(MENAFN) Fatih Birol, the Executive Director of the International Energy Agency (IEA), has raised concerns about Europe's energy policy decisions, characterizing them as significant historical mistakes. In an interview with the Financial Times, Birol highlighted two key errors: Europe's reliance on Russian gas and its move away from nuclear energy. He emphasized that these decisions have placed European industry at a disadvantage and urged the need for a new comprehensive industrial strategy to facilitate recovery.
Birol's remarks coincide with discussions among EU leaders regarding the bloc's economic competitiveness, underscoring the urgency of addressing these challenges. According to Birol, Europe trails behind China and the United States in areas such as clean technology manufacturing, attributing this lag to a combination of intricate regulations and elevated energy costs. Notably, electricity prices in the European Union are substantially higher compared to those in the United States, posing a significant burden on industries, particularly heavy industries.
The shift away from Russian gas, while a strategic move in the wake of the Ukraine crisis, has also contributed to the challenges faced by European industries. Previously, Russian gas accounted for over 40 percent of Europe's supplies, but this figure dropped to 15 percent by 2023. While this transition aimed to reduce dependence on Russian energy sources, it has resulted in economic repercussions for European businesses.
Birol's critique underscores the need for Europe to reassess its energy policies and industrial strategies to enhance competitiveness and mitigate economic risks. Addressing the complexities of energy supply and ensuring a balanced approach to energy sources will be crucial in fostering sustainable growth and resilience in European industries.
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