Abstract

The conflict in Ukraine is not the only root cause of the eu energy crisis. The increase in prices began in 2021, interrupting a long phase of falling prices culminated during the pandemic. This paper analyzes how global market dynamics and policy factors have intertwined in recent years leading to a condition of shortage and record-high prices. The paper shows that a condition of shortage was brought about by the increasing globalization of gas markets and is a primary cause of the current energy crisis. However, the eu energy policies are amplifying the crisis to some extent, as they are not conceived to face large-scale global changes. This is evident in the limited development of an eu external policy for energy security, and in the emphasis on domestic market liberalization. The paper shows that this gap originates in the eu governance, but also in the difficulty for policymakers to interpret fast global changes and propose timely responses.