EU Set to Intervene to Ease Liquidity Strains in Energy Markets
- Commission will talk to regulators to ease collateral squeeze
- EU also proposes levy on profits of power and oil firms
Ursula von der Leyen speaking at EU headquarters in Brussels, on Sept. 7.
Photographer: Kenzo Tribioullard/AFP/Getty Images
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The European Union is poised to take steps to ease the mounting stress in energy markets caused by surging collateral requirements, as companies cry out for government help.
Amid growing signs of stress, and as energy firms “face difficulties financing those margin calls for lack of cash collateral,” the EU’s executive arm wants to take dramatic action as part of a broader package of measures to tame the crisis.