MNI BRIEF:Germany To Resist SURE Proposals At Summit-Officials

Some EU leaders are likely to broach the question of adopting a new SURE-style loan programme to help consumers and businesses deal with the consequences of high energy prices at their summit meeting in Brussels on Thursday and Friday, but the proposal will continue to face stiff German resistance, officials told MNI.

The idea of a new SURE loan programme has already been raised by commissioners Paolo Gentiloni and Thierry Breton, but Berlin has been opposed, official noted. Germany’s own recent EUR200 billion energy package has raised concerns about fairness from other member states with fewer resources to support their industry. (See MNI BRIEF: Germany Tries To Calm Storm Over EUR200Bln Aid Plan)

Alternative options remain on the table, including resorting to so-far untapped loans from the NextGenerationEU programme, one senior official said, noting however that the fact that NextGenEU loans are meant for investment only might be a barrier to their use to support consumers.

Leaders also look set to split again on the European Commission’s proposed price cap or “dynamic corridor” for natural gas, with concerns about the potential leakage of subsidised gas to third countries, like the UK and Switzerland, as well as how to define “extreme” price levels.

The senior official noted the recent downward trend in market prices, suggesting a cap may eventually not be needed.