EU nations fail to reach agreement on price cap for natural gas

BRUSSELS

European Union countries failed to reach an agreement on a price ceiling for natural gas, the Czech industry minister said Tuesday.

Following an extraordinary meeting of EU energy ministers in Brussels, Jozef Sikela said they could not reach a final agreement on setting a cap on natural gas prices.

Sikela chaired the meeting under his country’s EU’s presidency.

"We tried to agree on a package that could be accepted by many different member country groups," he said, adding they included a revision in the package to evaluate the positive and negative effects of the gas price cap mechanism in February.

They have submitted a proposal that includes the automatic deactivation of the mechanism to reassure member states that have concerns about gas supply security and financial stability, he said.

Recalling that natural gas prices peaked in Europe in August, Sikela emphasized the importance of the establishment of the mechanism to ensure they would not experience the same situation again.

"There will be only one subject we will discuss at the meeting on Monday, and that is the price level that will initiate the mechanism," he added.

The European Commission proposed to implement a correction mechanism for gas prices in the markets last month to avoid the kind of dramatic price spikes seen in the summer.

The last proposal prepared by the Czech Republic to achieve reconciliation among the member states was found insufficient by 12 EU nations.

Biggest cross-border investigation into tax evasion across Europe

Meanwhile, a total of 24 people were arrested in Portugal, Italy and France as part of an investigation carried out by 14 EU member states into a €2.2 billion ($2.3 billion) value- added tax (VAT) fraud scheme.

"Europol has been actively supporting the European Public Prosecutor’s Office (EPPO) in its investigation into the biggest cross-border VAT fraud scheme uncovered to date in the EU, worth an estimated EUR2.2 billion," the European Union Agency for Law Enforcement Cooperation (Europol) said in a statement.

"The case started in April 2021 after the Portuguese Tax Authority in Coimbra started looking into a company selling mobile phones, tablets, earphones and other electronic devices on suspicion of VAT fraud," it added.

In cooperation with law enforcement agencies in 14 EU countries and with the support of Europol, the EPPO in late November carried out "simultaneous investigative measures in relation to a complex VAT fraud scheme based on the sale of popular electronic goods.”

As part of the operations, 312 houses were searched, while a total of 24 people were arrested in Portugal, Italy and France.

Additionally, a total of 529 bank accounts were frozen, while 81 real estate properties, 31 luxury cars, over €2.5 million in cash, a Kalashnikov rifle and AirPods were seized, with the total value of the seizures worth €67 million.