PRAGUE – European Union (EU) leaders meeting in Prague today will look to overcome divisions on how to tackle soaring energy prices as they grapple with the fallout from Russia’s war on Ukraine.
President Volodymyr Zelenskyy will dial in from Kyiv as the bloc looks to maintain its economic and military support for Ukraine and hold a tough line against Moscow.
The EU leaders will also discuss how to better protect their critical infrastructure in the wake of leaks from the Russia-Europe Nord Stream gas pipelines that have been blamed on “sabotage”.
But it is the sharp disagreements over how to tackle the energy crisis that will be the major focus of attention as the 27 nations wrangle over the best plan to try to bring down prices.
Europe is facing an energy crunch as the price of electricity generation skyrockets because of a massive surge in gas prices caused by Russia turning off the taps.
Governments across the bloc are scrambling to lower the costs for their consumers – but they rely on different sources for their energy and are split over the solutions.
EU executive head Ursula von der Leyen is proposing a “roadmap” of measures to help ease the burden – including a potential price cap on gas coming into the bloc.
“We are at a critical juncture once more. The energy crisis is severe and has entered a new stage,” von der Leyen wrote to the leaders.
“Only a common European response can reduce energy costs for families and businesses and provide energy security for this and coming winters.”
‘Common position’
The move towards a price cap signals a potential shift in direction after powerhouse Germany expressed worries the move could divert supplies away from Europe.
Berlin has come under fire from other EU members for dragging its feet on the issue and after announcing a €200 billion(RM911.81 billion) fund to finance its own national price cap.
That came as 15 EU countries have pushed for the EU to impose a price ceiling on how much it would pay for gas piped or shipped in, as the northern hemisphere winter sets in.
“We have to make sure that we decide on a way forward which will work,” said Dutch Prime Minister Mark Rutte.
“I think on all these issues over the coming weeks we could come to common positions.”
The difficulty of trying to curb prices from energy suppliers was highlighted Wednesday by the Opec+ cartel’s agreement to cut oil production in defiance of Western efforts to starve Moscow of revenue.
That decision could hamper a G7 push for a cap on the price of Russian oil that was backed by the EU in its latest package of sanctions agreed this week.
Despite some discontent from Hungary, the bloc has managed to remain largely united in its opposition to the Kremlin as President Vladimir Putin has escalated the conflict by claiming four occupied regions.
It is also looking to maintain its backing for Kyiv as Zelensky’s troops push Russian forces back on several fronts over seven months into the war.
Ukraine is urging the EU to speed up much needed economic support after Brussels on Monday signed a memorandum of understanding to provide €5 billion.
On the military front, the bloc is looking to launch a training mission for Ukrainian forces later this month.
It is also eyeing a possible fresh tranche of funding for arms for Ukraine that would take its overall spending on weaponry to €3 billion. – AFP, October 7, 2022
