Greek Prime Minister Kyriakos Mitsotakis has proposed a pan-European mechanism to compensate industrial enterprises for reduced gas consumption this winter as part of Europe's efforts to overcome the gas shortage, reports Reuters.

EU countries approved a loosened emergency plan to curb gas demand on Tuesday after compromise agreements were reached.

In a letter to European Commission President Ursula von der Leyen, Mitsotakis proposed a pan-European mechanism that would compensate industrial consumers for reduced gas and electricity consumption this winter.

Mitsotakis noted that this mechanism will cover demand reduction for several months, not hours or days, and combine elements of the energy market structure and the way the industry is fairly compensated.

The instrument will be funded with national and European resources, demonstrating solidarity and allowing funds to be transferred to those most able to reduce gas consumption, Mitsotakis wrote in the letter.

Greece uses Russian gas for 40% of its needs and uses two-thirds of the fuel for electricity generation. She asked for exemptions from the reduction in EU gas demand.