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I've been following this story a bit and here's what I've noticed: 1. The causes seem to vary depending on who you ask. There seems to be a combination of CO2 taxes going up, a hard winter last year that diminished the strategic reserves, incompetent (corrupt?) gov't institutions that didn't replenish them in summer this year, combined with a general trend of relying more on gas and less on coal (and nuclear to some extent). 2. The EU came down with a heavy hand on coal producing countries... which does make sense, climate change is an issue. However, this is going to disproportionately hit the poorer countries in the block, those that still relied on antiquated coal burning power plants. Germany has Nord Stream + some investment in renewables, so they don't care much, France is mostly nuclear, so again, they don't care, Italy and Spain are warmer countries that could get fine through winter. Poland, Romania, Bulgaria, Slovakia etc. where coal plants were closed will be hit the worst by this. 3. The EU doesn't negotiate as a block on gas prices. Each country deals with Russia individually – e.g. Nord Stream being built between Germany and Russia. That also means that the smaller countries are at the biggest disadvantage, or are reliant on either Germany's or Russia's benevolence in dictating gas prices. |