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EU Negotiates Emergency Proposals

The EU is currently negotiating emergency proposals to address the energy crisis. Member States must reach an agreement at the September 30 meeting. They are seeking assurances that national measures can be maintained.

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The EU is currently negotiating emergency proposals. These were presented last week. EU energy ministers must reach an agreement at their meeting on September 30.

While the negotiations will be difficult, the EU countries are pressing for certain guarantees. In fact, they want to keep their own windfall profits levies on energy companies. Also, they want to keep some freedoms to implement measures on a national scale.

The EU negotiates an exceptional tax

Under the EU’s latest proposal, states would not be forced to apply the windfall tax on corporate profits. This concerns states that have already put in place “equivalent” measures, such as Italy, for example.

The EU proposes to impose a one-off tax on certain energy companies. It proposes a rate of 33%. However, European nations may, if they wish, introduce a higher rate. The money raised will then be used to help consumers and businesses, who have been severely affected by the price hike.

In addition to the rate, EU member states expect other guarantees. They want the freedom to further limit the revenues of these companies, nationwide.

If the proposal can still change, it indicates:

“Given that the generation mix and cost structure of electricity generation facilities differ significantly between Member States, they should be allowed to maintain or introduce national crisis measures.”

Measures to counteract inequalities within the Union

Indeed, support measures are very uneven across the EU. Logically, the richest countries spend more than the poorest countries. Thus, with the implementation of EU-wide measures, the EU hopes to replace national measures.

According to some diplomats, the EU could reach an agreement as early as September 30. However, this will only happen if states can retain their national measures.

In addition, the EU must present other measures. These will include emergency liquidity for businesses but will also include lower gas prices. While the idea of a price cap is often mentioned, such a measure remains unlikely. The issue divides the Union.

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