BRUSSELS-ANSWER. White smoke on energy rose from the European Council summit in the early hours of Friday as, after hours of talks, European leaders managed to overcome their differences and give a political mandate to finalize the details of agreed measures at the level of energy ministers. .

According to government sources, there was a mutual understanding that an intervention such as capping the price of natural gas was necessary for Europe and its ability to cope with the energy crisis and protect households and businesses.

In the conclusions of the energy summit, the leaders call on the Council of Ministers and the Commission to present without delay concrete decisions on additional measures, as well as on the proposals of the Commission, after assessing their impact, in particular on existing contracts, and taking into account different energy mixes and national conditions.

Agreement clauses

In particular, the leaders agreed at the political level:

– general purchases of natural gas on a voluntary basis, with the exception of the mandatory accumulation of demand for 15% of the needs of each Member State to fill natural gas storages. In this context, negotiations will continue with reliable partners from the EU for the full and mutually beneficial use of the common European energy platform, which will be equally accessible to the Western Balkans, Ukraine, Moldova and Georgia.

– a new additional European standard by early 2023.

– a temporary dynamic price corridor in natural gas transactions to immediately limit episodes of excessive price increases, taking into account the guarantees established by the European Commission in its proposal of 18 October.

– European temporary framework for limiting the use of natural gas in electricity generation (Iberian model), which should be preceded by a cost-benefit analysis. At the same time, measures must be taken to prevent the growth of natural gas consumption, to deal with the consequences of financing and distribution, as well as the consequences outside of Europe.

– Improving the functioning of energy markets to improve transparency, mitigate liquidity stress, and remove factors that increase natural gas price volatility while maintaining financial stability.

– accelerating the development of renewable energy sources and associated networks.

– measures of energy solidarity in case of supply disruptions at the national, regional or union level, in the absence of bilateral agreements on solidarity and strengthening efforts to save energy.

– mobilization of all available tools to strengthen the stability of European economies, maintain competitiveness and integrity of the single market.

– Accelerating work on the structural reform of the electricity market and moving further towards a full energy union, as well as strengthening the infrastructure of storage and interconnection.

On Friday morning, the second day of the session, the discussion will focus on international relations. A meeting of the Council of Energy Ministers is scheduled for Tuesday, October 25, in Luxembourg. European officials said last week that a final decision would likely come at a possible emergency meeting of energy ministers in early November.

Leader Satisfaction

European Council President Charles Michel said after the meeting that the consultations had developed a number of measures that would require further processes.

European Commission President Ursula von der Leyen said the EU now has a “very good and solid roadmap”.

“Our leaders gave us the strategic direction we wanted,” he said.

As he left, French President Emmanuel Macron said the leaders had achieved their dual goal of “preserving European unity and lowering gas prices.”

He added that the leaders had given the European Commission a “clear mandate” to start working on capping gas prices and a European solidarity mechanism to help citizens. He predicted that the proposals would be implemented in late October or early November.

Regarding ongoing tensions between France and Germany, Macron said an earlier meeting with German Chancellor Olaf Scholz helped Berlin support the energy package at the summit.

“We don’t always have the same positions, and that’s okay,” he said. “When a lot of things change in Europe – energy, defense, economy – our work is hard,” he stressed.

Belgian Prime Minister Alexandre de Croo was no less optimistic. “Today was a good exercise in listening to each other and trusting each other. We are all in the same position. The human element, trust is more important than the conclusions of the Council,” he stressed.

German Chancellor Olaf Scholz, for his part, was cautious, saying leaders had “set clear guidelines” on contentious energy issues such as capping gas prices, which will now be discussed by energy ministers in the coming weeks.