Pioneer Columnist 24

There are several factors that are conditioning the price of oil in recent days. The movements of the central banks depress the market, which affect the drop in global demand forecasts and, therefore, sink the price of crude oil, which has come to quote at levels not seen since January -before the Russian invasion from Ukraine-. A price that is not attractive for the Organization of Petroleum Exporting Countries and its associated partners (with Russia to its credit) as they have already stated on previous occasions.

On October 5, the crude cartel meets again with the Brent barrel, a benchmark in Europe, bouncing 6.5% from the 84 dollars that it drilled on September 27, although it remains below 90 dollars. And it is not ruled out that OPEC + announces a substantial cut in its production at this meeting.

Already in the previous meeting, the cartel changed its roadmap from a slow but progressive increase in crude oil pumped -in line with the recovery after the coronavirus pandemic- to the slight cut announced in early September (of 100,000 barrels per day during September). . A modest but symbolic cut that shows that the organization is willing to further cut black gold production if the price of oil does not recover or demand continues to drop.

In a survey conducted by Bloomberg of 16 operators, all but one agree that OPEC+ will cut production in October. And firms like UBS or JP Morgan dare to forecast a cut of half a million barrels per day – compared to the 400,000 that have been increasing every monthuntil last August. Moreover, sources included in the same study assure that Russia would have asked its partners to increase the cut to one million barrels.

The country has benefited to date from the context of high prices, despite the fact that the crude oil sold to the rest of the Western countries has decreased in the year due to the sanctions imposed. And it is that Putin seeks to squeeze the price of his crude oil before the total European veto becomes effective at the end of this year and Russia has to find another partner to buy oil from him. In fact, on Tuesday the Ecofin meets where the European Union economy ministers will address precisely the energy situation in the common area and will assess the repercussions of the war in Ukraine.

At the moment, the market is already taking into account the rise in OPEC+ and even so, the consensus expects Brent to close the last quarter of the year at 85 dollars , with the average for 2022 below 100 per barrel taking into account the level of inventories in the US and the strength of the dollar against the rest of world currencies and as a favorite haven asset for investors.

Keys to central banks
The coming week will not be loaded with central bank decisions like the second half of September. Only the Fed of New Zealand will review interest rates in the country, which is presumed to rise to 3.5%. However, the European Central Bank will publish its minutes of the last meeting on Thursday, in which an increase of 75 basis points was announced in a context in which inflation in the eurozone climbed to 10% in September.

In addition, manufacturing production and sales data will be published both in Europe and in the United Kingdom and the United States. Clues that can guide central banks to what extent their rate hikes are holding back the economy as it struggles to contain prices. Another data that is expected in the United States will be the unemployment rate for September in the country, while in China they will celebrate throughout the week -the Golden Week- for the anniversary of the formation of the People’s Republic of China.

The microchip maker has announced a notable decline in demand for semiconductors, and as a result has cut its revenue forecasts and also its capital investment. Its action, heavily punished this year, has a potential of 40% . | All about the Tressis Cartera Eco30 fund , advised by elEconomista .

Can Europe be autonomous? It depends for energy on Russia, Saudi Arabia, Iran or Algeria, and now more and more on the United States. It also needs Asian and North American suppliers of electronic components. “[Vladímir Putin] invaded [Ukraine] and left Europe in the hands of the US . A criminal invasion, yes, but also absolute stupidity, strengthening the power of the US,” said the linguist and philosopher Noam Chomsky a few days ago on Cadena be .

The words of the federalist Altiero Spinelli still resonate when he said, in 1947, that “if the Europeans cannot seize the opportunity [to create a union], the United States will be increasingly tempted to pass from the liberal alternative to that of imperialism “.

To the pressure from Washington is now added that of Beijing. “There is a real danger that Europeans will be caught in the middle of Sino-American competition ,” political scientist Jonathan Hackenbroich, linked to the European Council on Foreign Relations, wrote in 2020. “ European sovereignty must mean being able to decide for ourselves about our interests and negotiate effectively within an interdependent system through credible countermeasures against hostile threats and actions,” the expert said.

microchip dependency
The European Union wants to increase the production of semiconductors in Europe and for it to account for 20% of the world share in 2030. In the remaining 80%, there are producers such as Micron Technology : the largest manufacturer of data storage memories in the US.

The tech company this week gave a weak forecast for the current quarter (the first of its 2023 fiscal year): $2 billion less in sales than analysts estimated; “renewing concerns that demand for personal computers and smartphones is falling,” reported Bloomberg .

Inflation and recession fears — plus a post-pandemic return to the office — have slowed device purchases, leaving memory buyers with unused stockpiles of chips . As part of its response to lower demand, Micron will cut capital spending by 30% in its fiscal year 2023, until inventories normalize. However, they expect conditions to improve from May.

After earning €9 billion in fiscal 2022, Micron’s net profit will fall 60% in fiscal 2023 to €3.6 billion. In terms of revenue, after the historical figure of 2022, a decrease of 20% is expected in 2023 to 25,300 million.

Micron stock, which receives a buy recommendation, has lost 45% since January and has a 40% upside potential , according to the market consensus collected by FactSet, with which it could reach 70 dollars in 12 months. Thus, the price/earnings ratio of the US company is 6 times in 2022 and 13 times in 2023.

Nanta creates the chair of Precision Livestock with the University of Zaragoza. Both entities have signed a collaboration agreement to promote training and research in the field of livestock.

These two are the main objectives of the newly created Nanta Precision Livestock Chair , which has been launched by Nanta, a leading company in animal nutrition on the Iberian Peninsula, and the University of Zaragoza.

The purpose of the chair is to create a space for learning and developing research projects generated in cooperation between the university and the company.

In this way, the organization of training activities such as conferences, seminars, student internships and visits to facilities is contemplated, as well as the development of research projects in nutrition and digitization, doctoral theses and final degree projects, as well as the possible hiring staff to address all these actions.

This academic-business collaboration will allow progress in the field of livestock through knowledge and research thanks to the collaboration between both entities. In addition, Nanta reinforces its commitment to innovation, efficiency and quality, as well as its commitment to future growth and development.

The agreement for the creation of the chair was signed on September 23 between the University of Zaragoza, with Gloria Cuenca, vice-rector for Technological Transfer and Innovation, as representative, and the company Nanta, with the presence of its general manager, Pedro Cordero.

The Nanta Precision Livestock Chair will have Delia Lacasta, professor of the Department of Animal Pathology of the Faculty of Veterinary Medicine of the University of Zaragoza, as director, and the participation of José María Bello, head of sheep and goat products at Nanta.

In these times of crisis we get into the trunk of saving techniques and among those that top the lists we find Japanese accounting methods . Although they are old methods and that we may believe are outdated, they gain strength when it comes to tightening the portfolios and they are at zero cost. In this way, the bet is to apply the Kakeibo method , a finance system created in 1094.

The concept of cost control that Kakeibo has is a small accounting and finance book such as the one used by our grandmothers to put the household money in order.

The scene is somewhat outdated, however, the method remains valid as digital applications have taken the model and executed it to make life easier for users looking for any way to make ends meet.

Spanish fear for not saving
In Spain, almost 60% of citizens fear that they will not have enough savings to support themselves once they retire. That is why saving represents a solution for many of us, but at the same time it is an almost impossible goal to achieve with so many expenses and unforeseen expenses to pay each month.

Kakebo has an attractive approach that allows people to manually record all expenses in color coded categories. At the end of each month, the total spend is calculated and analyzed using animated characters. The book also asks questions and provides tips designed to help readers reach their financial goals.

7 steps to save
These are the seven steps you must follow according to Kakeibo; a model of savings accounts with which you will surely achieve results.

1. Order your fixed monthly income and expenses. The first thing you should do is write down the total of your income and subtract the fixed expenses, such as:

– Pay the mortgage or rent

– Car Letter

– Public services (electricity, water, internet, telephone, etc.)

2. Set a savings goal. It is essential that this objective be realistic, a saving that is within your possibilities and that you can really fulfill it.

3. Schedule how you’re going to do it. The worst thing you can do is improvise. To achieve the goal you have set for yourself, it is important that you meditate on how you can achieve your goal. For example, take food to work, go to the movies only one weekend.

4. Organize your expenses by categories. This section suggests that you should define what you are spending your money on through four categories: survival, leisure, culture/education and extras.

5. Track your expenses weekly. This not only allows us to know how much money we spend per week, but also allows us to know the categories in which we spend the most.

6. Analyze the results. If you follow all these steps, each month you will be able to study on which days and weeks you spend the most money and whether or not you achieved your goals.

7. Set higher goals. Once you start to get going with these simple steps, you can gradually increase the income of your monthly goal. In addition, as the months go by you will begin to feel proud of yourself and you will think twice about indulging in whims.

The European Stability Mechanism (ESM), more commonly known as the European rescue fund , has run out of candidates to replace the current managing director, the German Klaus Regling . After several failures during the last meetings of the European finance ministers, the Portuguese Joao Leao and the Luxembourger Pierre Gramegna have withdrawn their candidacies and have left the race deserted, as they jointly communicated yesterday.

The process to replace Regling, who has been in charge of the institution since it was born, is complicated because his mandate expires on October 7 . In the last Eurogroup meetings neither Gramegna nor Leao, both former ministers, had obtained the necessary support. On the one hand, Germany is opposed to a country that has received credits from the MEDE directing the body, as is the case with Portugal. On the other hand, Italy, which initially presented its own candidate, is opposed to Gramegna’s candidacy.

80% support
Any candidate needs 80% support in a vote that is weighted according to the capital that each country has contributed to the ESM. That is why the vote of France or Germany is equivalent to 20% respectively, which gives them veto power. Until now, France would have supported Leao, but Germany supported Gramegna, which has rocked the election and forced the president of the Eurogroup, Pascal Donohoe, to start from scratch.

Until 7 October
According to European sources, both candidates withdrew from the race upon verifying that they did not have sufficient support to reach this 80% and now Donohoe is starting the consultation process again to identify a new candidate who does have a chance of reaching this qualified majority. . The calendar, for now, is maintained with the expectation of finding a replacement for Regling before October 7, although it seems complicated considering that the process for his replacement began in March, with four candidates: the Italian Marco Buti and the Dutch Menno Snel in addition to the two who have retired this week.

The board of governors of the MEDE, formed by the finance ministers who meet in the Eurogroup, is the one who formally makes the decision to appoint its managing director.

Regling was chosen in 2021 to lead the ESM after having led the European Financial Stability Fund (EFSF), a temporary mechanism for the euro zone, since its creation. Since then, the role of the Mede has been less clear, marked by the stigma of the financial crisis and after the European Union agreed to issue common debt to weather the crisis caused by the pandemic, which left the line of credits that the institution specially enabled for the pandemic and is still available until the end of 2022.

To date, the Mede has activated rescue programs for Cyprus, Greece, Portugal and Ireland . In the case of Spain , it was used for the recapitalization of its banking sector in 2012. With all this, it has disbursed more than 260,000 million euros with these programs that grant cheap credit to the countries of the euro zone.

Finally, the extraordinary tax on energy companies that Spain has designed “will be adjusted” to the figure adopted in Europe , which will imply that instead of taxing income, the profits of these companies will be taxed. In this way, the aspect that had generated the most controversy among economists, who claimed that taxing income was economic nonsense, is resolved.

This has been advanced by the Minister of Finance and Public Function, María Jesús Montero, during an interview in statements to Antena 3 in which she highlighted that Spain has been at the forefront in this matter as it is the first country that raised this tribute to energy companies and banking : “Europe has come behind”, he underlined.

The minister has insisted that, when the Commission’s discussion ends, in which Spain is also participating, the Spanish tax will be adjusted to the figure decided in Brussels. The debate in the European capital is quite advanced. Community authorities plan to establish a tax on 33% of profits (which are considered as extraordinary or dropped from the sky).

In the case of the tax that the Government of Spain intended to impose, the rate was going to fall on income (instead of profits), which could generate certain nonsense and inefficiencies that greatly harm companies that saw their income increase without this was reflected in higher profits.

Ursula von der Leyen, president of the European Commission, assured this Wednesday that her “proposal will raise more than 140,000 million eurosthat will allow the Member States to cushion the blow directly. And because we are in the midst of a fossil fuel crisis, the fossil fuel industry also has a special obligation. Big oil, gas and coal companies are also making huge profits. And for that they have to pay a fair share: they have to make a contribution against the crisis.

These are all emergency and temporary measures that we are working on, including the price cap discussion. We need to continue working to reduce gas prices. We have to guarantee security of supply and, at the same time, our competitiveness on a global scale,” the European president said.

The gas VAT reduction will also apply to collective boilers
In the same intervention, Montero has also confirmed that the reduction in VAT on gas from 21% to 5% announced by the Government will also benefit the communities of owners that have collective boilers and will thus be contemplated in the Contingency Plan.

“The Government had identified this situation so that there would be no problems and they could also benefit from the lowering of the bill”, said the minister to specify that the technical mechanism by which this reduction will be applied to the communities of affected owners is being studied.

Although the correlation between oil and fuel prices is far from perfect (margins, taxes, labor costs… prevent a perfect transmission), the truth is that in the end (with some lag) a fall in the price of oil It is usually transferred, at least in part, to the final price of gasoline and diesel. However, in recent weeks an atypical phenomenon has been observed: the fall in oil is being transferred to gasoline, but not to diesel or diesel , which is still close to two euros per liter. What is happening in the market? Why today does a liter of diesel cost up to 20 cents more than gasoline?

The latest data published by the European Commission and specialized pages reveal that diesel is distancing itself from gasoline. In the case of Spain, the liter of diesel appears this Thursday in the area of ​​1.93 euros per liter, while in the case of 95 gasoline it is 1.73 euros per liter, an unprecedented gap in Spain. Gasoline has fallen in price with the fall in oil, while diesel has barely moved, what’s more, in recent weeks its price has rebounded.

The International Energy Agency (IEA) has solved some of this mystery in its monthly report on the oil market. The IEA argues that there is no more capacity in the refineries to produce diesel, which has led this market to an almost permanent deficit (more diesel is consumed in the world than is produced).

The information published by the agency is somewhat worrying, since the situation could worsen in the coming months as sanctions on oil and derivatives from Russia are strictly enforced. Without the production of Russian refineries, advanced countries could suffer a real shortage of diesel with the consequent rise in the price of this fuel.

Russia is vital in the fuel market. Moscow is the world’s largest exporter of derived products (it has a large network of refineries). According to the IEA, Russia would export under normal conditions some 2.85 million barrels per day (mb/d) of petroleum products, of which 1.1 mb/d are diesel, 650,000 fuel oil, 500,000 naphtha and 280,000 gasoline. vacuum gas oil (VGO). Gasoline, LPG, jet fuel and petroleum coke account for some 350,000 barrels per day.

More oil will not be synonymous with cheaper diesel
The IEA explained that the market is entering a phase of excess oil supply (a million more barrels per day are being produced than is consumed), which is putting downward pressure on the price of crude oil: a barrel of Brent has fallen by more than $30 in recent months. However, this drop in crude oil is not being transferred in the same way to fuels, especially diesel and kerosene used by planes. While refineries are being able to process all the gasoline that is needed, the same is not happening with diesel.

For this reason, the agency “expects that the derivatives markets, especially diesel, will remain in deficit due to the lack of refining capacity outside of China. The world diesel markets are very tight due to solid demand, together with some lower Chinese export prices, which have drastically reduced their sales abroad.

A barrel of diesel costs $40 more than a barrel of oil.
Today, only China has idle capacity in the refineries that have machinery and infrastructure specially dedicated to the diesel refining process, which is putting this market in a very tense situation that is reflected in the crack spread (difference between the barrel of diesel and oil) of diesel, which has shot up to 40 dollars, while the crack spread of gasoline has gradually returned to normal areas after having soared during part of the summer and spring.

The differential with gasoline is normalized
The raw materials consultant JLC ​​expects Chinese diesel exports in 2022 to be reduced by 74% compared to 2021, to 4.5 million tons, while gasoline exports will fall somewhat less: 40% to 9 million. of tons. These quotas that China has imposed as part of its plan to reduce emissions and preserve the environment are creating a problem for the rest of the world.

In addition, the West has not built refineries for decades , while investment in active plants has been scarce, which generates limits on the production of derivatives. On the other hand, experts assure that it is not easy for these plants to increase diesel production to the detriment of gasoline production (now it is less scarce) because the necessary processes and inputs are different.

The worst may be yet to come
Until now, the EU has largely kept Russian diesel import volumes at around 600,000 barrels per day, but from next February these volumes will need to be replaced by other sources. Europe’s salvation is expected to come from three major refinery projects in Kuwait, Nigeria and Mexico due to come on stream by the end of 2023, which would see diesel output rise.

On the other hand, the IEA believes that “the proposed price cap mechanism should also work to ensure that the overall supply of diesel for the global market is met and that European importers can start buying flows from the US, Middle East and India. Otherwise, and assuming Russia is unable to ship diesel in significant quantities outside the price cap, European, Latin American and African importers could be forced to compete for less diesel.”

In addition, diesel inventories in the US are currently at a critically low level, they say from Reuters, which will not help to solve the shortage of this distillate in advanced countries. Experts say that this shortage in the US will maintain upward pressure on diesel refining prices and margins. Distillate stocks are at their lowest level for this time of year since 1996.

To prevent the diesel shortage from becoming more serious, it is vital that the refineries under construction in Kuwait, Nigeria and Mexico come to fruition. Still, they won’t be running at full capacity until the end of 2023, while the full embargo on Russian crude and derivatives goes into effect later this year. Unless some unexpected event occurs, diesel could continue to be scarce and, therefore, maintain a relatively high price.

The remuneration of the domes of the Ibex 35 has been the star topic in the first season of post-pandemic meetings . Gone are those years when these issues tiptoed through the annual assemblies. Now, it is the issue that shareholders watch the most, and the one that generates the most controversy .

And the data shows that every year the rejection received by the remuneration of the senior positions of the Spanish listed companies is greater. Visit elEconomista Sustainable investment and ESG, the green portal of ‘elEconomista.es’.

In the 2022 meeting season, which ended this summer, average support for remuneration policies rose to 85.7% , according to data compiled by Georgeson for the Esade Center for Corporate Governance. It may seem like a high percentage, but the truth is that it has not stopped decreasing in the last five years (in 2018 it was 91%), according to the same source.

The other major remuneration issue that is voted on every year at these meetings is the Annual Report on Directors’ Remuneration, which in 2022 received an average vote in favor of 85.5% (in 2018, it was 88.5%).

A good handful of large Ibex listed companies received resounding “noes” in the area of ​​remuneration. The most impressive went to Telefónica , with 43% of votes against its Annual Remuneration Report. The Spanish proxy advisor Corporance Asesores de Voto recommended this negative vote, due to the “high level of fixed remuneration […], the high annual contributions to pension plans and the extraordinary bonus paid to executive directors during the year “. Seven Ibex 35 majors receive more than 10% of votes against their remuneration at the meeting .

Double-digit rejections at board
The Sabadell Remuneration Report , for its part, received an opposition of over 38%. The proxies agglutinated in the Proxinvest alliance lamented the existence of what is called the golden parachute , a shield clause that was activated with the departure of the former CEO, Jaime Guardiola, who received 23.9 million euros, 118% of his base salary. Another striking case is that of Iberdrola , which on June 17 reaped a historic rejection of 24.3% of its Annual Remuneration Report (in 2017, the opposition was 3.3%).

Although these votes are, in the vast majority of cases, consultative , the result they produce is usually taken into account by the companies. Juan Prieto, founder of Corporance, explains: “The law establishes that if the rejection exceeds 50%, the company must present a new plan,” he says, adding that “a rejection of 10% is already a warning; and from the 15th % and, above all, 20%, it is considered that the company must either present a new plan, or modify it”. Also read: Who Lobbies Whom at ESG.

In this sense, from Georgeson they warn that investors are very attentive to whether or not the company takes into account their votes against . “Companies that obtained high dissidence in 2021 and have made an effort to respond to the market, executing coherent action plans, with tangible measures and making adequate disclosure , have obtained the support of investors in this 2022 meeting.”

This is the case of Amadeus : in the 2021 meeting, the remuneration of its directors received a “no” of more than 61%, and in the 2022 meeting it managed to carry it outwith a vote in favor of 91% after modifying its policies (it eliminated the right to use discretion with regard to the remuneration of the board, that is, the power to freely decide on increases in remuneration).

Investors are very sensitive to the lack of alignment between the variables that the executive directors perceive and the behavior of the value
In 2022, the greatest scrutiny has focused on aspects that have been observed for years. Among these recurring issues are the penalties for a misalignment in the pay for performance (retribution for performance, or for performance); the lack of clear disclosure of the metrics of the incentives, or payments for termination of contracts , considered, in many cases, excessive.

Investors are also very sensitive to the misalignment between the variables perceived by executive directors and the behavior of stock prices. This is because, on occasions, these bonuses are distributed precisely in periods in which the share price has plummeted , or in which the company has not been able to pay dividends.

Beyond these usual issues, according to Claudia Morante, head of Corporate Governance at Georgeson, in the 2022 season “more novel issues” have also emerged. The first of them, “the lack of inclusion, or assigning a reasonable weight, to ESG metrics (environmental, social and good governance) in the annual and multi-annual incentives”, she explains.

The Commissioner for Energy, Kadri Simson , will travel to Algeria on October 10 to assess the gas supply situation in Europe after having visited Egypt as well as Azerbaijan.

The visit takes place in the middle of the negotiation process that Naturgy is maintaining on the prices that Spain will have to pay for Algerian gas and after the entry of gas from Algeria to Italy has been reinforced.

Simson’s intention is to press the Algerian government on the possibility of achieving better prices for the purchase of natural gas through the Joint Purchase Platform that the European Commission is setting up.

Meanwhile, the agreement between Sonatrach and Naturgy ended last year and the gas company expects to face a price increase in the coming months that it will have to apply retroactively to Spanish customers.

The Vice President and Minister of Ecological Transition, Teresa Ribera, in her speech before the Council, defended the use of ” European energy diplomacy ” to try to reinforce the purchase of gas but avoided making allusions to the Commissioner’s next trip.

Ribera explained to the European Council that the situation in Spain is centered more on a concern for prices than for resource availability.

“Spain is at 84% capacity and we are working to facilitate a reduction in consumption with a contingency plan in which all energies will be considered,” said Ribera.

Portugal has approved a water reserve to guarantee its electricity supply
The vice president explained that her government has already adopted measures this summer such as regulating temperatures and lighting in empty buildings. Likewise, he reiterated the need to include price limitations and entered fully into the MidCat debate by openly requesting that the infrastructures be reinforced in order to be prepared for the 2023/2024 winter. He asked the High Level Group for interconnections to draw up a map of the necessary interconnections for the year 2023-2024 both in terms of electricity and hydrogen gas.

Ribera also assured, in line with what was indicated by the president of Naturgy, Francisco Reynés at the VII Energy Forum of elEconomista.es, that the reference of the TTF -the Dutch market- is no longer valid and considers it important to articulate alternatives for the fixing of prices.

Spain, indicated the Spanish representative, is working on support measures and facilitating the use of transport vessels from a network to work between Spain and Italy or the El Musel logistics center that will come into operation next winter.

Croatia has approved a package of measures of 2,800 million to cap prices
Throughout the session, the different member countries explained the measures they have been adopting to face winter. Portugal, for example, has approved a water reserve to guarantee electricity supply as well as forcing marketers to have contracted gas reserves.

Denmark has adopted a plan to reduce gas consumption. Croatia has approved a package of measures of 2,800 million by which it sets a price cap for electricity for households, SMEs and large companies with a duration of six months. The Government has made the decision to double the capacity of the LNG terminal and increase its gas pipelines. For forecast will invest 180 million.

Italy has allocated 50,000 million to mitigate price increases
Malta only uses liquefied natural gas to produce electricity. They depend on the interconnection with Italy but it is promoting savings in the consumption of public buildings, as well as energy audits.

Italy has allocated 50,000 million to alleviate price increases. It hopes to have two new regasification plants in 2024 and is now negotiating an energy saving plan with the industry for mid-October. The country has accelerated the installation of renewables with 9.3 GW of requests and they expect to put 8 GW into operation.

Luxembourg urged to eliminate the waste of electricity with activities such as crypto mining and welcomed the supply of gas from Belgium and the Netherlands.

France will also have a floating regasification plant in 2024 in Le Havre. His minister explained that she has accelerated the tests to import electricity from Germany and has a plan that facilitates the disconnection of both gas and electricity installations in cases where it may be necessary.

Germany has approved the largest renewables package in its history but also insists that it has reduced electricity consumption by 21%, which has also led to the loss of industrial production.

Romania has launched a plan of 1,000 million for the renovation of plants. He asks that the construction of the correct vertical Trans-Baltic gas pipeline be accelerated and demanded greater budget support.

Hungary asked Romania to speed up the approval of the interconnection between the two countries.
Finland considers that it may be necessary to limit the supply of electricity. The country trusts in the operation of the Olkiluoto nuclear power plant and a regasification plant. Hungary asked Romania to speed up the approval of the interconnection between the two countries.

Latvia has approved a support package for households to offset heating and a mechanism for energy-intensive businesses. The country has reduced gas consumption by 33%.