Spanish Prime Minister Pedro Sánchez announced on Friday that he has proposed to the European Commission to conduct "collective purchases" of gas in order to enhance the negotiating power of the EU amid rising energy prices. Speaking at an economic forum in Pontevedra in northwest Spain, Sánchez stated, "With the success of the collective vaccine purchase, why don't we increase our negotiating power through collective purchasing and (create) a strategic gas reserve in Europe?"
The Spanish Prime Minister, who was joined at the forum by his Portuguese counterpart António Costa, added that these purchases would serve as a means to "jointly respond to problems that affect not only Spain and Portugal... (but) the entire European Union." He explained that he has presented this proposal "to the European Commission and all member states."
Natural gas prices have risen in recent weeks in global markets, leading to increased electricity prices across Europe, particularly in Spain, France, and Italy. Experts attribute the surge to the global economic recovery following lengthy lockdowns to contain the spread of the coronavirus, as well as maintenance issues and purchases being made by Asian countries in particular.
In response, several European countries have taken measures to mitigate the impact of the increase on consumer bills, with Spain deciding to temporarily cut the value-added tax on electricity. For its part, the European Commission has expressed its readiness to approve "temporary measures" from European countries, such as lowering value-added taxes and providing assistance targeted at families and small businesses.
European Council President Charles Michel has placed the topic on the agenda for the upcoming meeting of EU heads of state and government on October 21-22.
