Kamenický at Ecofin: EU Negotiations with the USA Should Prioritize Member States’ Interests

The Minister cautioned his colleagues in Brussels against allowing the EU to become overly dependent again. He referred to the past reliance on Russian gas, which constituted 40% of EU imports before the Ukraine conflict, and noted that some member states now secure around 90% of their LNG from the US, having previously sourced over 50% from Russia.

“Both Europe and Slovakia, a leader in the automotive sector, require affordable energy. To achieve this, we must not depend solely on Russia or the US; the ideal scenario is one where we have diverse energy sources, even though that is challenging,” he pointed out. He added that alternative suppliers such as Algeria and Norway have already established contracts, which impacts Germany’s increased imports of American LNG.

Kamenický underscored the necessity of affordable energy not just for industries but also for households and citizens, affirming that the Slovak government will persist in its efforts to keep energy prices stable for the populace.

The European Commission, along with Slovak European Commissioner Maroš Šefčovič, who oversees trade and economic security, will lead negotiations with the US and address any potential trade disputes. However, successful negotiations will require a solid commitment to unity among EU member states. Kamenický stressed that it will be crucial for the Commission’s discussions to align with the interests of member countries.

“If this alignment is achieved, unity will follow. Nevertheless, I have concerns regarding reports suggesting that the US might tie the avoidance of tariffs to a definitive commitment from Europeans to purchase LNG,” he mentioned.

Kamenický highlighted his interest in understanding the pricing of gas in such scenarios. He pointed out that if the US domestic market pays $10 per megawatt-hour for gas while Europe buys it for $50, the EU’s competitiveness is at risk. “I noted that energy costs directly affect product and service pricing; if our production costs are this high, our products will struggle to compete,” he stated. (January 21)

“Europe, as well as Slovakia, which is a leader in the automotive industry, need cheap energy. To achieve this, we cannot be dependent on either Russia or the USA; the ideal state is when we have the possibility to diversify, which is also not easy.” Ladislav Kamenický