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EU Prepares Gas "fist"

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EU Prepares Gas "fist"

Brussels wants to use the experience of 2023.

The European Union is preparing to resume joint gas purchases at the bloc-wide level. This is Brussels' response to instability in the Middle East and the threat of an energy crisis.

This is reported by Politico.

Brussels plans to relaunch the AggregateEU platform, which operated in 2023. It allowed companies to pool their requests, which strengthened their bargaining power with foreign suppliers.

The EU now plans to improve the program and look into coordination with oil and gas suppliers. There will be joint purchases of hydrogen and raw materials, as well as increased control over the jet fuel market.

The new approach should provide "negotiating power vis-à-vis Asia." A source familiar with the Commission's position told the publication.

What's wrong with the EU's plan

The idea of joint procurement is not to everyone's liking. Businesses often question the effectiveness of such measures. Critics point to the lack of transparent data and believe that EU intervention could disrupt supply chains.

European Commission President Ursula von der Leyen defends the project. In early April, she announced the figures: the platform has collected demand for 90 billion cubic meters of gas since 2023. However, she acknowledged that the system needs to be improved.

"We are not starting from scratch with this coordination in the energy sector, but we can do more and better," von der Leyen said.

Market experts, however, remain skeptical. Many are convinced that bilateral contracts between major players work faster. Brussels, however, insists on unity so that richer countries do not "outbid" poorer neighbors.

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