weeks without coming to a conclusion. A majority of EU members support some kind of cap, but Germany, Denmark, and the Netherlands are against it because they are worried about supply security.


The EU executive chief announced in an address to the European Parliament in Strasbourg that she would provide a roadmap to the leaders who would meet in Prague starting on Thursday in a letter.


According to Von der Leyen, the European Union had to make sure that its members didn’t compete with one another for gas on international markets and raise costs.


She added that the EU needed to advance its talks with dependable allies and consider cooperative procurement, starting with gas used in the production of power.


Von der Leyen suggested a cap as a short-term fix for gas in general until a new EU price index was established. The primary TTF pricing benchmark, according to her, was determined by pipeline supplies and is no longer indicative of a market with a higher proportion of liquefied natural gas.


‘It is a stopgap measure until a new EU pricing index that guarantees improved market functioning is produced. The Commission has begun working on this ‘She told the legislators.


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