The primary focus of discussions for EU energy ministers gathering in Luxembourg on Tuesday (17 October) is the ongoing dispute between France and Germany regarding the future
competitiveness of their respective industries, according to EU diplomats.
In March of this year, the European Commission presented a proposal to revamp regulations governing the European Union's electricity markets. The move came in response to the surging energy prices witnessed in Europe during 2021 and 2022. The new regulations aim to safeguard consumers from the volatile fluctuations in fossil fuel markets by transitioning to more stable, long-term, fixed-price contracts.
Nevertheless, the progression of this proposal into law is currently hindered by a single contentious article – Article 19b.
Article 19b specifies the guidelines for the utilization of state aid in supporting energy projects. Germany is apprehensive that France, with its extensive nuclear energy capacity, could provide such contracts to its existing nuclear energy facilities and then channel the surplus revenue from these contracts into subsidizing various industries.
Germany, often regarded as Europe's economic powerhouse, is teetering on the brink of recession after losing its longstanding access to affordable Russian gas. Berlin anticipates a 0.4% economic contraction this year as its industrial output continues to dwindle. Photo by Streppel, Wikimedia commons.