Energy Crisis

Europe races to respond as gas prices surge

Prices surged more than 30 per cent today as traders reacted to Russia’s decision on Friday to keep its main gas pipeline shut indefinitely

EU leaders are planning to impose a price cap on lower-cost energy producers and ask member states to implement compensation schemes to encourage industrial users and households to reduce electricity consumption. Picture: Getty

Europe is racing to avert an energy catastrophe this winter that is threatening to turn into an economic and financial crisis, too.

Gas prices surged more than 30 per cent today as traders reacted to Russia’s decision on Friday to keep its main gas pipeline shut indefinitely. The euro also slid. Policy makers are now grappling with how to curb demand dramatically, and also prevent wild market swings spilling into broader financial disruption.

Sweden and ...