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Study: High energy prices in Europe affect competitiveness

According to a study, energy costs in Europe will be at least 50% higher than in the USA, China & India by 2050, even with subsidies. Energy-intensive European sectors in particular are losing competitiveness.

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A new study by BusinessEurope shows that energy-intensive European companies in particular are losing their international competitiveness due to high energy prices and inadequate energy policies. By 2050, energy costs in Europe will be at least 50% higher than in the USA, China and India, even with subsidies.

Removing barriers, making the right investments

There are many reasons for this: At least 108 Green Deal laws and initiatives must be implemented at national level in the EU in the coming years. In addition to lower energy costs, international competitors also have to bear a lower bureaucratic burden, which makes them more competitive on the global market. In addition to the expansion of renewable energies, it also requires the expansion of infrastructure, which is currently suffering from long approval procedures and insufficient investment. It also needs openness to climate-neutral hydrogen as an energy source for industrial processes. To achieve this, a cost-efficient ramp-up should now be made possible at European level.

Depending on the scenario, without rapid countermeasures there is a risk of a massive loss of competitiveness, making production in Europe uneconomical compared to other locations. The deindustrialization of Europe is thus gathering pace, warned Christoph Neumeyer, Secretary General of the Federation of Austrian Industries, on the occasion of the publication of the study.

Click here for the entire study: rebooteurope.eu

Anja Herberth
Author: Anja Herberth

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