RFI
24 Jun 2022, 23:46 GMT+10
EU leaders met on Friday to prepare for further cuts in Russian gas, limit the impact on inflation and seek alternative supplies.
A day after celebrations over setting Kyiv on the road to membership of the bloc, Friday's summit in Brussels was a sober reflection on the economic impact of Russia's invasion of Ukraine.
French President Emmanuel Macron hailed the EU's prompt collective response to Russia's invasion of Ukraine as France's rotating presidency of the bloc draws to an end.
Following unprecedented Western sanctions imposed over the invasion, a dozen European countries have so far been thumped by cuts in gas flows from Russia."It is only a matter of time before the Russians close down all gas shipments," said one EU official ahead of Friday's talks.
Russia closing gas tap exposes French and German dependency on nuclear and coal
"The notion of cheap energy is gone and the notion of Russian energy is essentially gone and we are all in the process of securing alternate sources," Latvian Prime Minister Krisjanis Karins said, adding governments must "support those portions of society that suffer the most".
German Economy Minister Robert Habeck warned his country was heading for a gas shortage if Russian supplies remained as low as currently, and some industries would have to close come winter.
The EU relied on Russia for as much as 40 percent of its gas needs before the war - rising to 55% for Germany - leaving a huge gap to fill in an already tight global gas market.
Inflation was the main concern in morning talks among leaders on the EU's economic situation, but there were also positive comments about growth and the summer tourism season, an EU official said.
Inflation in the 19 countries sharing the euro currency has shot to all-time highs above 8% and the EU's executive expects growth to dip to 2.7 percent this year.
According to a draft statement, EU leaders will say that "in the face of the weaponisation of gas by Russia", the European Commission should find ways to secure "supply at affordable prices".
"We need to start buying energy collectively, we need to implement price caps and we need to make plans together to get through the winter," Belgian Prime Minister Alexander De Croo said as he arrived at the summit.
"If we don't pay attention then the whole EU economy will go into a recession with all its consequences."
The bloc responded to the war with uncharacteristic speed and unity, but some sanctions, such as a planned embargo on Russian oil imports, have repercussions for its economies.
EU countries have already poured billions of euros into tax cuts and subsidies to combat surging energy prices.
But that adds up to hefty bills for already stretched coffers, leaving many scrambling to find a solution, and EU countries disagree on a bloc-wide solution to address soaring prices.
Spain and Portugal capped gas prices in their local electricity market this month, but other states warn price caps would disrupt energy markets and drain state coffers further, if governments had to pay the difference between the capped price and the price in international gas markets.
(with Reuters)
Get a daily dose of International Travel News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to International Travel News.
More InformationNEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
NEW YORK CITY, New York: Financial markets kicked off the week on a cautious note as President Donald Trump rolled out a fresh round...
RIO DE JANEIRO, Brazil: At a two-day summit over the weekend, the BRICS bloc of emerging economies issued a joint declaration condemning...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
PARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...
Pune (Maharashtra) [India], July 11 (ANI): A stunning transformation is underway in Pune, where trash is being turned into timeless...
New Delhi [India], July 11 (ANI): A special 'Swarnim Bharat Yatra' tourist train under the Bharat Gaurav scheme will depart on August...
Kolkata (West Bengal) [India], July 10 (ANI): Jammu and Kashmir Chief Minister Omar Abdullah on Thursday said that the responsibility...
Kolkata (West Bengal) [India], July 10 (ANI): Jammu and Kashmir Chief Minister Omar Abdullah on Thursday said that he stands firmly...