The leaders of the European Union, meeting at a summit in Prague on Friday, tried to overcome their divisions to outline a common response to the surge in energy prices caused by the war in Ukraine.
In a show of unity, French President Emmanuel Macron and German Chancellor Olaf Scholz arrived side by side at the castle in the Czech capital, flanked by Dutch Prime Minister Mark Rutte.
But the image will not be enough to mask the tensions that have recently emerged between Paris and Berlin on energy issues.
The three leaders were to discuss new measures proposed by the President of the European Commission, Ursula von der Leyen, with their EU counterparts in the morning.
The Old Continent’s economy is totally dependent on its hydrocarbon imports and suffers like no other from the supply cuts imposed by Russia.
But it is struggling to find a common response, given the divergent interests of countries such as France that rely on nuclear power, Germany that relies on coal, and those that are historically linked to Russian hydrocarbons in Central Europe.
“We need better coordination to help our citizens and businesses,” pleaded Latvian Prime Minister Krisjanis Karins, warning against any temptation to go it alone, after the outcry last week over Berlin’s 200 billion euro plan to protect its economy.
“Just because a member country is able to borrow more, it should not be able to subsidize its businesses more and make them more competitive than their neighbors,” he said.
– “Stand together!” –
“Stand together, in difficult times it is necessary to agree on common measures and not on those that best suit a country”, also launched his Polish counterpart, Mateusz Morawiecki, to the attention of the Germans.
Mrs. von der Leyen confirmed that an “energy price cap” would be discussed. “The question is how and on what purchases,” she said.
Fifteen member states, including France, are calling for a price limit on all EU gas imports, which Berlin has so far rejected.
It sounds good on paper, but it could cause problems,” warned Luxembourg Prime Minister Xavier Bettel. Maybe we’ll have a price cap but we won’t have any more energy, because we are not the only customers in the world.
Another subject of confrontation: the reform of the European electricity market, which penalizes consumers with high tariffs, indexed to those of gas.
Ms. von der Leyen proposed on Wednesday to discuss a temporary cap on wholesale gas prices used to produce electricity, before a structural reform of the electricity market demanded by Paris.
No major announcements are expected on Friday, as this informal summit is intended to prepare decisions expected at a forthcoming meeting in Brussels on October 20-21.
– Do not waste time –
The Europeans also have to deal with the reluctance of their suppliers.
Twenty-three oil-producing countries, led by Saudi Arabia, announced on Wednesday a drastic reduction in their production to support prices, a boon for Moscow and a slap in the face to the West.
The case highlights the difficulty of buyers to impose their prices on suppliers, even if they are “friends”.
Mrs. von der Leyen also proposes to develop joint gas purchases, but also to go beyond the 20 billion euros of European subsidies already adopted for infrastructures aimed at freeing themselves from Moscow, while certain countries are calling for new mutualized financing from
on a European scale.
“There is no time to lose”, warned the President of the European Council, Charles Michel. European employers warned at the end of September of an “imminent” risk to the survival of thousands of companies.
So far, the EU-27 have agreed to take some of the “super-profits” of energy producers to help consumers, as well as to jointly reduce their electricity and gas consumption.
European leaders are also expected to reaffirm on Friday continued support for Ukraine.
French President Emmanuel Macron said Thursday night that he may announce new arms shipments, particularly Caesar guns.
