Markets
EU Unveils Interim Gas Market Steps With No Quick Price Cap
- Europe pitches joint gas purchases, market volatility limits
- As last resort, EU may impose gas price cap on biggest hub
Ursula von der Leyen
Photographer: Benjamin Girette/BloombergThis article is for subscribers only.
The European Union announced a new emergency package to tackle the energy crunch, betting on steps to bolster solidarity among member states. But the bloc is refraining from immediate gas-price caps amid political divisions and concerns over security of supply.
The European Commission proposed measures on Tuesday to avoid extreme price spikes in energy derivatives and to use the EU’s joint purchasing power as a leverage in negotiations with global gas suppliers. The bloc’s executive arm, also wants to launch a new liquefied natural gas index to better reflect the region’s energy reality after a cut in supplies of pipeline gas from Russia.