Germany on collision course with France, Spain over EU power market reform

(EurActiv, 21 Feb 2023) Three weeks before the European Commission tables its proposal to reform the EU’s electricity market, Germany’s position on the issue is still being fleshed out but initial signs already point to a looming clash with pro-reform countries like France and Spain.

The Commission is currently preparing a review of EU electricity market rules, arguing that the EU power market “does not work anymore” and needs to be adapted to the “new realities of dominant renewables” and higher gas prices.

European Commission President Ursula von der Leyen has made the reform a priority, with a concrete proposal expected on 14 March.

But while France and Spain are pushing for reform, Germany has decided to defend the status quo. 

According to Berlin, the spike in electricity prices seen in 2022 was the result of extraordinary circumstances caused by falling gas supplies from Russia, not by faulty market design.

“Europe has one of the best functioning electricity markets in the world,” said Robert Habeck, Germany’s minister of economy and climate action.  

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EurActiv, 21 Feb 2023: Germany on collision course with France, Spain over EU power market reform