EU to Fight Inflated Energy Pricing and Food Prices

High energy pricing and food prices are a significant concern for many Europeans, with the EU currently negotiating relief packages for European citizens.

The EU plans to deal with inflated energy and food prices. In connection with the sharp rise in energy prices, the EU Commission considers several emergency measures for its member countries, including price caps and joint gas purchases. This follows from the document that the Brussels authorities are to adopt today.

“None of them is a magic pill, and they all have advantages and disadvantages,” says the draft document.

Commission Chair Ursula von der Leyen had already announced at an EU summit in early March that the Commission would present emergency measures by the end of the month.

The price of gas influences the price of electricity through the pricing mechanism. Due to the situation in Ukraine, gas prices continue to rise, and there are fears that there will be difficulties with energy supplies since the EU depends on Russian imports.

On the one hand, the EU Commission is now proposing to regulate prices for consumers and small businesses. On the other hand, countries can also intervene in wholesale trade by fixing the cost of electricity and financially compensating producers. It is also possible to set an EU-wide maximum price for gas, subsequently leading to lower electricity prices.