fears in berlin
EU energy ministers are pushing to unblock a deal on a tense price cap discussion this Monday. Responding to a mandate issued the previous Thursday by EU heads of state and government, they aim to finalize the response to the ongoing energy crisis. A final compromise proposal has been tabled by the Czech presidency, which is currently leading the EU, proposing the activation of a corrective mechanism when the price of gas in the TTF market exceeds market value. The suggested threshold sits at 188 euros per megawatt hour, notably below the 275 euros proposed by the European Commission a month earlier. The Czech minister and deputy chair of the Council, Jozef Sikela, asserted that the proposal would satisfy both sides: those who want a price cap and those wary of it.
Several countries including Greece, Poland and Belgium have pressed for weeks to lower the cap to well under 200 euros. The Greek energy minister Konstantinos Skrekas suggested during the meeting that a starting price of 275 euros is not truly a ceiling and that a figure between 150 and 190-200 could work. He indicated that 188 euros would send a positive signal to the markets, reflecting a pragmatic balance. For the mechanism to activate, the price gap for liquefied natural gas in international markets would need to exceed 35 euros for three consecutive days.
As the talks continue, officials emphasize that if the parameters are reduced, stronger protections must accompany the measure. Energy commissioner Kadri Simson noted that safeguards have indeed been strengthened. She acknowledged concerns about potential risks to financial market stability, yet highlighted that the proposed temporary emergency brake is designed to be reversible if it fails to achieve its aims. She added that the mechanism includes a set of protections to prevent adverse effects on the European market and to mitigate possible gas supply problems within the union or its territories.
Berlin has been vocal about potential risks from lower caps, warning that smaller targets could drive gas away from the European market toward third countries, with possible supply challenges for some members. German official Robert Habeck remarked that while no one opposes lower prices for Germany, caution is essential to avoid unintended consequences. Despite Berlin’s caution, the delegations feel the mounting pressure to reach a credible agreement within the day.
A number of participants still express guarded optimism. One delegate noted that a compromise seems possible, though predicting the exact outcome remains difficult given the diverse objectives across member states. Estonia’s Riina Sikkut, arriving alongside other aligned nations, has supported ceilings above 200 euros. Berlin also underscored the importance of achieving unity on any final decision and warned against a deal that would strand members who oppose it. The Czech EU presidency is determined to clear away the blocking minority and secure a pairwise majority to close the current stalemate.
Beyond the central price cap, two other items remain tied to the outcome of the corrective mechanism. These include measures to advance a common gas purchases platform and to accelerate permits for renewable energy projects. There is no clear consensus yet on raising the 2030 renewable energy target within the Repower EU framework. Nine countries, among them Spain, Germany, Portugal and Greece, have argued for lifting the target to 45 percent, arguing that higher ambition would support energy security and market resilience.