Scholz prevents the gas price cap agreement

Four main points of discussion remained at the meeting of energy ministers: the level of the gas price cap, the number of days the price must be above that cap before the cap is triggered, the issue of which contracts are covered and the introduction of an emergency brake that blocks the mechanism in the event security of supply is compromised or increasing of demands.

The committee initially proposed activating the cap if the gas price exceeded 275 euros per megabyte for ten trading days– It will be a watt-hour. But this was dubbed science fiction by the leaders on file (Belgium, Poland, Greece, Italy and Slovenia), because it wouldn’t have been used even with prices soaring in August. They insisted on a lower threshold.

The Czech Republic, the interim president of the European Union, on Tuesday proposed a ceiling in the region of 200 euros for three trading days. Supporters, who are now called “zealots,” thought it was better. But for Spain, that was still too high.

There is no place for your flame

For most of the day, ministers from both camps met in small groups to seek compromise and bridge differences. The last obstacle was the height of the ceiling and the question of when it would be activated. However, German Minister Robert Habeck’s room for maneuver was limited, due to the position of Chancellor Olaf Scholz, who stubbornly insists that the mechanism should only be used in the event of a rise in prices.

As a result, the file will return to the table of European leaders on Thursday. Then, the energy ministers will make another attempt on Monday. So it is possible to take a vote on the proposal. A qualified majority would suffice, if required, against Germany. But this is political dynamite. (