Energy Price Cap Battle To Dominate EUCO Summit, Risks Break In EU Unity

EU leaders meet for the second day of the European Council summit in Brussels. Major issue of the day is debate over whether the EU should implement caps on domestic energy prices, with major battle brewing between south and north EU member states (see 0930GMT bullet).

• Dave Keating at France24 tweets useful thread on state of play this morning:
  • "The disagreement on energy prices could blow up EUCO today. [Spanish PM Pedro] Sanchez is threatening to veto EUCO conclusions if there's no price changes. Team Sanchez (Italy, Portugal, Greece, Belgium) say urgent relief is needed. Germany, Netherlands say intervention is not a silver bullet & caps risk suppliers ending contracts. Germany, Netherlands also point out market intervention setting energy prices is a double-edged sword. You could set a price that's lower than market rate now, only to see the market rate fall in a few months and end up with Europeans paying more than the market rate. Long-term consequences."
  • "Entering EUCO this morning, Belgium’s (Liberal) Prime Minister Alexander de Croo says he will push for energy price caps. “Prices today have nothing to do with reality…I know that intervening in the market is not an easy thing to do, but we’re at war.” Key to watch in this debate will be the Nordics, who usually align with Germany, Austria, Netherlands against market intervention but are wavering on this. Entering EUCO, Finnish PM Sanna Marin says she's “open to all kinds of solutions” and leaders shouldn't "close any door”."