By Jan Strupczewski

LUXEMBOURG, (Reuters) – France and Spain called Monday for a coordinated European response at the global rise in energy prices. This would protect the most vulnerable citizens as well as the competitiveness and security of businesses. It also helped to preserve Europe’s ambitious goal to eliminate CO2 emissions by 2050.

The European Union’s gas prices rose to new records on Friday, as Russia, the main supplier of the gas, kept deliveries under control. This signals further price pressures for European consumers going into winter heating season.

Nadia Calvino, Spanish Finance Minister said that there was an “unprecedented spike” in energy prices. She spoke to reporters at the Luxembourg meeting of eurozone finance ministers.

“This issue is too complex to tackle on a national basis. It requires a coordinated European response,” she stated, noting that her country has prepared a document outlining the options.

Calvino mentioned that there were several options, one being the establishment of a European strategic gas reserve. This will allow the bloc’s 450million consumers to obtain lower prices than purchasing the same products individually.

Through the negotiation for the supply of vaccines, we have seen that unity is more powerful than division,” she stated.

She added that Spain wanted to see an end to speculation in the CO2 emission permits market, which has driven up prices.

HIGHER ENERGY PRICES ARE A ISSUE FOR YEARS AND NOT MONTHS

Bruno le Maire (Finance Minister in France) struck an identical note. He said he would recommend better regulation of European gaz stocks, and that electricity prices be delinked from those of gas. This is in favor of having it tied to each country’s average cost of production.

“The European Energy Market has one major advantage: it ensures that energy is available throughout Europe. However, it has one big downside: the alignment between electricity prices and gas prices,” le Maire explained at the start of the negotiations.

He said that the link between climate change and energy was not efficient, which would have a negative impact on Europe’s progress towards renewable energies. He said that politicians must explain to their voters the long-term rise in energy prices as part of fighting climate change.

Le Maire stated that prices will rise for years and not just months because of the increased demand for electricity.

There is also a need to make more investments in renewable resources and possibly nuclear plants. It could cost a lot.

He stated that dealing with an ongoing rise in energy prices would be “one of the key political issues over the coming years”.