FT: A united Europe can end Russia’s energy stranglehold
Regardless of how the stand-off over Ukraine develops, one lesson is clear: excessive dependence on Russian energy makes Europe weak. And Russia does not sell its resources cheap – at least, not to everyone.
This, of course, is basic economics. A dominant supplier has the power to raise prices and reduce supply. The way to correct this market distortion is simple. Europe should confront Russia’s monopolistic position with a single European body charged with buying its gas.
Once this has been achieved, Europe should undertake the lengthier task of breaking up the Russian gas monopoly and restoring free market competition. True, this will require Europe’s governments to take a unified position. But such feats of co-ordination have been achieved before.
(The writer is prime minister of Poland)