Summary
The joint letter to President von der Leyen addresses the dire impact of the European energy crisis on energy-intensive industries, arguing that the current gas and electricity market dynamics are untenable. It highlights the exorbitant gas prices, which have reached 334 €/MWh, severely affecting industrial operations, leading to plant closures, reduced production, and increased dependency on external markets. The letter calls for immediate EU-wide measures to limit gas prices and decouple electricity prices from gas prices to prevent further damage to the European economy and industrial base.
Key Takeaways:
- Due to the European energy crisis, many industrial plants have already reduced production or shut down, increasing Europe’s reliance on external markets and raising global carbon emissions.
- Immediate action from the EU is required, including introducing measures to cap natural gas prices and disconnect electricity prices from gas prices, alongside adjusting the temporary crisis state aid framework to accommodate the new reality.