European solidarity of the Piffero: how Macron’s energy policy puts in difficulty

The German Welt poses a big problem: the French energy price policy will get its neighbors, especially Germany, into trouble, by blowing up the prices applied in that country, all in the face of European solidarity.

The problem is simple: France is dealing with a problem and a choice of internal politics:

• half of France's 56 nuclear power plants, which supply most of the country's energy, are down for ordinary or extraordinary maintenance. This means that France, a traditional energy exporter, is in balance or an energy importer;
• Macron has decided not to raise energy prices by more than 4%. So while bills elsewhere double or triple, in France they increase slightly. This has helped to contain inflation, which is in fact more under control, but has also sent the publicly owned company EDF into a loss for thousands of euros;

If Macron maintains this policy, EDF will be forced, next winter, to buy energy, probably from Germany and Italy. Since prices do not rise particularly in France, private individuals will not have an incentive to reduce consumption, except in the event of cuts and blackouts. So we will have the following situation:

• the French will consume electricity normally, paying just over the 2021 price;
• EDF will have to buy electricity externally at market prices, accumulating losses, or in any case it will not have any to sell externally;
• in Germany, and in Italy, electricity will be more scarce, because it is sent to France. This energy shortage will lead to an increase in prices in Germany, which however will pass on to the users.

So Macron's policy will result in an increase in prices for German and Italian users, all in the face of European coordination. In practice, the French subsidy is paid, in part, by users from other countries. Then they talk to you about “European policies”, and about “Coordination”. A mockery.

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The article European Solidarity by Piffero: how Macron's energy policy puts in difficulty comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/solidarieta-europea-del-piffero-come-la-politica-energetica-di-macron-mette-in-difficolta/ on Wed, 17 Aug 2022 10:06:45 +0000.