High energy prices are harming Europe’s competitiveness

The president of the European Union (EU) Commission, Ursula von der Leyen, said that the price that Europe pays for energy is higher than that of other continents, and this negatively affects its global competitiveness.

Von der Leyen spoke at the opening of the 2023 Green Deal Summit in the Czech Republic.

“The European Green Deal was born from the need to protect people and the planet,” von der Leyen said, adding that it was also designed as an opportunity to build future prosperity.

Von der Leyen said: “Last year, greenhouse gas emissions in Europe decreased by approximately 2.5 percent, while the economy grew by 3.5 percent. “We have successfully reduced our emissions while our economy grows,” he said.

‘PRICES RETURNED TO PRE-WAR LEVELS’

Von der Leyen stated that “today for the first time in Europe the production of electricity from wind and sun exceeds gas” and stated that renewable energies are not only good for the planet, but also contribute to energy independence and increase employment.

Von der Leyen noted that the European business community is struggling with several challenges that hinder innovation.

Noting that high energy prices are a major test for Europe, von der Leyen said:

“In the summer of 2022, when the energy crisis was at its peak, gas prices were 10 times higher than today. Today, energy prices in Europe have returned to pre-war levels. This is a success resulting from our unity. However, the price we pay for energy is structurally higher than on other continents. This poses a problem for our global competitiveness.

If the share of renewables in our energy mix continues to increase at the current rate, we will soon be able to protect ourselves against the high prices of imported fossil fuels. Therefore, we must continue on this path so that Europeans can access clean and cheap energy.”

Stating that European companies often face competition from foreign players who are heavily subsidized, von der Leyen emphasized that competition must take place under fair conditions. (AA)