German chancellor Olaf Scholz dropped his opposition to an EU gas price cap after late-night summit talks aimed at quelling the energy crisis hanging over the union’s economy.
Draft conclusions seen by the Financial Times showed that leaders were prepared to endorse further work towards a gas price cap — although with heavy caveats aimed at easing Berlin’s fears that market interventions could endanger security of supply.
The compromise is a relief for EU countries including Italy, France, Spain and Belgium, which have long demanded a ceiling on gas prices as the cornerstone of efforts to ease the pain of soaring energy costs following Russia’s war in Ukraine.
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