Prime Minister Andrej Babiš has once again appealed to President Ursula von der Leyen to take swift action to help lower energy prices in the European Union and protect industry from further weakening. In his letter to Ursula von der Leyen, he warns that the current situation threatens the competitiveness of European companies and the stability of the economy as a whole.

The Prime Minister is following up on his previous communication and the conclusions of the last European Council, which, according to him, clearly showed the need for an immediate response. „This urgent situation calls for a response and immediate and targeted solutions are needed to ensure affordable energy prices, while taking into account technological neutrality, the specific situations of Member States and the risk of losing the competitiveness of certain industries,“ uvádí Andrej Babiš.

The energy crisis is widening divisions in the EU

According to the Prime Minister, one of the main problems remains the fragmented energy market within the EU. Companies in different countries face significantly different electricity prices, which distorts competition. Paradoxically, the regions that have decarbonised most in the past now face the highest electricity prices, often over EUR 100 per megawatt hour.

According to Andrej Babiš, the EU ETS emission allowance system also plays a significant role in the prices, contributing up to 24 % to the final price. Energy-intensive sectors are among those that have contributed most to the decarbonisation of the European Union so far.

Industry in decline, capacities falling

According to the Prime Minister, the current combination of high energy prices and emission allowances is fundamentally threatening the competitiveness of European industry. It has already led to plant closures and production cutbacks in recent years.

Over the last five years, the European Union has seen a decline in production capacity of at least 10 % in the chemical and cement industries. Similar trends are also evident in steel and aluminium production. According to Andrej Babiš, this trend is leading to a shift of production outside Europe and, paradoxically, to an increase in global greenhouse gas emissions.

The solution? More free allowances

The Prime Minister welcomes the European Commission's proposal to revise the emission allowance system, which was presented on 1 April, but considers it insufficient.

It sees the introduction of additional free emission allowances for businesses in the most affected sectors and regions as an effective and quick solution. These should be conditional on specific plans to reduce emissions.

„I remain convinced that immediate action is necessary,“ Babiš stressed, adding that the Czech Republic is ready to work with Ursula von der Leyen and the European Commission to resolve the situation.

The situation is taking place against the backdrop of the ongoing crisis linked to the conflict in the Middle East, which is pushing up energy prices and increasing uncertainty in the markets. European industry is thus facing a combination of high costs, regulatory pressure and strong global competition.

Andrej Babiš's letter thus represents further pressure on the European institutions to take more decisive steps to prevent further weakening of the economy.

gnews.cz - GH