POtto von Bismarck once said that politics is the art of the possible. In the current situation, all that was probably possible at the EU summit was a sham compromise that everyone involved initially sold as a success by postponing important decisions.
Once again, however, the impression is created that Germany is offering tentative resistance to decisions whose economic consequences will not benefit Europe. Chancellor Olaf Scholz had to expect criticism from Germany’s partners at the summit, but not complete snubs. At best, Russia’s President Vladimir Putin would have benefited from an obvious picture of the disunity in the European Union.
supply and demand
However, nothing has changed in the situation: the inflation, which is driven by the sharp rise in energy prices, among other things, is a burden for many people, and politicians are feeling their displeasure. Many politicians, who care a lot about political decisions and little about market mechanisms, would like to counter this by capping the price of gas.
But even if the supply situation for the current winter looks better than a few weeks ago and the wholesale price for gas has been falling again for some time, further savings are recommended at the latest with a view to winter 2023/2024. However, the more the price is capped, the more the incentive to save decreases. Likewise, the more Europe caps the price, the more customers will be looking for gas supplies outside of Europe.
Appeals to third countries that they should make gas available to Europeans at preferential prices are not even suitable as temporary assistance. No EU politician can override the law of supply and demand.
It would be naïve to believe that summits are all about the power of factual arguments. If the federal government should value more understanding from its partners, it could try a more coherent policy at home and a more diplomatic approach in Europe. Then maybe better summit results would be possible.
