EU examines options for introducing temporary price caps on natural gas

The European Commission is examining options for introducing temporary price caps on natural gas within the European Union. This decision is being considered in response to the recent sharp increase in gas prices, which has become a significant challenge for the European economy. This was reported by the *Financial Times* newspaper, citing its sources in Brussels.

In particular, the publication notes that European natural gas prices this week reached their highest levels in the past two years. One of the reasons for this is low temperatures and a lack of wind, which reduced the production of energy from renewable sources. As a result, gas prices in Europe have become three to four times higher than in the United States, which significantly complicates the situation for European companies that are forced to compete with other markets.

Meanwhile, Brussels is actively studying the possibility of introducing price caps as part of preparations for the "clean industry" plan, which is to be presented in March this year. One of the main objectives of this plan is to support the EU's heavy industry, particularly in the context of growing concerns such as "aggressive trade measures" by the US. It is proposed to introduce a cap on gas prices in the summer, when European countries usually stock up on fuel for the winter season.

However, the possibility of capping prices has already sparked protests from a number of industry groups. They express concern that such steps could "undermine confidence" in the European energy market and negatively affect the stability and security of gas supplies. In their letter to the President of the European Commission, Ursula von der Leyen, 11 energy and financial associations highlight the risks associated with possible caps.

Recall that energy prices are one of the biggest problems facing Europe in the context of an ongoing energy crisis caused not only by global climate change, but also by geopolitical factors. The introduction of restrictions could be an attempt to save the EU economy from further rising energy costs and to ensure more affordable prices for industry.

However, the question of whether such measures will be effective and to what extent they can satisfy all parties remains open. The European Commission plans to discuss these options in upcoming meetings with member state governments in order to adopt the most balanced solution for the EU economy.