# EU countries split over joint response to energy price spike Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Countries Fail to Agree on Energy Response in Emergency Meeting Meta Description: EU countries fail to agree on a bloc-wide response to surging energy prices. Some seek regulatory overhaul, others oppose. High gas prices prompt emergency URL: https://financedigest.com/eu-countries-split-over-joint-response-to-energy-price-spikehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-26t085430z1lynxmpeh9p0gprtroptp4eu-energy-1736837518604-compressed.jpg) By Kate Abnett LUXEMBOURG (Reuters) -European Union countries failed to agree on a bloc-wide response to surging energy prices in an emergency meeting of government ministers on Tuesday, with some countries seeking a regulatory overhaul and others firmly opposed. European [gas](https://www.financedigest.com/gazprom-books-no-yamal-europe-gas-transit-capacity-for-dec-30.html) prices have hit record highs this autumn and remain at lofty levels, prompting most EU [countries](https://www.financedigest.com/eu-reaches-deal-to-stop-sending-waste-to-countries-that-cant-process-it.html) to respond with emergency measures like price caps and subsidies to help trim consumer energy bills. Countries are struggling to agree however on a longer-term plan to cushion against fossil-fuel price swings, which Spain, France, the Czech Republic and [Greece say](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says") warrant a bigger shake-up of the way EU energy markets work. There was no agreed position on whether or not intervention measures should be adopted at the EU level and applied in all member states,” Slovenian [infrastructure minister](https://www.financedigest.com/russian-missiles-hit-30-of-ukraines-energy-infrastructure-in-two-days-minister.html "Russian missiles hit 30% of Ukraine’s energy infrastructure in two days – minister") Jernej Vrtovec, whose country holds the EU presidency, said after the meeting. Spain made the case in Tuesday’s meeting for joint gas purchases by EU countries and proposed that individual countries should be able to opt out of the EU’s current system of setting [electricity prices](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price"). Those proposals faced resistance from other countries, who are wary of overhauling EU energy laws in response to what they [say is a short-term price](https://www.financedigest.com/buy-off-plan-to-beat-stalling-house-prices-and-falling-rental-yields-says-jean-liggett.html "“Buy off-plan to beat stalling house prices and falling rental yields” says Jean Liggett ") crunch. Nine states including Germany – Europe’s biggest economy and market for electricity – published a joint statement [ahead of the meeting](https://www.financedigest.com/sterling-steadies-vs-dollar-ahead-of-boe-ecb-meetings.html "Sterling steadies vs dollar ahead of BoE, ECB meetings") that said they would not support EU electricity market reforms. This will not be a remedy to mitigate the current [rising energy prices](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") linked to fossil fuels markets,” the countries said. JOINT GAS BUYING The European Commission is analysing the design of [Europe’s electricity market and gathering evidence on the behaviour of gas suppliers after some countries](https://www.financedigest.com/best-countries-in-europe-to-live-in.html "Best countries in Europe to live in") accused Russia’s Gazprom of manipulating the market to push up prices. The Commission will also assess the pros and cons of joint gas buying [among EU countries](https://www.financedigest.com/china-us-india-among-the-top-36-countries-for-marketplace-expansion-in-2018.html "China, US, India among the top 36 countries for marketplace expansion in 2018"). There are many issues to be considered – who will [pay for the costs](https://www.financedigest.com/factbox-strikes-protests-in-europe-over-cost-of-living-and-pay-2.html "Factbox-Strikes, protests in Europe over cost of living and pay") of procuring and storing the gas, how the gas will be transported from the different regions,” EU energy commissioner Kadri Simson said. Luxembourg [energy minister Claude Turmes said Spain was “over-promising by saying joint gas procurement will solve the crisis”](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros"). With less than a week until the international COP26 climate change summit, the energy price spike has also stoked tensions among EU countries as they prepare to negotiate a raft of new policies to tackle climate change, [including higher tax rates for polluting fuels](https://www.financedigest.com/uniper-sells-uae-marine-fuels-refinery-to-consortium-including-montfort.html "Uniper sells UAE marine fuels refinery to consortium including Montfort"). Hungarian Prime Minister Viktor Orban last [week dismissed the plans](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News") as a “utopian fantasy”, a stance at odds with other states who say high fossil fuel prices should trigger a faster switch to low-emission, locally produced renewable energy. (Reporting by Kate Abnett, Marine Strauss, Jan Strupczewski and Isla Binnie; Editing by Bernadette Baum, David Holmes and Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---