The Prime Minister of Portugal Antonio Costa today called for the introduction of a maximum reference price for natural gas in the European Union but also for an urgent reduction of VAT on energy products, in order to protect consumers from rising prices.
European leaders plan to discuss measures they intend to take at the Brussels summit on March 24-25, after the price of gas skyrocketed, following Russia’s invasion of Ukraine. Speaking to the Portuguese parliament today, Costa said any imposition of a cap should not jeopardize Europe’s gas supplies.
The ceiling is necessary so that there is no “contamination” of the price of electricity due to the high price of gas, Costa explained.
Spain and Portugal said last week they planned to propose a cap (180 euros per megawatt-hour) on the price of electricity, but on Monday a source in the Spanish Ministry of Energy said that Madrid would instead promote the idea. the decoupling of the price of electricity from that of gas.
However, Costa reiterated today that Spain “does not deviate” from its original intentions, insisting that the imposition of a maximum price should not jeopardize gas supplies, something that “could affect many European countries, such as Germany. , which are highly dependent on gas.
“We are cooperating with other member states and with the European Commission,” he said, calling for joint European procurement mechanisms to be put in place, “not only for energy but also for other basic agri-food items, such as fertilizers.”
Portugal has already asked Brussels to allow a temporary reduction in VAT on energy products, and Costa said the Commission “should allow all European countries” to reduce the tax.
SOURCE: ΑΠΕ-ΜΠΕ
Source: Capital
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