EU Spooked by Energy Prices Running Wild

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

European energy prices are spiraling out of control. Gas prices have surged 60% in just two days, pushing industry in the region to the breaking point and rattling financial markets. The EU is sounding the alarm, with the Commission set to outline next week exactly what action member states can take to protect citizens from the soaring costs, without falling foul of state-aid rules. For their part, environment ministers across the bloc are getting jittery, with a number of countries expressing growing concern over the EU’s plans to create a new emissions trading system for road transport and heating — something they deem will hit the poorest most. But Frans Timmermans, the EU’s climate chief, is sticking to his guns, saying that rising carbon prices are only to blame for a fifth of the increase in electricity prices and that the solution is more renewables, not fewer. Whether he can keep the transition on track may depend on how quickly prices start to return to normal.