EU Sets Out Its New Energy-Intervention Package

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

The Commission will release the details of a new energy-intervention package today as the bloc looks to tackle an unprecedented crunch. It is betting on bolstering solidarity among member states and refraining from immediate gas price caps amid political divisions, market constraints and concerns over supply security. According to a draft document, the proposals will include measures to avoid extreme price spikes in energy derivatives and to alleviate the impact of the crisis on consumers and businesses. Additionally, the Commission will seek to use the EU’s joint purchasing power as leverage in negotiations with global gas suppliers. The EU plans to propose using as much as €40 billion from its budget to support people and companies struggling with high prices. The measures will next go to leaders for discussion at the EU Council later this week.