The European Union revealed on Wednesday its plans to raise over $140 billion in an effort to combat the ongoing energy crisis. “EU Member States have already invested billions of euros to assist vulnerable households. But we know this will not be enough,” European Commission President Ursula von der Leyen stated following the announcement.
Capping the revenues of those electricity generators that benefited from surging energy prices but do not rely on gas will be first priority, while fossil fuel-based producers will also be expected to share some of their profits from energy sales. The purpose of this move is to quell the financial strain being faced by businesses and households.
European gas prices have rocketed following Russia’s invasion of Ukraine, with Western-imposed sanctions against Russia leading to a severe reduction in Russian fuel exports to Europe. This has resulted in inflated energy bills for households across the continent.
Previously, the European Commission considered capping Russian gas prices. With EU member states expressing disagreement over this motion, Russia’s resulting threat to cut off all fuel supplies dissuaded the body from advancing this idea.
Ahead of the coming winter, Europe has been working towards filling its gas storage facilities, having already met its target of reaching 80% capacity by November.