Executive Summary
The ongoing energy crisis, characterized by persistently high gas and electricity prices, is undermining the competitiveness of European industry. Energy‑intensive sectors—particularly the chemical industry—are facing increasing difficulties in competing with regions that benefit from abundant and affordable domestic energy resources. Without decisive action, Europe risks accelerated deindustrialization, job losses, and a lasting erosion of its industrial base.
FECER advocates for the use of an energy mix whose overall cost—covering production, distribution, and system management—is adapted to the specific conditions of each Member State. Such an approach should guarantee European industry access to secure, reliable, and competitive electricity and to remain consistent with Europe’s climate ambitions, such a transition should be guided by the principle of technological neutrality, avoiding rigid mandates that limit flexibility or increase costs unnecessarily. Within this strategy, nuclear energy-being a low-carbon, safe and pilotable source of electricity -should play a central role to provide a stable baseload.
Impact of High Energy Prices on European Industry
European industry operates under significantly higher energy costs than its main international competitors. This disadvantage is especially acute for the chemical sector, which relies heavily on natural gas both as a feedstock and as an energy source. As a result, production costs have risen sharply, leading to plant closures, reduced capacity utilization, and industrial restructuring across several Member States. The social consequences are substantial, with thousands of skilled jobs already lost or under threat.
Transatlantic Electricity Price Gap
The competitiveness gap between Europe and the United States is clearly illustrated by wholesale electricity prices. During the first half of 2025, average wholesale electricity prices in the European Union ranged between €85 and €90 per MWh (IEA data). Over the same period, prices in the United States averaged approximately €48 per MWh—nearly half the European level.(see figure hereafter)
This gap is even more pronounced within Europe itself. In Northern Europe, wholesale electricity prices averaged around €73 per MWh, while in Southwestern Europe they ranged between €118 and €131 per MWh. Germany, facing structural challenges linked to its Energiewende, has ultimately been compelled to subsidize electricity prices to protect its industrial base.
Structural Causes of the Price Disparity
The transatlantic energy price gap is largely driven by structural factors. In the United States, abundant domestically produced natural gas supplies power generation at relatively low cost, ensuring stable and competitive electricity prices. In contrast, the European Union remains highly dependent on imported fossil fuels, particularly natural gas and coal.
At the same time, European energy prices are significantly affected by climate policies, including carbon pricing mechanisms. While these policies are essential to achieving long‑term climate objectives, they also increase short‑term costs for industry when not accompanied by sufficient access to affordable, low‑carbon energy alternatives.
Strategic Importance of Gas Prices for the Chemical Industry
For the chemical industry, access to competitively priced natural gas has become a strategic priority. Gas prices directly affect production costs, investment decisions, and the location of future capacity. Persistently high prices in Europe risk accelerating the relocation of production to regions with lower energy costs, further weakening Europe’s industrial sovereignty.
Restoring Europe’s Energy Sovereignty
For Europe as a whole, restoring a sovereign and competitive energy base must become a central policy objective. This requires a pragmatic reassessment of all available options, including domestic exploration and production of natural gas where environmentally and socially acceptable. Reducing excessive dependence on imports is essential to enhance security of supply and price stability.
In this context, FECER advocates for the use of an energy mix whose overall cost—covering production, distribution, and system management—is adapted to the specific conditions of each Member State. Such an approach should guarantee European industry access to secure, reliable, and competitive electricity.
Technology‑Neutral Low‑Carbon Energy Mix
To remain consistent with Europe’s climate ambitions, low‑carbon technologies must play a central role in the future energy system. However, this transition should be guided by the principle of technological neutrality, avoiding rigid mandates that limit flexibility or increase costs unnecessarily.
Within this strategy, nuclear energy—being a low‑carbon, safe, and pilotable source of electricity—should play a central role. Alongside renewables and other low‑carbon solutions, nuclear power can provide the stable baseload needed to support industrial activity while ensuring progress toward climate objectives.
Conclusion
Europe’s energy crisis is no longer a temporary shock but a structural challenge with profound implications for industrial competitiveness, employment, and strategic autonomy. Addressing it requires a balanced and pragmatic energy policy that reconciles climate ambition with economic reality. Ensuring access to affordable, secure, and low‑carbon energy is a prerequisite for preserving Europe’s industrial future.
