Energy Crisis Exposes EU Tensions With Few Fixes for Leaders

  • EU heads of state to debate energy crunch at summit Thursday
  • Spike in power, gas prices threatens support for green reforms
WATCH#: Europe could run out of natural gas and see prices surge from already unprecedented levels if the winter proves “really cold,” according to Citigroup.(Source: Bloomberg)
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Soaring energy prices are exacerbating divisions in the European Union as national leaders brace for heated talks about how to protect the most vulnerable and avoid a backlash against the bloc’s ambitious climate change plan.

The unprecedented spike in power and gas prices is the first topic for EU leaders in their two-day summit starting Thursday in Brussels, but the bloc’s ability to act is extremely limited. Most countries have already cut taxes or approved subsidies to help households and companies, and there are few remaining tools that are technically possible and politically palatable.