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EU Seeks Emergency Power With a Block on Other Countries Doing the Same

The European Commission wins my hoot or the day award for a nonsensical idea simultaneously rife with hypocrisy.
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Image from Tweet below, caption mine.

Image from Tweet below, caption mine.

Reuters reports EU Commission Seeks Emergency Powers on Supply Crisis With Threats of Fines.

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

The proposed Single Market Emergency Instrument, set to be presented on Sept. 13, comes in response to supply bottlenecks caused by the COVID-19 pandemic and Russia's invasion of Ukraine. Russia calls its actions in Ukraine "a special military operation."

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

The move is contested by some EU countries worried about a power grab by the EU executive, while critics say it smacks of China-style state capitalism.

The Commission will need to thrash out details with EU countries and EU lawmakers before the proposal can become law in a process that will take months.

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

Businesses that provide incorrect or misleading information can face fines up to 300,000 euros ($300,540) while those that fail to comply with an order to prioritize key products could be hit with daily periodic penalty payments of 1.5% of the average daily turnover.

What a Hoot!

Emergency powers are for the EU only. Other countries would allegedly have to inform the EU first. 

Yeah right. 

The EC said it would not comment on leaked document, but what we are talking about is a war-time powers act without a war. 

Is this an item that required unanimous EU consent? 

If so, the proposal will never get off the ground. But if the treaty does allow for "emergency" rules, who knows what these nannycrats might do.

Daniel Lacalle had the correct reaction: "Be sacred, very scared."

At a minimum, the Euro will crash if this passes. 

Question of the Day

Russia just announced a few hours ago gas will be shut off until sanctions are lifted (FT), they are capping zero gas. 

Pain Mostly Self-Inflicted 

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Shortages are mostly self-inflicted. The US and EU launched economic warfare with Russia and faces an energy crisis as a result. 

And every time the EU steps up the pressure, Russia responds in kind. 

Please note Putin Retaliates With Natural Gas Shutdown After G7 Announces Oil Price Caps. But it's not just natural gas. 

Russia and Ukraine Exports

  • Russia and Ukraine are key exporters of C4F6 and neon gas. Ukraine produces about 25% of the neon used in global semiconductor production.
  • Russia produces about 12 percent of platinum and 40 percent of palladium used in automotive catalytic converters.
  • Russia produces 3.9 metric tons of aluminum (6% of world supply). Russia and Ukraine together account for about 10% of global steel exports, according to SteelMint.
  • Russia is the third-largest producer of petroleum after the U.S. and Saudi Arabia, exporting almost 5 million barrels a day of crude oil in 2020, according to the U.S. Energy Information Administration.
  • Russia produces about 12 percent of the world's oil and 17 percent of its natural gas, according to estimates from J.P. Morgan.
  • Russia and Ukraine account for about one third of global wheat exports.
  • Russia supplies about half of Airbus titanium needs, while a U.S. industry source said Russia provided a third of Boeing's requirements.
  • Caspar Rawles, chief data officer at specialist consultancy Benchmark Mineral Intelligence (BMI), said that while Russia accounts for 5% of global nickel production, it supplies about 20% of the world's high-grade nickel.

For discussion, please see US Sanction Policy Drives China Into Russia's Loving Arms

The global response to Russia has one huge beneficiary, China. 

If you think the EU will be out of the woods if they survive this winter and natural gas, then think again. Where will the EU get titanium and nickel?

The fact that the EU is proposing this action is admission the worries are not just about natural gas.

This post originated at MishTalk.Com.

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