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European Rift to Contain Soaring Gas Prices Deepens Over Cap

  • EU Commission signals price cap isn’t best tool to cool market
  • Emergency energy package risks falling hostage to dispute
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The split in the European Union is deepening over how to contain an energy crisis, with nations supporting a price cap on imported natural gas accusing the bloc’s executive of being too slow to develop a proposal to limit the costs of the fuel.

The EU’s executive arm signaled this week that a price cap wasn’t the best tool to tackle the crisis, two weeks after the bloc’s leaders asked it to quickly draft a set of measures, including a dynamic price corridor on gas transactions. Instead, the European Commission, headed by Ursula von der Leyen, who is German, suggested a mechanism to limit excessive spikes and spread the soaring costs over time.