· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: High energy costs and industrial decline are becoming Europe’s “new normal,” particularly affecting energy-intensive sectors like chemicals and steel
• Germany, the EU’s manufacturing hub, has slipped into a recession, with fears that without drastic action, European industry could face long-term decline
🔭 The context: Following Russia’s invasion of Ukraine, Europe transitioned from cheap Russian gas to expensive liquified natural gas (LNG), causing energy prices to soar
• Companies across Europe are grappling with higher costs than overseas competitors, leading to production cuts, layoffs, and plant closures
🌍 Why it matters for the planet: The industrial downturn threatens the EU’s climate goals as energy-intensive sectors struggle to decarbonize while maintaining profitability, increasing reliance on imported goods that may not meet the same environmental standards
⏭️ What's next: EU officials, including Mario Draghi, are pushing for a massive overhaul, aiming to boost green industries and modernize Europe’s outdated power grids
• Urgent reforms are needed to prevent further industrial decline and secure Europe’s economic future
💬 One quote: “We must genuinely fear for our self-preservation,” warned Mario Draghi, underscoring the urgency of economic and energy reforms
📈 One stat: European industrial production, excluding Covid-related disruptions, is hovering around a 10-year low
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