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Energy becomes more and more expensive in the EU, costs at least 50% higher

2024-07-06 12:26:53Biznes SHKRUAR NGA REDAKSIA VOX

EU countries will pay much more for electricity than the US and China for many years even, and European businesses will inevitably be at a disadvantage to their competitors. And the reason is the ever-increasing demand, but also the weaknesses of the Old Continent. This is the conclusion of a report drawn up by the European business association 'BusinessEurope'.

In this report, it is emphasized that the cost of energy production will be at least 50% more expensive in the EU compared to the other two major economies by 2050. Members of this business association are the main business associations of all countries EU members, including those of Britain.

The report even states that this will happen even in the case of the "good scenario", i.e. even if the EU achieves the climate objectives it has set. If, on the contrary, the achievement of the objectives beyond 2050 is delayed, the cost of energy in the EU could be as much as three times what other major economies pay, in short its competitors.

The reason for the high cost of energy in the EU is first of all its high dependence on imports. It's a problem exacerbated by Russia's invasion of Ukraine and Moscow's cutoff of Russian gas supplies to European economies. The situation has sparked intense concern in economic and business circles on the Old Continent, who fear that Europe will fall behind the likes of Washington and Beijing in meeting the energy needs of its traditional industries such as steel, but also innovative new sectors such as clean technology, wind power and batteries.

The heads of Europe's largest industrial companies have made it an immediate priority to reduce energy costs. For the next European Commission, after all, the cornerstone of its policy will be to raise the competitiveness of European industries in the field of renewable energy sources. However, at the same time, European businesses complain that they are constantly faced with endless EU red tape.

One of the main tools used by the EU is the carbon tax it imposes on its borders with countries that have not adopted strict emissions trading programs. With this measure, the EU determines the price it sets for gas emissions for which imports from those countries are responsible. According to 'BusinessEurope', if this system turns out to be ineffective and does not help EU industries, then the commission should consider removing the licenses it has given to its industries and with which they can pollute without paying the corresponding price.


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