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Brussels plans ‘dynamic’ cap to contain volatility in gas prices

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Brussels plans ‘dynamic’ cap to contain volatility in gas prices

The European Union may quickly have a value cap to deliver hovering gasoline costs below management, however solely as a measure of final resort to include excessive hypothesis and volatility within the markets.

As a part of its subsequent emergency package deal to deal with the power disaster, the European Fee plans to unveil a “momentary” and “dynamic” value restrict that will apply to the transactions going down on the Dutch Title Switch Facility (TTF), Europe’s main gasoline hub.

“The time has come to place in place such mechanism,” the Fee says in a doc seen by Euronews.

The TTF is a digital market the place shippers and patrons commerce gasoline provides, each for fast supply and future provisions. Since Russia launched the invasion of Ukraine, the platform has seen abrupt ups and downs in gasoline costs, as uncertainty over provides fuelled hypothesis.

In August, the TTF reached an all-time file value of €339 per megawatt-hour, driving electrical energy payments alongside the best way. After the height, costs started a gentle downward pattern, hitting a three-month low in early October. Buying and selling on Monday morning hovered round €133 per megawatt-hour.

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The European Fee’s proposed value cap wouldn’t be completely lively however somewhat triggered solely “when wanted,” that’s when the value traded on the TTF exceeds the value set by the mechanism.

The Fee’s draft doc doesn’t specify the value vary, which is anticipated to be the important thing query across the untested measure.

The TTF already options “circuit breakers” that shield costs from struggling steep variations inside quick durations of time, though these have failed to stop the swerves seen this yr.

The Fee additionally plans a separate cap to curb value spikes of power derivatives, the monetary property that corporations use to safe power provides forward of time.

In parallel to those two caps, the manager will develop another benchmark to the TTF that will be solely devoted to the buying and selling of liquefied pure gasoline (LNG), a extremely versatile commodity that has allowed the bloc to offset among the pipeline gasoline provides that Russia has minimize off.

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Notably, the leaked doc reveals the manager led by Ursula von der Leyen will not be but prepared to maneuver ahead with a broader – and riskier – value cap that will apply to the gasoline used for electrical energy era, a proposal that von der Leyen herself hinted as a possible subsequent step.

Because the final gasoline wanted to fulfill all energy calls for, gasoline determines the ultimate value of electrical energy. A rising variety of member states wish to decouple these costs and put an finish to what they name contagion impact.

“Introducing a value cap for gasoline that’s used for electrical energy era has introduced down costs in Spain and Portugal, nevertheless it bears some dangers if launched throughout the EU,” the Fee says, referring to the state support scheme used within the Iberian peninsula.

“EU member states are various in terms of their power mixes, connections and energy methods. An answer must be designed that works for all of them and that’s according to our wider targets: not growing gasoline consumption and managing flows past the EU’s borders.”

The Fee’s tempered response is about to be welcomed by Germany and the Netherlands, who have opposed radical market intervention, however met with dissatisfaction by Italy, Belgium, Poland and Greece, the main advocates for a wider value cap.

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Final week, Kadri Simson, European Commissioner for power, mentioned a value cap required “most consensual assist” and famous not all member states had been on board.

The divisions amongst capitals are anticipated to be laid naked throughout a two-day assembly of EU leaders later this week, the place the power disaster would be the high matter on the agenda.

Apart from the TTF emergency mechanism, the Fee suggests extra measures that may assist alleviate power payments and safe sufficient provides.

The chief desires to ascertain a joint procurement scheme that will permit member states to purchase gasoline as one single shopper and use their collective buying energy to decrease costs.

“Joint buying will facilitate a extra equal entry to new suppliers and worldwide markets and provides extra negotiating weight to European importers,” the Fee’s doc says. “Russian provide sources can be excluded from participation within the platform.”

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The chief warns the bloc will undergo a niche of “uncontracted demand” of as much as 100 billion cubic metres (bcm) per yr in case of a complete interruption of Russian gasoline. (The EU’s pre-war annual consumption was round 400 bcm of gasoline, though financial savings plans will additional scale back this quantity.)

Joint purchases, the Fee says, can be significantly helpful subsequent yr, when member states will start the costly and arduous course of to refill their underground storages for the 2023-2024 winter.

Brussels additionally urges international locations to speed up the signing of so-called “solidarity agreements,” which might guarantee gasoline flows throughout borders when provides are operating low and attain international locations in want.

“Solely 6 bilateral solidarity agreements between member states have been signed, out of the 40 attainable ones,” the draft doc reads. “That is too gradual.”

In consequence, the European Fee desires to ascertain “default guidelines” on solidarity to deal with emergency conditions.

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The ultimate model of the doc can be introduced on Tuesday afternoon after the assembly of the Faculty of Commissioners.

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Can you 'Trump-proof' NATO? As Biden falters, Europeans look to safeguard the military alliance

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Can you 'Trump-proof' NATO? As Biden falters, Europeans look to safeguard the military alliance

WASHINGTON (AP) — Growing skepticism about President Joe Biden’s reelection chances has European leaders heading to the NATO summit in Washington confronting the prospect that the military alliance’s most prominent critic, Donald Trump, may return to power over its mightiest military.

NATO — made up of 32 European and North American allies committed to defending each other from armed attack — will stress strength through solidarity as it celebrates its 75th anniversary during the summit starting Tuesday. Event host Biden, who pulled allies into a global network to help Ukraine fight off Russia’s invasion, has called the alliance the most unified it has ever been.

But behind the scenes, a dominant topic will be preparing for possible division, as the power of far-right forces unfriendly to NATO grows in the U.S. and other countries including France, raising concerns about how strong support will stay for the alliance and the military aid that its members send to Ukraine.

At the presidential debate, Biden asked Trump: “You’re going to stay in NATO or you’re going to pull out of NATO?” Trump tilted his head in a shrug.

Biden’s poor debate performance set off a frenzy about whether the 81-year-old president is fit for office or should step aside as the Democratic presidential candidate.

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Even before the debate, European governments were deep in consultations on what they could do to ensure that NATO, Western support for Ukraine and the security of individual NATO countries will endure should Trump win back the presidency in November and temper U.S. contributions.

Some Americans and Europeans call it “Trump-proofing” NATO — or “future-proofing” it when the political advances of other far-right political blocs in Europe are factored in.

This week’s summit, held in the city where the mutual-defense alliance was founded in 1949, was once expected to be a celebration of NATO’s endurance. Now, a European official said, it looks “gloomy.”

There are two reasons for the gloom: Russian advances on the battlefield in the months that Trump-allied congressional Republicans delayed U.S. arms and funding to Ukraine. And the possibility of far-right governments unfriendly to NATO coming to power.

The official spoke to reporters last week on condition of anonymity to discuss private conversations among governments.

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Rachel Rizzo, a senior fellow on NATO with nonpartisan think tank the Atlantic Council, says she has a blunt message for Europeans: “Freaking out about a second Trump term helps no one.”

For allies at the summit, she said, the key will be resisting the temptation to dwell on the details of unprecedented events in U.S. politics and put their heads down on readying Western military aid for Ukraine and preparing for any lessening of U.S. support.

Trump, who before and after his presidency has spoken admiringly of Russian President Vladimir Putin and harshly of NATO, often focuses his complaints on the U.S. share of the alliance’s costs. Biden himself warned nearly 30 years ago about already-steady criticism of Europeans not carrying their weight in NATO.

The 1991 collapse of the Soviet Union lulled the West into thinking the Russian threat had been neutralized, leading to military spending cuts. Now, NATO allies are bolstering their forces against any wider aggression by Putin, and a record 23 nations in NATO are meeting defense-spending goals.

Trump’s former national security adviser, John Bolton, says Trump in a second term would work to get the U.S. out of NATO. Congress passed legislation last year making that harder, but a president could simply stop collaborating in some or all of NATO’s missions.

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Trump’s campaign did not immediately respond to an email seeking comment.

Elections in France, likewise, appear set to bring a NATO-adverse far-right party under Marine Le Pen into greater power. Far-right forces also are gaining in Germany.

Some European officials and analysts say that’s simply the rise and fall of voter allegiance in democracies, which NATO has dealt with before. They point to Poland, where a right-wing party lost power last year and whose people have been among NATO’s most ardent supporters. They also note Italy, where right-wing populist Prime Minister Giorgia Meloni has won praise as an ally.

In part in response to the United States’ political upheaval, Europeans say they want to “institutionalize” support for Ukraine within NATO, lessening the dependence on the U.S.

European allies also failed to get enough weapons to Ukraine during the delay in a U.S. foreign aid package, outgoing NATO Secretary-General Jens Stoltenberg acknowledged in a visit to Washington last month.

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That’s “one of the reasons why I believe that we should have a stronger NATO role — is that role in providing the support,” Stoltenberg told reporters.

An initiative likely to be endorsed at the summit is NATO taking more responsibility for coordinating training and military and financial assistance for Ukraine’s forces, instead of the U.S. Europeans also are talking of giving Ukrainians a greater presence within NATO bodies, though there’s no consensus yet on Ukraine joining the alliance.

Europeans say NATO countries are coordinating statements on Ukraine for the summit to make clear, for example, that additional Russian escalation would face substantial new sanctions and other penalties from the West. That’s even if the U.S., under Trump, doesn’t act.

As for NATO security overall, besides European allies upping defense spending, they’re huddling on defense strategies that don’t rely as much on the U.S. There’s also growing emphasis on ensuring each country is capable of fielding armies and fighting wars, the European official said.

The possibility of a less dependable U.S. partner under Trump is generating discussions about Europeans playing a bigger role in NATO’s nuclear deterrence, according to the Poland-based Centre for Eastern Studies security think tank. The U.S. now plays the determinative role in the nuclear weapons stationed in Europe.

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But European countries and Canada, with their smaller military budgets and economies, are years from being able to fill any U.S.-sized hole in NATO.

“If an American president comes into office and says, ‘We’re done with that,’ there is definitely will in Europe to backfill the American role,” said John Deni, a senior fellow on security at the Atlantic Council. “The Brits would jump on it.”

But “even they will acknowledge they do not have the capacity or the capability, and they can’t do it at the speed and the scale that we can,” Deni said. “This notion that we are somehow Trump-proofing or future-proofing the American commitment — either to Ukraine or to NATO — I think that mostly is fantasy.”

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Israeli Minister touts Marine Le Pen as 'excellent' option for French president: 'with 10 exclamation marks'

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Israeli Minister touts Marine Le Pen as 'excellent' option for French president: 'with 10 exclamation marks'

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An Israeli minister has endorsed Marine Le Pen for French president, saying she would make an “excellent” leader for the country as her right-wing party seeks significant gains in the current election. 

“It is excellent for Israel that she will be the president of France, with 10 exclamation marks,” Diaspora Affairs Minister Amichai Chikli said Tuesday, later indicating that his view may be shared by other members of Israel’s leadership. 

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“I think I and Netanyahu are of the same opinion,” he said when asked whether the Israeli prime minister shared his view, according to The Times of Israel. The outlet stressed that it remains unclear what had prompted Chikli to discuss Le Pen. 

Le Pen’s National Rally outperformed expectations in the European parliamentary elections, trouncing French President Emmanuel Macron’s centrist party and prompting him to call a snap election as he felt it created tension in the country if the electorate no longer believed in his party and their policies. 

FRANCE’S RIGHT-WING NATIONAL RALLY LOOKS TO SEIZE ON RECENT ELECTORAL GAINS

Israel Minister of Diaspora Affairs Amichai Chikli speaks during The Israeli American Council (IAC) 8th Annual National Summit on January 19, 2023, in Austin, Texas.  (Shahar Azran/Getty Images)

The gamble has thus far played into National Rally’s hands, and it has continued to perform well in the first round of its parliamentary election, just as it did in the European elections. The second and final round of the country’s parliamentary elections started Sunday.

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Le Pen has unsuccessfully run for president three times – in 2012, 2017 and 2022, improving her rank and share of the vote each time during that decade. Her most recent run saw her win 41.5% of the vote against Macron. 

Some speculate that the cultural issues at the heart of the election will propel National Rally – and potentially, in the 2027 presidential election, Le Pen – to control of the country. Immigration has proven a strong issue for right-wing parties across Europe, as well as the pushback those parties have shown to recent antisemitic protests and attacks.

RIVALS MOVE TO BLOCK FRANCE’S RIGHT-WING NATIONAL PARTY’S ELECTION MOMENTUM

French far-right Rassemblement National (RN) party's leader and member of parliament Marine Le Pen speaks to the press at the party's headquarters after the first results in the second round of the French regional elections in Nanterre on June 27, 2021.

French far-right Rassemblement National (RN) party’s leader and member of parliament Marine Le Pen speaks to the press at the party’s headquarters after the first results in the second round of the French regional elections in Nanterre on June 27, 2021. (Geoffroy van der Hasselt/AFP via Getty Images)

Serge Klarsfeld, a renowned Nazi hunter, last week announced that he would throw his weight behind National Rally, telling French outlet LCI that if choosing between “an antisemitic party and a pro-Jewish party, I would vote for a pro-Jewish party,” referring to National Rally, according to Le Monde. 

Antisemitism has taken sharp focus in the election after the alleged gang rape of a 12-year-old Jewish girl that many have cast as a hate crime. Two adolescent boys arrested in a Paris suburb were hit with preliminary charges in relation to the crime, with prosecutors alleging that the rape had been religiously motivated, ABC News reported. 

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Rabbi Moshe Sebbag of the Grande Synagogue in Paris said that the election has indicated to him that French Jews have “no future” in France, telling The Jerusalem Post that he urges “everyone who is young to go to Israel or a more secure country.” 

MACRON ON EDGE AS FRANCE’S RIGHT-WING NATIONAL RALLY PARTY GAINS MOMENTUM IN FIRST ROUND OF ELECTIONS

Serge Klarsfeld Election

Nazi hunters Serge Klarsfeld, left, and Beate Klarsfeld arrive to attend a national tribute at the Pantheon to late Holocaust survivor Simone Veil and her late husband, Antoine Veil, in Paris on July 1, 2018. (Ludovic Marin/Pool Photo via AP)

Sebbeg argued that even if the far-right National Rally has voiced support for Israel’s defense against Hamas following the Oct. 7 attack, the party’s roots come from a place of antisemitism that continues to trouble him. 

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Jean-Marie Le Pen has repeatedly been convicted of antisemitic hate speech and made statements downplaying the Holocaust, according to The Guardian, which prompted Marine Le Pen to distance herself and the party from its founder – her father. 

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“Many Ashkenazi Jewish families here since before World War II couldn’t think to vote for National Rally, yet the Left has been antisemitic in recent times,” said Sebbag. “The Jews are in the middle, because they don’t know who hates them more.”

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Photos: 14 killed in Nepal as flooding grips South Asia

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Photos: 14 killed in Nepal as flooding grips South Asia

At least 14 people have been killed after heavy rains triggered flash floods and landslides across Nepal, with disaster teams searching for nine missing, police said on Sunday.

Flooding in neighbouring India and Bangladesh has also caused widespread damage and affected millions.

“Police are working with other agencies and locals to find the missing people,” said Nepalese police spokesman Dan Bahadur Karki.

People have been killed or are missing in multiple locations, he said.

Monsoon rains from June to September bring widespread death and destruction every year across South Asia, but the numbers of fatal floods and landslides have increased in recent years.

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Experts say climate change and increased road construction are exacerbating the problem.

Parts of Nepal have been receiving heavy rainfall since Thursday, prompting disaster management authorities in the Himalayan nation to warn of flash floods in multiple rivers.

There have been reports of floods in several districts of lowland areas bordering India.

Last month, 14 people were killed in Nepal in ferocious storms that brought landslides, lightning and flooding.

In India, floods have swamped the northeastern state of Assam, with six people killed in the last 24 hours, the Assam State Disaster Management Authority said on Sunday.

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That takes the death toll from downpours in the state since mid-May to 70, according to the PTI news agency.

In low-lying Bangladesh, downstream from India, the disaster management agency said floods had hit more than two million people.

Much of the country is made up of deltas where the Himalayan rivers the Ganges and the Brahmaputra wind towards the sea after coursing through India.

The summer monsoon brings South Asia 70-80 percent of its annual rainfall.

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