The EU must urgently lower energy prices and ease regulations to stop industry fleeing the continent, European businesses said on Monday, as Brussels prepares plans to stimulate the green economy.
The European Union is racing to make Europe more attractive for the companies that could be tempted by massive US and Chinese subsidies and lower energy costs.
This week the European Commission, the EU’s executive arm, will present plans to reform Europe’s electricity market, to boost the green transition and guarantee the supply of critical raw materials.
Europe, the EU’s main business lobby group, said Brussels’ efforts were insufficient and too slow.
“The risk of deindustrialisation in Europe is real,” warned Markus Beyrer, director general of BusinessEurope.
Many companies are already “partially or totally relocating their production outside Europe”, said BusinessEurope, which represents employers’ associations from 35 countries.
The commission on Thursday loosened state aid rules for companies in sectors that help reduce carbon emissions as part of its response to subsidies offered elsewhere.
Europe however called for more action including cutting taxes on energy and keeping them low to reduce businesses’ bills.
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