Posted on 11/08/2022 10:45:12 AM PST by Oldeconomybuyer
The European Union's executive told its 27 member countries at a seminar on Monday that it was not possible to create a gas price cap that would not affect long-term contracts or supply security, two diplomatic sources told Reuters.
After much wrangling at an all-night summit, EU leaders agreed last month to task the executive European Commission with proposing a temporary EU framework to cap gas prices in electricity generation and create a temporary natural gas transaction price corridor to bring down costs for consumers.
But a compromise between those like France, Spain and Belgium that want a cap, and the German-led camp opposing it meant additional conditions were attached, namely that any cap could not affect long-term contracts, lead to an increase in gas consumption or provoke producers to reroute supplies elsewhere.
"Now, the Commission has said it's impossible to have a cap that meets these criteria," said one of the diplomats, adding national envoys of the 27 EU member countries to the bloc's hub Brussels would discuss that next on Friday.
"There will be a lot of emotions flying high."
The matter has divided EU countries for months as they look to address an acute energy crunch that is driving record-high inflation and threatening recession in the bloc.
(Excerpt) Read more at france24.com ...
They had to have 14 weeks of meetings to figure out the obvious.
Being unworkable is seldom a criticism for the left's agenda.
drill baby drill
China is a major buyer of LNG.
The EU and China could work together to try to control LNG prices.
An EU/PRC Gas Company could set up shop in many natural gas producing countries.
If in the USA, it would pay what your gas utility might pay for natural gas.
LNG shippers can be reasoned with: if you stiff us in 2022 you may have worthless ships in 2025.
Only obvious to us and anyone with an IQ over room temperature, hence the need for 14 weeks by Yiripean "leaders" to understand it. Law of supply and demand like the laws of physics you can't really legislate it away.
Yeah, but they aren’t stupid either. They just had to justify their paychecks and pad their resumes for the next gig while looking like they are doing something “for the people”.
you can only set a price cap on product you OWN, not what you’ll pay...
wut part of that don’t they understand???
Maybe after 14 weeks they are being dragged kicking and screaming into reality, which is that the EU does not have the power to protect itself from Russia and BRICS.
If they were expecting the US to save their bacon, joke’s on them. The joke is named Joe.
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