After almost twelve hours of overnight negotiations, the EU finally found a common understanding on the energy front. “The EU Council has reached an energy agreement. Unity and solidarity prevail“.
This was announced by the president of the European Council, Charles Michel, explaining that “it was agreed to work on measures to contain energy prices for households and businesses. ”
The former Belgian prime minister also underlined the strong and unanimous commitment of EU countries to act together to achieve three goals: lower gas prices, guarantee the security of supply and continue to work to reduce demand.
In essence, the agreement puts “the urgency of concrete decisions” to be taken on gas with a series of measures that include the common purchasing platform and a new complementary benchmark to the TTF.
The agreement’s effect is also felt in the gas price: in Amsterdam, the starting price drops 2.35% to 124 euros per megawatt hour. Yesterday’sYesterday’s closing was at 127 euros.
The track to be followed remains the one proposed by the Commission on 18 October. The measures, in practice, do not change: they range from the aggregate platform for gas, 15% of Europe’s total storage volume must be voluntary yet required, with renewable energy sources encouraged up to a gas price cap in the production of electricity.
Possibility of a New Sure despite the perplexities of Germany and Holland
While the application of the Iberian model, advocated by France and the president of the EU Commission Ursula von der Leyen, but not by Germany and the Netherlands, could open the way for a new Sure on energy.
The conclusions ask the Commission to carry out “an analysis of the costs and benefits of the measure,” It would place an unreasonable burden on the public accounts of various member countries to make up for the gap between the managed price and the market price.
Mario Draghi’s satisfaction with the agreement: “It went well.”
Although the agreement on the energy dossier leaves the 27 EU countries half satisfied, Mario Draghi expresses his satisfaction as he leaves the Europe Building. He says that “It went well. ”
According to the Italian premier, formally for a few more hours, one of the most positive notes of the EU Council is the opening, albeit very cautious, on the possibility of contracting a new common debt.
To “preserve Europe’s global competitiveness, maintain the level playing field, and safeguard the integrity of the single market,” the steps include “the deployment of applicable tools at national and EU level.”
According to Palazzo Chigi, this sentence demonstrates that the Italian suggestions have been accepted.