EU leaders cannot agree on a gas price ceiling amid an energy shortage

In an effort to decrease energy prices, the leaders of the 27 member states of the European Union will meet on Thursday for the second time in two weeks. Due to ongoing debates, it is uncertain if the union will cap the price at which it purchases natural gas at this time.

Following their earlier agreement to decrease consumption and apply taxes on windfall gains in the energy industry, the 27 are anticipated to endorse an alternative pricing benchmark for liquefied natural gas and joint gas purchasing.

As a result of Russia's blockade of gas exports in reaction to the invasion of Ukraine, they are as divided as they were many months ago regarding whether and how to control gas prices to battle excessive inflation and avert a recession.

While 15 nations, including France and Poland, support a quota of some kind, they face strong opposition from Germany and the Netherlands, Europe's largest economy and largest gas consumer, and a major European gas trading centre, respectively.

Prior to Thursday's meetings, a senior EU diplomat indicated that "an agreement is highly unlikely... Opinions appear to be significantly different."

In addition, they will discuss emergency spending to mitigate the impact of the severe energy crisis on their separate economies and 450 million citizens.

While some nations have encouraged the group to issue new debt to finance this, more frugal members believe that the hundreds of billions of euros left over from previous initiatives should be spent first.

A second contentious issue is whether to provide immediate assistance through direct subsidies to individuals and businesses or to invest in green energy to make the bloc more resilient in the future.

The summit's leader, the president of the European Council, declared, "Diversity is not a luxury we can afford."

Given the diverse energy mix and interests of EU member states, the summit risks falling short of actual action, with other problems such as whether a gas cap would allow the United Kingdom to purchase energy at a lower price or undermine the reliability of energy supplies.

E3G, a research tank focused on the transition to a low-carbon economy, stated, "Unity among member states is gravely threatened by unilateral national decisions announced in the absence of an EU framework to tie them together."

This fragmentation...could harm the credibility of the EU's reaction.

According to a senior EU diplomat, additional concrete decisions are not expected before November. The EU energy ministers will meet again next week.

KRIEG IN UKRAINE

EU leaders will also consider measures for offering extra support to Ukraine, such as providing energy equipment, aiding in the restoration of the power supply, and providing long-term finance for the nation's future rehabilitation.

As it pertains to bringing those suspected of committing war crimes in Ukraine to justice, some EU members seek to establish a specialized tribunal immediately, but others wish to move more cautiously in order to attract the most international support.

The draft statement of the leaders states, "The European (Union) Council condemns in the strongest possible terms the recent indiscriminate Russian missile and drone attacks on civilians and civilian property and infrastructure in Kyiv and throughout Ukraine."

They will identify Belarus for its role in assisting Russia's conflict, but it is unlikely that they will support more sanctions against Moscow on Thursday.

In response to Iran's use of Iranian-made drones in Russia's invasion of Ukraine, the bloc is working to impose more sanctions against Iran.