Gas more expensive than in the United States, electricity more expensive than in China: industry in Europe, losing competitiveness, is penalized by energy prices much higher than elsewhere, warned the head of the International Energy Agency.
“The price of natural gas in Europe is five times higher than that of the United States and the price of electricity in Europe is three times higher than in China”declared the executive director of the AIE, Fatih Birol, at the conference of the French Electricity Union (UFE).
“How can European manufacturers, especially those for whom the cost of energy represents a significant part of their overall cost, compete with other countries? »he continued.
“European industry, or more precisely manufacturing industry, is entering a decisive period which could have significant consequences for the European economy, Europe’s weight in foreign affairs and Europe’s security”underlined Dr. Birol.
In terms of “clean technologies” (solar panels, wind power, batteries, electrolysers), “Europe lags significantly behind many other economic powers such as China, the United States and, in some cases, even India and other countries”explained the head of the OECD Energy Agency, also mentioning the difficulty for the EU to have “a clear strategy”.
“Europe must urgently address these issues and develop a new master plan for the industry”he added, echoing the report by former Italian Prime Minister and former President of the European Central Bank (ECB) Mario Draghi, on the loss of competitiveness of European industry.
For Fatih Birol, we must particularly question support for “existing industries, iron, steel, petrochemicals, aluminum” and the way of “closing the cost gap between them and their competitors”.
“It is perhaps necessary to have a more muscular trade policy from Europe”, he also indicated.
According to the head of the IEA, Europe has committed “three strategic errors” in the past: too much dependence on Russian gas, a lack of interest in nuclear energy, and the abandonment of solar energy, which ultimately benefited China.
“China now manufactures 80% of solar panels, 20 years ago, France was the leader” thanks to a policy of subsidies, recalled Fatih Birol.
With AFP
