Eurotopics.net

Despite rising inflation, the European Central Bank is leaving the key interest rate at zero percent. ECB chief Lagarde is convinced that the current inflation trend is temporary and driven by high energy prices, among other things. The ECB will also decide in December whether to stop its multi-billion bond-buying programme. How long can it maintain its accomodative monetary policy?

The European Court of Justice has imposed a record fine on Warsaw in the legal dispute between Poland and the EU. Poland must pay one million euros per day as long as the controversial disciplinary chamber - which according to the judges violates the separation of powers - is not abolished. Commentators see the EU with the upper hand and warn about further escalation.

Prime Minister António Costa's socialist minority government in Portugal is facing a crisis after a dispute over the 2022 budget. The Communists and the Left Bloc, which until now have supported the government, have voted against its draft budget. President Rebelo de Sousa had announced that he would dissolve parliament if the vote failed. Commentators harshly criticse the far left's stance.

The Republic of Moldova, which so far has been dependent on Russian gas but has been unable to reach an agreement with Moscow on terms for continued supplies, has now purchased a first "test portion" of natural gas in Poland, which will be delivered via Ukraine. Journalists believe this confrontation could have unexpected consequences.

Wholesale prices for natural gas have quadrupled within a year, and a meeting of EU energy ministers on Tuesday failed to produce a joint action plan to counter this inflationary trend. While Spain, Greece and others are demanding intervention in the markets, Germany, the Netherlands and the Baltic States want to wait and see first. Some commentators see the single market and EU energy policies as the core of the problem.