The European Commission is considering temporarily capping gas prices in the European Union (EU), following a sharp increase in prices, reports Azernews.
This week, natural gas prices in Europe hit their highest levels in over two years, driven by colder temperatures and a lack of wind, which reduced renewable energy production. Currently, gas prices in Europe are three to four times higher than in the United States, creating major challenges for European businesses.
The Commission is looking into this price restriction as part of a policy document set for release in March. The document is expected to include measures aimed at supporting heavy industry in the EU. Sources say European businesses are facing multiple difficulties, including trade measures implemented during former U.S. President Donald Trump’s administration. Talks about price caps are still in early stages but have already faced resistance from industry groups, who warn that such restrictions could harm confidence in the European market.
Some EU member states, including Germany and the Netherlands, are likely to oppose price caps, a European diplomat noted. These countries opposed similar measures in the past, reflecting ongoing divisions within the EU over how to balance business support and energy market stability.
This discussion over gas prices is part of a wider energy crisis in Europe, worsened by the war in Ukraine, which has disrupted global energy supplies. In the long term, the EU is exploring alternative energy solutions to reduce its reliance on Russian energy, including greater investments in renewable energy and nuclear power.
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