Citing a draft proposal, the Financial Times reports that EU countries are seeking exemptions from the European Commission plans to cut gas use by 15 percent between August 2022 and March 2023.
On July 20, the European Commission urged EU members to voluntarily cut their gas consumption by 15 percent from August 1, 2022 to March 31, 2023, amid fears that Russia could halt supplies. The target equates to about 45 billion cubic meters. Brussels warned that a total shutdown of Russian gas is a real possibility and urged preparation while preserving EU unity.
Several European nations did not back the initiative. Spain, Greece and Portugal voiced official opposition. In practice, however, Reuters reported that at least 12 EU members expressed concerns, including Italy, Poland and Hungary.
According to the Financial Times, European states that were not named by the paper argued that mandatory targets should reflect each country’s dependence on Russian gas and the amount of fuel kept in storage. The proposal would take into account these factors when setting any binding measures.
EU member states also suggested exemptions for countries capable of supplying gas to other EU members. In addition, several sectors deemed critical to the EU single market should be exempted from the strict requirements, as outlined by the document authors.
The draft states that member states should be free to choose appropriate measures to reduce demand. The Financial Times notes that at least five countries would need to make a specific request for the proposed indicators to become mandatory, while a majority of member states would have to approve the change.
A spokesperson for the French Ministry of Foreign Affairs said on July 26 that EU energy ministers would consider reducing reliance on Russian gas, oil and coal.
Impact of sanctions on the energy market
Former Virginia state senator and retired colonel Richard Black argued that sanctions policy against Russia has created a stalemate and driven energy prices higher. He urged shifting focus away from blaming the Russian leadership and said that the blame lies in Western policy, which he described as irrational and destructive because it has caused significant economic turmoil.
Black connected these opinions to a broader view of the Nord Stream situation, suggesting that the EU is reluctant to admit that ongoing restrictions on collaboration with Canada have affected gas supplies. He asserted that Western strategies have amplified market volatility and uncertainty.
US recession
In an interview with a major network, the U.S. Treasury Secretary said that economic growth in the United States is slowing but that there are no signs of an outright recession. The official cautioned that a transitional period of slower growth is possible and argued that the goal is to protect the labor market and restrain inflation. The slowdown is seen as a natural adjustment after a period of strong expansion.
Russian officials responded with satire, joking about historical figures, while commenting on the remarks from Washington. The exchange underscored ongoing geopolitical tensions in the global economic landscape.
Earlier data indicated that the United States experienced notable job gains in the aftermath of the pandemic, underscoring resilience in employment. At the same time, consumer spending and hiring helped support the economy. However, inflation remained elevated, with the latest figures showing a continued rise in consumer prices year over year.