Polish Prime Minister accuses Germany of violating EU market principles

Polish Prime Minister Mateusz Morawiecki has criticized Germany for its decision to freeze gas prices in the country. Mr. Morawiecki accused Germany of violating the principles of the single market of the European Union (EU). He also proposed to suspend the system of quotas for harmful emissions in the EU for a year or two.

The Polish prime minister raised this topic the day before on the sidelines of the informal EU summit that began in Prague. According to him, the German authorities decided to allocate €200 billion to support their economy, “without looking back at anyone.” He called this amount gigantic. Mateusz Morawiecki noted that Germany had previously warned other European countries against such measures.

“During the last financial crisis and also the last crisis related to COVID, Germany liked to teach other states that you can’t use your own financial mechanisms, that this leads to a ballooning budget deficit, increases debt … The Italians and the French could not do this, the Poles could not but they can. If this is an equal and fair approach of the norms of the single European market, then I don’t understand something here,” the Prime Minister of Poland said (quoted by RIA Novosti).

He added that this issue will be discussed during the second day of the EU summit today, October 7th. According to Mr. Morawiecki, “there will be an intense discussion.” “I have spoken to several European leaders and everyone is critical of this German proposal for their consumers. Either we have a single market, and we apply the same rules, or we don’t have it, this single market,” he is convinced. Who else is dissatisfied with the actions of Germany, the prime minister did not specify.

In addition, Mateusz Morawiecki considers it necessary to suspend the ETS system (the EU carbon trading system) for at least a year or two. “We don’t have to ask Norway, the USA, Qatar, or even more so Russia for this,” the Polish prime minister is sure (quoted from TASS). However, he acknowledged that this idea is not yet supported by many countries.

In September the German government presented a package of measures worth €65 billion to reduce inflation in the country. In the same month, German Chancellor Olaf Scholz made public plan to support the economy during the crisis. One of its key points will be the freezing of electricity and gas prices in the country. In addition, the government will reduce the value-added tax on gas sales from 19% to 7% by spring 2024. Mr. Scholz does not expect Russian gas supplies to resume “in the foreseeable future” after the explosions on the Nord Stream and Nord Stream 2 gas pipelines.

Read more about the state of emergency in the material “Kommersant” “Accusations put on stream”.

Laura Keffer