Energy prices and inflation
Inflation is a pressing economic problem on both sides of the Atlantic but as US inflation starts to ebb, Europe continues to suffer under a stubbornly high inflation rate that has yet to show clear signs of dissipating. This CEPS Explainer addresses the asymmetries in energy price inflation across the Atlantic, as well as within […]
Why gas price caps and consumer subsidies are both extremely costly and ultimately futile
The EU is facing an energy crisis. Russia’s de facto embargo on gas exports has sent spot prices on Europe’s exchanges to unprecedented levels. The prices paid by consumers have also increased, albeit much less so than the spot prices. Prices for households have doubled in many Member States, while gas spot prices on the […]
Why gas price caps and consumer subsidies are both extremely costly and ultimately futile
Europe faces a tough winter as gas is indispensable in keeping homes warm. The only alternative to the loss of Russian gas is LNG. But LNG is only available at a higher price because it can only come to Europe if consumers in the rest of world use less gas. The LNG supply is thus […]
With a looming winter gas crisis, the EU doesn’t need an empty symbol of solidarity
EU energy ministers’ recent ‘political agreement’ on natural gas was touted as an example of European unity and solidarity. It might be a show of political unity but there was very little substance on display. The essence of the agreement is a ‘voluntary reduction of natural gas demand by 15 % for this winter’. Moreover, it […]
A tale of two prices
A steep rise in energy prices is currently making news headlines across Europe, with the costs of natural gas and electricity being keenly felt by consumers and industry. Moving away from the news cycle though, the underlying forces at work behind these increases are complex and nuanced. They are also intertwined with the various EU […]