EURATEX objects to EU's plan for wholesale gas price cap at €275/MWh

Now, the EU industry is facing gas and energy prices that have exceeded any coping capacity: from the record-high €320/MWh last August, the price has reached €127/MWh today. Still, it is more than 300 per cent than the business-as-usual prices, according to a press release by EURATEX.

The very existence of the European industry is at stake and with it the European sustainability agenda—and Europe’s capacity to implement it. Furthermore, Europe will lose its strategic autonomy, which guarantees essential goods and services are made available on the European internal market. Continuing on this path will lead the EU to soon become totally dependent on foreign imports with no leverage to implement its sustainability agenda, let alone lead the transition to a circular economy on the international stage, EURATEX said.

At present, the EU industry is facing a dire international competition with the industry in China, India, and the US working at energy prices of around $10/MWh. In addition, these competitors are benefitting of sky-high subsidies from their own governments: the rollout of the $369 billion industrial subsidy scheme is just the latest example.

“While the EU Industry is under immense, unprecedented pressure, a price cap at €275/MWh would be meaningless: the European industry will be permanently pushed out of the market. The industry is at the heart of the European way of life and the fundament of our social market economy. The EU must save its industry to save Europe. The moment to act is now,” said EURATEX director general Dirk Vantyghem.

Fibre2Fashion News Desk (NB)