Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

France, Spain urge pan-European response to energy price surge

CommoditiesOct 04, 2021 03:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
3/3 © Reuters. Spain's Economy Minister Nadia Calvino speaks as she arrives for a Euro zone finance ministers meeting in Luxembourg, October 4, 2021. REUTERS/Yves Herman 2/3

By Jan Strupczewski

LUXEMBOURG (Reuters) -France and Spain on Monday called for a coordinated European response to the surge in global energy prices to protect Europe's poorest citizens, the competitiveness of its businesses and its 2050 plan to cut greenhouse emissions.

The call, along with ideas shared by European Union governments during talks between euro zone finance ministers in Luxembourg, would complement the European Commission's work to address the energy price spike, the chairman of the meeting said.

Gas prices in the European Union surged to record highs on Friday as the bloc's main gas supplier Russia kept a tight lid on deliveries, signalling further price pressures on European consumers heading into the winter heating season.

While the ministers agreed the inflation spike caused mainly by energy costs was temporary and would subside in 2022, it was worrying and needed monitoring.

"What we see is an unprecedented spike in energy prices," Spanish Finance Minister Nadia Calvino told reporters on entering euro zone finance ministers' talks in Luxembourg.

"This is not an issue that we can tackle at national level, we need a European coordinated response," she said, adding her country had prepared a paper on the possible options.

One of the ideas presented by Spain was to set up a strategic European gas reserve, which would help the 27-nation bloc of 450 million consumers negotiate lower prices, the Spanish paper, seen by Reuters, said.

"We can and should increase our bargaining power," the paper said. "This requires a centralised European platform to purchase natural gas. We have done it quite successfully for vaccines and should reproduce this model to other strategic fields such as this one," it said.

Spain also wants to stop speculation on the market for CO2 emissions permits, which drove up prices, the paper showed. "A bubble on EU Emissions Trading System (ETS) is the last thing we need. The EU ETS trading should not be available to all agents, especially not to speculators with market power," it said.


French Finance Minister Bruno le Maire proposed better regulation of European gas stocks and a de-linking of the price of electricity from gas prices in favour of tying it to the average cost of production in every EU country.

"The European energy market has one key advantage - it secures the supply of energy everywhere in Europe. But it also has one major downside - the alignment of electricity prices with gas prices," le Maire said on entering the talks.

He stressed such a link created a "dead end" for Europe's transition towards renewable energy sources as the higher electrification effort of moving away from combustion engines, would only end up in higher prices if they continued to be linked to a fossil fuel like gas.

He also said the fight against climate change will entail a long-term increase in energy costs because of the existing link to gas prices and the high investment needed into renewable energy sources and nuclear power plants.

"For years, not months, we will have to face an increased level of prices," le Maire said, adding that high energy prices would be "one of the major political issues for the coming years".

France, Spain urge pan-European response to energy price surge

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Todd Gray
Todd Gray Oct 04, 2021 4:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the American liberals sure aren't concerned about poor people being able to afford fuel & energy. it's just an opportunity to gain more power over the people by immobilizing them with fear. not Christians, at all.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email