Von der Leyen opens the door to applying a cap to the price of gas

Brussels/MadridThe rise in fuel prices due to the Iran-Contra conflict is causing significant concern in Brussels. European Commission President Ursula von der Leyen has opened the door to capping gas prices and, among other emergency measures, reducing taxes on electricity bills, establishing government subsidies, and boosting joint energy purchases as a European bloc. "Businesses and households are already under pressure [from energy prices]. We need to assess how to reduce people's electricity bills," the head of the EU executive stressed on Wednesday during an appearance before the European Parliament. Beyond short-term measures, Von der Leyen took the opportunity to reiterate her support for renewable energy as the surest way for the EU to achieve its long-sought energy independence and cease its dependence on foreign powers. She also championed green energy as the most stable and cheapest, in contrast to the volatility of fossil fuel prices, especially in the current international context. "Since the start of the conflict [in the Middle East], gas prices have risen by 50% and oil prices by 27%," the German leader noted. In this regard, the President of the European Commission asserted that in just "ten days of war," European citizens have already had to pay €3 billion for fossil fuel imports. "This is the price of our dependence," the head of the EU executive added.

It's worth remembering that, although historically a major taboo for the European Union, at the start of the war in Ukraine the European bloc agreed to intervene in the energy market and, among other things, limit electricity bills and reform the energy market. In fact, all the measures that Brussels is studying and recommending to member states are based on the experience of the first years of the conflict in Ukraine and the ensuing energy crisis.

The Spanish government is already preparing a package of measures

The oil and gas price crisis is affecting the entire European Union, including Spain. For this reason, the Spanish government is preparing a package of measures to mitigate its consequences, some of which are short-term—aimed at businesses and families—and others structural, designed to address the volatility of energy prices in this crisis. According to the government, these measures are based on the experience of those implemented during the war in Ukraine, such as fuel subsidies.

In fact, this Wednesday the Spanish Ministries of Economy and Energy met with representatives from the gas, oil, and large industrial sectors. The Ministry of Transport also met with representatives from the road transport sector. Tomorrow, Thursday, the Spanish government's economic teams will meet with unions and employers' associations. The Prime Minister's office has also contacted political parties to seek consensus and expedite the processing of the measures upon their arrival in Congress. The Minister of Labor, Yolanda Díaz, has indicated that some of the proposals, the more targeted ones, could be approved as early as next week.