German Anger Spills Over as Countries Balk at Gas-Sharing Deals
(Bloomberg) -- Hope is dimming in Germany that it will be able clinch more gas solidarity agreements with European Union partners beyond the ones already in place with Denmark and Austria, a potential further hindrance to Berlin’s ability to mitigate the effects of the energy crisis.
Most Read from Bloomberg
Double Rainbow Appears Over Buckingham Palace as Crowd Gathers to Mourn Queen
Queen Elizabeth II, Britain’s Longest-Reigning Monarch, Dies at 96
Germany’s neighbors Belgium, Luxembourg, the Netherlands and Poland refuse to engage in “constructive negotiations” about such bilateral deals, German Economy Minister Robert Habeck said in a report to lawmakers seen by Bloomberg.
That could exacerbate the gas crunch in Germany “because a substantial building bloc of the EU’s gas crisis resilience in the form of bilateral agreements would not be available,” Habeck said in the paper, which he presented to the Bundestag’s energy and climate committee late Wednesday in Berlin.
Such deals between EU member states are part of a larger EU mechanism that set out action to be taken in a gas emergency. They guarantee that one country will supply the other with gas if that state runs out or doesn’t have enough to supply the households and social services which enjoy special protection under EU law.
Germany is in talks with Italy and the Czech Republic, but discussions with Rome are on hold until after elections later this month, according to Habeck, a member of the Greens party who is also the vice chancellor in the ruling coalition.
The agreement with Italy would be a trilateral deal with Switzerland as gas would need to transit across that country into Germany.
In the report, Habeck also referenced a recent phone call between German Chancellor Olaf Scholz and French President Emmanuel Macron. He said that France promised to finalize work on pipelines that would enable it to supply Germany with gas, if necessary. In return, Germany pledged to supply France with electricity.
The main reason Belgium, Luxemburg, the Netherlands and Poland are refusing bilateral agreements with Berlin is because they don’t want to be on the hook to compensate their suppliers in the event gas gets rerouted to Germany, Habeck said.
The Czech Republic would be willing to sign such an agreement, but only if there is a cap on government compensation for suppliers.
Given these problems, “there is currently no progress to be expected from negotiations about bilateral solidarity agreements,” Habeck’s paper concludes.
Most Read from Bloomberg Businessweek
What a Rocket Startup That Helped Create the ‘New Space’ Wave Leaves Behind
How a Sparkling Water Company Built a Brand on Bruised Fruit
©2022 Bloomberg L.P.
