Four member states of the European Union are on the verge of derailing a package of measures that was designed to address the current energy crisis. These measures include measures to expedite the permitting process for renewable energy projects and joint purchases of natural gas. Because a natural gas price cap plan is not included in the current list of detailed proposals, the four countries of Belgium, Greece, Italy, and Poland have threatened to block the entire package of energy-related measures designed to alleviate the energy crisis in 27 EU countries. These measures are intended to help alleviate the energy crisis in EU countries. It is just the latest argument in a long line of disagreements regarding the contentious natural gas price capping mechanism, and the interminable delays could prevent energy ministers from approving a price cap at their meeting on November 24, as had been anticipated.
According to Reuters, the four nations’ demand for a comprehensive proposal on a nat gas price cap from the European Commission prior to that meeting date. In the event that this does not occur, the four individuals will not come to an agreement on the comprehensive package of energy-related measures that will be submitted for approval on that date. These measures include the EU countries making joint gas purchases and accelerating the process of granting permits for renewable energy projects. In response, the European Commission stated that they would make every effort to present concrete information regarding the gas price cap in time for the meeting. In spite of the requests made by EU leaders, the European Commission informed the member states on Monday that it was impossible to implement a price ceiling for gas without disrupting the long-term agreements that were already in place. Instead, the EC proposed something called a “market correction mechanism.” Belgium, Greece, Italy, and Poland are given credit for being the originators of the idea of setting a price ceiling for natural gas, despite the fact that industry experts and analysts have expressed doubts regarding the viability of such a price ceiling. Although more than half of the countries that make up the EU supported the idea of putting a cap on gas prices, the European Commission was never on board with the price cap.