Spiegel compares EU decision on gas price ceiling to a sieve

  1. Spiegel: EU decision to impose gas price ceiling resembles sieve

Spiegel compares EU decision on gas price ceiling to a sieve

The European Union’s decision to impose a cap on gas prices is full of holes, which will make its implementation ineffective, writes the German publication Spiegel.

The author of the article, Stefan Schulz, notes that the “ceiling” rule has many ways around it. In addition, there are conditions under which it can be suspended at all.

“This ‘ceiling’ resembles a sieve. For example, it should apply to all European platforms. However, the European Commission reserved the right to make exceptions,” the publication said.

The adopted format can only be seen as an attempt to save face, but such a decision will not be successful.

“There is no doubt that the price ceiling will be lifted in some cases. In particular, this could happen if EU citizens start to consume more gas if too many LNG tankers head for Asia,” Schulz summarised.

The day before, the EU countries had agreed on a ceiling exchange price for gas. It will be 180 euros per MWh (nearly $2,000 per thousand cubic meters at current exchange rate) and will take effect on February 15.

The measure is aimed at protecting European households and businesses from fuel price hikes. High energy costs, as noted by the media, have caused the highest inflation in decades.

The West has increased sanctions on Moscow over Ukraine. This has led to higher electricity, fuel and food prices in Europe and the US.

President Vladimir Putin has previously said that the policy of containing and weakening Russia is a long-term strategy of the West, and the restrictions have dealt a serious blow to the entire global economy.

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