V4 countries want to use EU funds to support industry, Czechia prepares price cap

Bratislava, 19 October (CTK correspondent) – The Visegrad Four (V4—Czechia, Hungary, Poland and Slovakia) are asking the EU for a temporary exemption to allow them to use EU funds to support industry amid high energy prices. Slovak Minister of Economy Denisa Saková said this after a meeting between V4 energy ministers and European Commissioner for Energy Dan Jørgensen. According to Czech Minister of Industry and Trade Karel Havlíček, Czechia is prepared to introduce a cap on electricity prices at the producer level, along with other measures, if energy prices rise.

"European industry is facing high energy prices. These prices are several times higher than in the United States or Asia. If we want the European market to be competitive, we must ensure affordable prices for oil, gas and electricity," Saková said.

According to Havlíček, money from the so-called cohesion funds or the Modernisation Fund could be used to support industry.

"If energy and electricity prices rise, Czechia is prepared to respond by setting a maximum price at the producer level and supplementing this with a cap at the trader level, or possibly a further reduction in the regulated component," Havlíček said.

The minister said that if the situation on the exchanges does not change, high market electricity prices could feed through to prices for consumers and businesses next year. "It must not happen that the Czech Republic has higher, or significantly higher, prices than neighbouring countries," he added.

In September, the Czech government decided that the state would once again cover all charges for supported energy sources next year. The measure is intended to lower electricity prices for consumers. Czechia has also reduced the excise duty on diesel and capped fuel traders’ margins.

European Commissioner Jørgensen said the EU must reduce its dependence on the global energy market. In his view, Europe is better prepared in this regard than it was when Russia launched its military invasion of Ukraine in February 2022. In response to Moscow’s military aggression against Kyiv, the EU began restricting imports of Russian energy and approved a gradual phase-out of Russian natural gas imports.

Polish Energy Minister Miłosz Motyka highlighted the need to ensure the competitiveness of European industry. Otherwise, he said, the EU would be dependent on imports of goods.