Antonio Costa and Pedro Sanchez see the German chancellor as a strong ally in the difficult mission of persuading France to allow the construction of a new Iberian gas pipeline across the Pyrenees to supply gas (and later green hydrogen) to Germany and the rest of Europe.
“The three of us (Portugal, Spain and Germany) worked to ensure that France could once again show itself open to this solution,” the prime minister told reporters in Berlin after a meeting with the leaders of Germany and Spain. Governments The prime minister says this is “not a form of pressure” on the French president, but in practice it puts forward arguments and allies to force him to change his position.
“(France) definitely doesn’t want to be isolated in this overall position,” says Costa, referring to the European support for building additional links between the Iberian Peninsula and the remaining 27, especially at a time when there is consensus on the need to diversify gas and energy suppliers.
Lisbon and Madrid have been fighting for years to stop being an energy island. And if there were times when Emmanuel Macron, and before him François Hollande, showed openness to a new gas pipeline, then recently the French president has been very critical of the construction of the so-called MidCat across the Pyrenees. He last blew up the project last week at an informal summit in Prague.
France cites environmental concerns and questions the need for a new gas pipeline when the one currently in place with Spain is not being used at full capacity (which the Spanish government has already opposed). But there are also “economic interests” behind this strong position, including Paris’ desire to export more electricity (and gas) to the rest of Europe without competing with Iberia.
Costa “understands” these interests, but he hopes that, in turn, Macron will also understand that the current context has shown the need for “diversification” and that “the Iberian Peninsula is capable of producing renewable energy” and, in the future, it will also be able to produce and export green hydrogen. True, the construction of a new gas pipeline will take 5-8 years, and in the short term it does not solve the urgent problem of replacing Russian gas. But in the medium to long term, it could be a solution for Europe and a profitable investment for the two southern countries.
In the pressure game, he also reminds the French that “if it is not possible to connect France”, there is still the possibility of connecting through Italy. However, he also suggests that it “makes sense” to have a “connection through the Pyrenees”, which is also cheaper.
But without Paris’s blessing, there will be no MidCat, which means that Costa and Sanchez are left to insist on their arguments. Another socialist, the Chancellor of Germany, is counting on this. Olaf Scholz became a potential ally when Russia turned off the gas valve, showing that Germany’s bet on a major supplier was disastrous. However, the decision is not made in Berlin.
“Here in Berlin, nothing has been unlocked to deal with Paris,” said Costa, who already had a verbal meeting with Sanchez and Macron ahead of next week’s summit. “I don’t know if it’s in Brussels or Paris,” he says, but everything points to a meeting in the Belgian capital, on Wednesday or Thursday, before the start of the European Council, marked by another attempt to lower gas prices.
Costa hopes for joint gas purchases
Costa hopes this will lead to “effective solutions” at the leaders’ meeting and a joint decision to lower energy prices. The meeting in Prague a week ago served to exchange ideas and bring positions closer, but divisions remain among the 27 participants.
Portugal is one of 15 countries in favor of setting a maximum price for gas imports, along with Spain, France, Italy or Belgium. But Germany remains opposed, arguing that “fixing a price cap poses a supply risk” and could alienate suppliers.
The Prime Minister believes that joint purchases of gas can become a “point of consensus”. “If there is a joint purchase, in practice we can all contribute to getting the best price when buying gas from different suppliers.”
The heads of state and government of 27 countries meet on Thursday and Friday. But to make progress, the European Commission also needs to put concrete legislative proposals on the table, something it has been putting off in recent weeks. On Tuesday it will be known whether to propose a joint purchase of gas or the introduction of a maximum price for imports.