The cost of electricity in Europe has jeopardized the restoration of the eurozone economy. This was stated by the Commissioner for Energy in the European Commission of Kadri Simson, reports Reuters.
The politician called the energy crisis “price shock” and stated that the restoration of Europe would be under the blow, if not adopting immediate action. Racing gas prices affect the decisions on investment in business, and also beat on ordinary consumers. Cadri Simson promised capital reform of the gas market, which should help avoid repetition of the energy crisis in the future. The reform plan will be presented at the end of 2021.
According to the Commissioner, there are enough gas in the European Union in the repository countries to hold out all winter. “The fullness of underground gas warehouses in Europe is more than 75 percent. This level is lower than the average for ten years, but is sufficient to cover the needs of the winter season,” said Cadri Simson on the speech before the European Parliament.
Commissioner noted that the long-term response to the increase in gas prices was an increase in electricity production from renewable sources, but in the short term, the EU government can provide targeted support using direct payments to the most affected consumers and reduce energy taxes. The Commissioner also called for antitrust authorities to stop speculation in the energy markets.
Cardi Simson noted that the EU countries need to coordinate efforts to overcome the energy crisis. “We also need to remember the importance of geopolitics of energy and develop a more strategic approach to external energy policy,” she reminded.
Gas prices in Europe reached historical maxima and have already approached the mark of two thousand dollars per thousand cubic meters. The European Industry suffered from energy prices: enterprises began to close due to the inability to pay bills. The group of members of the European Parliament believes that the Russian supplier of Gazprom artificially infects gas prices, while some policies associate an increase in energy costs with unfavorable market conditions.