After several months of discussion, the European Union moved one step closer to establishing a cap on gas prices.
The EU has been fighting against an energy shock caused by Russia. National governments have taken action to curb gas prices.
Germany and a few other countries were wary of potential market repercussions from a cap on gas prices.
This always harbors the risk that the producers will sell their gas elsewhere, according to the Chancellor.
However, after negotiations with his European counterparts that dragged into the early hours of Friday morning, Scholz agreed to go ahead with the measure.
According to Alexander de Croo, Germany had legitimate concerns.
The heads of state looked to bridge their differences, according to De Croo. He said the step forward was a big one.
The 27 leaders were not expected to come together on a price cap.
The prime minister of Luxembourg said that there were a lot of taboos but that they were resolved during the summit.
He said that they gave homework to their energy ministers and that they were able to agree on a list of things to do.
In the coming weeks, European energy ministers and the European Commission will be working on the details of how a temporary price corridor will work.
More precise details are expected in the next two to three weeks.
The implementation could be very fast according to Belgium's de Croo.
The cap isn't expected to be in place until a second benchmark is established.
European natural gas prices are reflected via the Dutch title transfer facility. EU leaders agree that the benchmark no longer reflects the reality that most of them are receiving natural gas in the form of Liquefied Natural Gas, and so they plan to have a second benchmark in place by the first quarter of 2020.
Tensions with Russia have caused European gas prices to go up.
In late August, prices reached a peak of more than $326 a megawatt hour. The price of the contract was about 30 euros per megawatt hour.
The price of a megawatt hour fell from about 127 euros per megawatt hour on Thursday to 112 euros per megawatt hour on Friday.
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