Brussels, SANA- On the anniversary of the landmark competitiveness report, new data shows EU companies are still paying over the odds.
European companies are still paying vastly more for energy than they would in the U.S. or China, a new analysis has found, a year after a landmark report warned inaction would condemn the continent to economic stagnation.
The findings come on the anniversary of the publication of a report by former European Central Bank chief Mario Draghi, which found the EU was lagging behind rivals as a result of expensive power and gas, hampering firms’ competitiveness internationally.
According to the new findings from the influential Center for the Study of Democracy think tank, published by Politico magazine, European countries have become more exposed to energy price shocks, with indicators surging more than fivefold in the past three years.
“A year after Draghi called for stronger EU energy markets, our data shows affordability risks remain high, with retail prices still 40–70 percent above pre-crisis levels in much of Central and Eastern Europe,” said Martin Vladimirov, one of the report’s authors.
Affordability is now by far the greatest threat to the EU’s energy resilience, outstripping the uncertainty created by the climate transition and by system reliability.
“It affects not only citizens’ trust, but also the capacity of businesses to compete globally,” the Center for the Study of Democracy assessment cautions.
“For Europe to succeed in the next phase of its energy transition, it must ensure that clean energy is not only available, but accessible and economically viable for all.”
Vulnerabilities in one domain also risk spilling over into others, adding to the major and often historical divides that already exist between EU countries, the report cautions.
If the bloc fails to address the gulf between countries’ energy security, it threatens to entrench regional inequality and undermine its economic sovereignty and climate goals, it warns.
In his report last September, Draghi wrote that “EU companies still face electricity prices that are 2-3 times those in the US. Natural gas prices paid are 4-5 times higher. This price gap is primarily driven by Europe’s lack of natural resources, but also by fundamental issues with our common energy market.”
Npura /Fedaa
