Yes to the gas and electricity price cap, President von der Leyen said

A cap on the price of gas, common supply and a new reference index.Ursula von der Leyen's proposals to calm the gas market.

• The President of the European Commission spoke before the European Parliament during a plenary session.
• At the center of the speech is the topic of gas.
• The proposals also include a common, but temporary, cap on gas and electricity prices.

“The high prices of gas cause electricity prices to rise.We must limit this inflationary impact everywhere in Europe.For this reason we are ready to discuss a cap on the price of gas.This cap would also be a first step towards a structural reform of the electricity market."With these words the President of the European Commission, Ursula von der Leyen, proposed the introduction of a price cap, i.e. a ceiling on the price of gas and electricity, in front of the European Parliament meeting in plenary session in Strasbourg.

For von der Leyen, a new gas index is needed

"We have our gas consumption decreased by around 10 percent and Russian gas supplies went from 41 percent to 7.5 percent,” added von der Leyen.“It's an important fact, but we can do even more.This is why it is necessary to consider gas prices beyond the electricity market."

The president refers to a new reference index European, capable of reflecting the price of gas more realistically, without depending on the manipulations of the Russia.“The TTF, our main pricing benchmark,” Von der Leyen said, “is no longer representative of our market,” as the market today includes more liquid natural gas (LNG) than before the war in Ukraine. .

The price cap is good, but it must be temporary

The president also specified that the common ceiling on gas prices must be a temporary solution, just as the supply of LNG must be temporary.The aim of the project goes in this direction invest more mutual funds in the plan RePowerEu and “thanks to which each member state will be able to accelerate investments in the decarbonisation of the economy and in the energy efficiency of buildings”, added Von der Leyen.

Another proposal, that of a common energy supply system, operational from next March, i.e. as soon as winter ends:the objective is to create a collaborative European front, avoiding each country doing it for itself, a measure that should curb speculation on the price of gas in the future.Ursula von der Leyen's appeal goes in this direction, calling on member countries to remain "united".

The eighth package of sanctions against Russia approved

In parallel with the plenary session in Parliament where Von der Leyen spoke, on the same morning Coreper, or the committee of representatives of the member countries, a body of the European Council, he approved a new package of sanctions, the eighth against Russia, which also includes a price cap for oil.

Following the requests of the European Commission, the new package also includes the ban on maritime transport of Russian oil to third countries, while the ban on the import of goods will be extended:steel products, wood pulp, paper, machinery and appliances, chemicals, plastics, cigarettes.