EU Fights Back With Gas Cap

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

The EU is fighting back against Russian President Vladimir Putin's energy war with an emergency brake on natural gas prices to prevent excessive spikes. As Moscow threatens to further squeeze gas flows to Europe, the Commission yesterday proposed a cap level of 275 euros per megawatt-hour, to be activated only after a series of conditions are met. That’s well above current levels of about 120 euros, but below the highs the continent suffered in the summer. Now the work shifts to national governments, who've been divided over how to tackle the crisis and who'll have to sign off on the plan before it enters into force.