The real question is whether the market works and whether it reflects the basic principles of supply and demand, said the Prime Minister, Kyriakos Mitsotakis, speaking to Bloomberg letter sent to the President of the CommissionUrsula von de Layen to tackle energy price hikes.
It is clear, he stressed, that the market is no longer functioning properly and the question arises to proceed with a more drastic intervention, in order to actually achieve a new balance and to avoid excessive fluctuations.
“This is at the heart of my proposal to the Commission. It is a bold proposal, I understand, but at least it puts the essence of the problem in its true dimension, “he said, noting that European leaders will discuss it at the European Council tomorrow.
Mr. Mitsotakis reminded that when the Recovery Fund was created after the pandemic, many leaders considered it unthinkable.
“We are now facing a very extreme situation. Just look at the effects on electricity bills, not only in Greece but in many European countries. You understand the pressure on citizens and businesses. Of course we subsidize the electricity. “All European countries do, but I believe that systematic intervention is needed.”
At the same time, he mentioned that there are other ideas on the table, such as from Spain in terms of the operation of the electricity market. “It simply came to our notice then a pan-European solution to a European problemHe added.
The Prime Minister also noted that the supply of natural gas has not changed in substance and therefore, he said, dramatic increases are not justified.
He noted that the Commission was working on a plan to accelerate Europe’s dependence on natural gas, but that this was a process that would not proceed overnight.
“That is why I support short-term intervention in the pricing structure of the gas market,” he continued, adding that the European Council will also discuss the decisions they have already taken on de-lignification and renewable energy sources.
“Getting away from the gas at a very fast pace definitely takes more time than we have at our disposal,” he added.
At the same time, he said that it was clear to Europe that we should reduce our dependence on Russian gas as soon as possible, something that would not happen overnight. “Let’s look at it in the short term because the problem is so severe that it puts a burden on consumers and businesses that will not be manageable at the level of national budgets,” he said.
Regarding the possibility of banning the import of energy sources from Russia, he replied that it is not a realistic proposal, while in case Russia proceeds before Europe, he stressed that if it happens we should be ready.
He also stated that in Greece we have management plans and we are preparing for all scenarios. “If you ask if we, as Europe, can unilaterally move away from Russian gas overnight, that is not realistic,” he added.
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