Greece threatens to block gas price correction mechanism

Greece threatens to block gas price correction mechanism

Greece is prepared to block a European Commission proposal for a gas price “correction mechanism,” set to be presented to the 27 EU states Friday, instead insisting on a firm cap to rein in an unprecedented energy crisis, Kathimerini has learned.

The EU’s executive told its 27 member countries at a seminar Monday that it was not possible to impose a gas price cap that would not impact on long-term contracts or supply security. Germany, the bloc’s largest economy, and the Netherlands also oppose the idea.

Reacting to Monday’s development, European Council President Charles Michel reportedly sent a letter to European Commission President Ursula von der Leyen, asking her to put legislation on the table for an EU price cap on natural gas “as soon as possible.”

According to diplomatic sources, the 15 member countries calling for various versions of a price cap will ask the Commission to present a legal proposal during the Friday meeting of the 27 national ambassadors to the EU in Brussels. They say that the Commission has already put together a draft document but is not willing to take formal action.

Failure to move in the direction of a price cap will prompt Greece – and other states – to block plans for a gas price “correction mechanism,” the sources said. [Kathimerini, Reuters]

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