Top executives from major European companies have called on the European Union to urgently reduce energy prices, warning that high costs are undermining the continent’s industrial competitiveness compared with the United States and China.
The appeal comes as EU leaders prepare to meet to discuss strategies for strengthening Europe’s economic position in global competition.
CEOs call for emergency measures
In a joint statement, hundreds of business leaders urged European policymakers to adopt emergency measures to lower energy costs and support demand for products made in Europe.
“The next five years will be the most challenging for Europe’s industry in many decades. While the situation is dire, the outcome is not inevitable. We can overcome, if you act“.
Among the signatories were executives from major industrial groups such as BASF and ArcelorMittal, highlighting the scale of concern across energy-intensive sectors.
High energy prices driving investment away
Several industry leaders warned that persistently high electricity costs are pushing companies to move investments outside Europe.
Jon Morrish, CEO for Europe of Heidelberg Materials, said: “Number one, on energy prices, that they must come down. They must take us seriously, and they must realize that that is really hampering Europe’s competitiveness.”
Heidelberg started to move some investments away from Europe due to high energy prices.
Conrad Keijzer, CEO of Clariant stated: “Why is Europe so much behind compared to the rest of the world? It’s the energy situation.”
The loss of cheap Russian gas imports following Moscow’s invasion of Ukraine incresead bills for many energy-intensive industries. Other crucial factors, such as congested power grids, national taxes and the EU’s CO2 emissions price also contribute to boost energy prices.
European industries have to face double costs compared to U.S. and China.
Taxes and market structure under scrutiny
European Commission President Ursula von der Leyen acknowledged the need to better connect power grids and criticised the imbalance between electricity and gas taxation: “While energy costs are going down, national taxes on energy are going up. And the taxes that industry pays on electricity are 15 times higher than taxes on gas. This is just wrong“.
No quick solutions in sight
Despite growing pressure, industry leaders recognise that reducing energy costs will not be immediate, as modernising power grids and reforming tax rules require time and political consensus.
On the political side, there is no will to change the system.
Some executives have even suggested direct intervention to stabilise prices, arguing that industry cannot withstand prolonged volatility in electricity costs.
Philippe Kehren, CEO of chemicals multinational Solvay , said the sector claims leaders to intervene directly to guarantee stable power prices – potentially by setting regulated prices for industry.”I don’t see any other option, frankly speaking. Industries cannot cope with super-volatile, high-level electricity prices,” he said.