EC says 'no' to price cap proposal

Defying calls from the 15 EU countries and voices among European commissioners, Commission President Ursula von der Leyen has decided not to propose a price cap on gas imports, according to Politico.

The news was conveyed to European diplomats at a briefing by the Commission's Energy Secretary General Ditte Juul-Jørgensen on Wednesday. The Commission would alternatively present a "non-paper" with proposals for common markets, she said.

Diplomats commented to Politico that Berlin has warned von der Leyen in particular not to propose such a cap, as there are concerns that once a proposal is on the table, it will be harder to "fight" it in the European Council.

Berlin argues that if a cap is imposed, gas should be politically redistributed among EU countries, rather than being allocated by market forces.

Commission experts, Council President Charles Michel, and many economists argue that the same effect the cap would have could also be achieved through common markets, as EU countries would no longer outbid each other and raise prices.

[With information from Politico]