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Greece & 3 EU countries sent letter to Commission over cap on gas prices

Greece, along with Italy, Belgium and Poland, has sent a letter to the European Commission ahead of a meeting by EU energy ministers on Friday, regarding a proposed cap on natural gas prices.

According to points on a draft seen by the by Greek state-run news agency amna, the letter notes that the cap can be designed in such a way as to ensure security of supply and free flow in Europe, while at the same time meeting the common goal of reducing demand for natural gas.

So far, 11 countries are in favour.

In addition to the four EU member-states that sent the letter (which were in favour of coordination and adopting a common line), support has been expressed by Romania, Malta and others, though with certain modifications.

Discussion on the proposals are still ongoing and there may be changes.

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One comment

  1. Nobody can cap the price of natural gas. It is traded freely on a world market and the price is determined by market forces and supply and demand constraints.

    Governments can subsidise the price so that the consumer price is capped but governments have no money. They can pay the subsidy out of taxes or by borrowing. Either way the consumer still pays either today or in the future. In principle they could tax the excess profits of the companies who extract natural gas and use that to pay for the subsidy but in reality, for most governments, that is not possible because they have no legal jurisdiction over those companies.