EU Commission Eyes Joint Gas Purchases Funded by Union Budget
Brussels proposes using the EU budget for joint gas purchases in a supply crisis, but funding and cost-sharing details remain undefined in the draft.
English · Original discussion in Spanish · Published
Brussels Shields Gas with Public Funds Ahead of Next Crisis
Brussels wants to be able to buy gas with everyone's money. The draft of the new energy security regulation contemplates opening the community budget to finance joint purchases when a regional alert or an alert for the entire Union is declared. It is the central piece of a future European energy shield that, unlike the current instrument – already jokingly nicknamed the Gas Tinder – would indeed have budgetary funds behind it. The economic design, the operational aspects, and the cost-sharing remain undefined. It is a draft.
Subsidizing Inelastic Imports
The strongest argument against the shield is not ideological, but market physics. If supply doesn't arrive, subsidizing the purchase doesn't create molecules: the price rises again until demand is destroyed, and whoever pays with public money will be paying euros to heat exactly the same bill. There is no miracle that makes gas reach everyone when gas doesn't arrive. Some also point out that the real goal is not to save European consumption, but to squeeze other countries' consumption until their liquefied gas ends up turning towards Europe. And those who remember that gas is paid for in dollars antiestéticar the usual: more printed euros, a weaker euro, everything more expensive.
The Problem Isn't Money, It's Ships
Before discussing cost-sharing, the serious conversation is logistical: securing contracts with LNG tankers, including those sailing under opaque flags. Electrification reduces dependence, but in the long run. A supply crisis linked to the conflict in Iran, however, is a matter of months, with winter approaching. Two different clocks that must be moved simultaneously, and neither forgives.
With these elements, the shield promises. And its bill, too. The only figure circulating these days at any bar is that of a French omelette sandwich: 10 euros. It is not an official indicator. But it explains the temperature better than any press release.
Brussels wants to be able to buy gas with everyone's money. The draft of the new energy security regulation contemplates opening the community budget to finance joint purchases when a regional alert or an alert for the entire Union is declared. It is the central piece of a future European energy shield that, unlike the current instrument – already jokingly nicknamed the Gas Tinder – would indeed have budgetary funds behind it. The economic design, the operational aspects, and the cost-sharing remain undefined. It is a draft.
Subsidizing Inelastic Imports
The strongest argument against the shield is not ideological, but market physics. If supply doesn't arrive, subsidizing the purchase doesn't create molecules: the price rises again until demand is destroyed, and whoever pays with public money will be paying euros to heat exactly the same bill. There is no miracle that makes gas reach everyone when gas doesn't arrive. Some also point out that the real goal is not to save European consumption, but to squeeze other countries' consumption until their liquefied gas ends up turning towards Europe. And those who remember that gas is paid for in dollars antiestéticar the usual: more printed euros, a weaker euro, everything more expensive.
The Problem Isn't Money, It's Ships
Before discussing cost-sharing, the serious conversation is logistical: securing contracts with LNG tankers, including those sailing under opaque flags. Electrification reduces dependence, but in the long run. A supply crisis linked to the conflict in Iran, however, is a matter of months, with winter approaching. Two different clocks that must be moved simultaneously, and neither forgives.
With these elements, the shield promises. And its bill, too. The only figure circulating these days at any bar is that of a French omelette sandwich: 10 euros. It is not an official indicator. But it explains the temperature better than any press release.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (24 replies).
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