France, Spain urge pan-European response to energy price surge

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LUXEMBOURG, Oct 4 (Businesshala) – France and Spain on Monday launched a coordinated European response to rising global energy prices and Europe’s ambitious plan to curb CO2 emissions by 2050 to protect the competitiveness of the poorest citizens and companies. called upon to protect.

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Gas prices in the European Union hit a record high on Friday, as the bloc’s main gas supplier Russia kept a tight lid on deliveries, signaling a further push into the winter heating season on European consumers.

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“What we see is an unprecedented rise in energy prices,” Spanish Finance Minister Nadia Calvino told reporters as she entered the euro area finance ministers’ talks in Luxembourg.

“This is not an issue we can tackle at the national level, we need a European coordinated response,” she said, adding that her country had prepared a paper on possible options.

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Calvino said one of these was the creation of a strategic European gas reserve, which would help the 27-nation bloc of 450 million consumers negotiate lower prices if similar purchases are made individually.

“We’ve learned through negotiating the vaccine supply that we are stronger when we speak with one voice,” she said.

He added that Spain also wanted to see action to stop speculation on the market for CO2 emissions permits, which pushed up prices.

High energy prices an issue for years, not months

French Finance Minister Bruno Le Maire struck a similar note, saying he would propose better regulation of European gas stocks and moving the price of electricity from gas prices in favor of tying it to the average cost of production in each EU country. would propose to add.

“The European energy market has a major advantage – it secures the supply of energy everywhere in Europe. But it also has a major downside – the alignment of electricity prices with gas prices,” Le Maire entered into negotiations. Said to do

He insisted that the link was inefficient and created a “dead end” for Europe’s transition towards renewable energy sources. He also said politicians should convince voters that the fight against climate change will result in a long-term increase in energy costs.

“For years, not months, we will face increased levels of prices, because there is a need for more electricity and there is a link between electricity and gas,” Le Maire said.

“There is also a need to invest more in renewable sources and perhaps in nuclear plants. This means that a lot more money may be needed.”

Dealing with the long-term rise in energy prices “will be one of the major political issues for years to come”, he said. (Reporting by Jan Strupzewski; Additional reporting by Marine Strauss; Editing by Jan Harvey)

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