Final Word from Monday, September 12, 2022

The same Jozef Síkela who stated in late Aug. that capping electricity rates is unimaginable because of the high cost now says that he and his EU energy colleagues are prepared to do "whatever it takes" to resolve the energy crisis. He told Czech TV on Fri. night that Europe will do anything, anything at all, to help households and businesses and to allay or prevent social fears, insolvencies and the conversion of the energy crisis into another deep crisis. One of the previous deep crises gave rise to the remark by ECB Pres. Mario Draghi: "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro." And the cost was indeed high. Now the Czech cabinet will apparently be deciding between three main possibilities: Síkela's "whatever it takes" promise of capped electricity prices that is slow and expensive for the state to enact; Finance Min. Zbyněk Stanjura's plan for capped energy margins that is somewhat less slow and less expensive; and Justice Min. Pavel Blažek's quick Czech solution of regulated prices and no compensation for anyone. The more European the solution, the more it will likely take. [ Czech Republic industry European Central Bank president Television quantitative easing ]