Scholz: Europe sends clear signal of support to Ukraine

Leaders from the European Union's 27 member states met in Prague on Friday for talks on Russia's war in Ukraine and tackling spiking energy prices in the bloc.

Leaders hoped to shore up unified positions and bridge considerable differences in addressing the energy crisis ahead of a formal summit in Brussels later in October.

What did Scholz say?

Following the talks, German Chancellor Olaf Scholz told reporters that after the meeting that it was clear that "the countries of Europe will stay on Ukraine's side," particularly as "Putin aims to divide" the EU.

He added that Kyiv's financial needs for the year had already been met with international aid money.

Speaking about the energy crisis, he said "we all agree that gas prices are much too high," and that the bloc's leaders would speak with major oil-producing allies like Norway and the US as to how prices might be reduced further.

The German chancellor added that he had "cleared up confusion" about Germany's contested relief package, "I am sure that everyone knows such measures are necessary, and similar steps will have to be taken everywhere."

Closing his short speech, he said that he was aware that "the autumn and winter will take a lot of work" to see through, economically and politically, but that he was confident Europe and its allies would overcome the challenges together.

But Poland attacked the German plan to spend €200 billion to protect German consumers and businesses from soaring energy costs.

"The richest country, the most powerful EU country is trying to use this crisis to gain a competitive advantage for their businesses on the single market. This is not fair, this is not how the single market should work," Polish Prime Minister Mateusz Morawiecki said.

French President Emmanuel Macron, however, warned that the winter of 2023-24 "will be even harder," under the current conditions. He stressed that Europe needed to cast its net for gas suppliers even further, mentioning Asia in particular.

Asked if leaders had agreed on concrete steps to address the crisis as a bloc, Macron said no, "because no concrete mechanisms have been proposed by the European Commission."

Commission President Ursula von den Leyen said that such proposals would be forthcoming in the next few weeks.

What were the top issues?

With public and business anxiety rising as Europe nears winter, leaders will need to address skyrocketing energy prices and supply stops from Russia.

The most drawn-out discussions involved whether the bloc should implement a cap on gas prices — and how to do so.

A few of the price cap proposals include:

• Putting a price gap on Russian gas imports
• Reducing the price of other gas imports
• Limiting the price of gas for electricity generation
• Capping the price of gas transactions within the bloc

On Friday, leaders also discussed an EU push for more military support for Ukraine.

The bloc's foreign policy chief, Josep Borrell, said he wanted leaders to back a proposal for more weapons and equipment for Kyiv, as well as a training mission for Ukraine's armed forces.

Borrell did not mention a concrete amount for a new military aid package for Ukraine. 

The EU leaders also spoke with Ukrainian President Volodymyr Zelenskyy via video-link.

What were the sticking points?

Potential price caps on gas were the most disputed measures on the agenda for Friday's talks. Fifteen EU states are in favor of a cap but face staunch resistance from some of the bloc's major economic players.

Slovakian Prime Minister Eduard Heger said that "a gas price cap must be set so that deliveries are not threatened," suggesting the EU make joint purchases in the spring after national reserves empty out over the winter.

However, Germany, Denmark and the Netherlands have been leading the charge on opposing any cap, voicing concerns that such a measure could make it difficult to buy the gas they need to keep their national economies running.

They also argued that it would dampen incentives to reduce gas consumption.

German Chancellor Olaf Scholz's government has also raised the ire of several EU member states after announcing a national energy aid package worth €200 billion ($196 billion).

Poland and other countries criticized the move, saying it gives Germany and its industry an advantage as other EU member states cannot afford to implement similar measures at home.

Belgium defended Germany's move, saying that if the EU does not implement a unified approach to the energy crisis, individual governments will be forced to create their own plans.

Another more general hurdle towards an agreement is the fact that each of the EU's 27 member states relies on different energy sources and supplies. Germany, in particular, relies heavily on Russian gas and has been hit hard by supply stops from Russia.

On Thursday, a broader summit comprising leaders from 44 European nations was also held in Prague. Russia and its ally Belarus were notably absent from the invitation, highlighting President Vladimir Putin's isolation.

rs,es/nm (AP, dpa, AFP, Reuters)