EU seeks emergency energy while banning other countries from doing the same – Mich Naqqash

Image from the tweet below, the caption is mine.

Reuters reports EU Commission seeks emergency powers over supply crisis with threat of fines.

The European Commission is seeking emergency powers to force companies to manufacture key products and stockpile goods in the event of a crisis or face fines, according to an EU document seen by Reuters on Friday..

The proposed single market emergency instrument, due to be presented on September 13, comes in response to supply bottlenecks caused by the COVID-19 pandemic and Russia’s invasion of Ukraine. Russia describes its actions in Ukraine as a “special military operation.”

It also aims to deter foreign countries with similar powers from taking such action without informing the 27-nation bloc.

The move is opposed by some EU countries concerned about a power grab by the EU executive, while critics say it betrays Chinese-style state capitalism.

The Commission will need to discuss details with EU countries and EU lawmakers before the proposal becomes law in a process that will take months.

If passed, the document said, the Commission could ask EU countries to reorganize supply chains and increase supplies of crisis-related goods as quickly as possible.

Businesses providing incorrect or misleading information can face fines of up to €300,000 (US$300,540) while companies that do not comply with the key product prioritization order can face daily periodic fines of 1.5% of average daily turnover. .