The American Interest
Analysis by Walter Russell Mead & Staff
German Utility Warns Industry Fleeing Europe to US

energyprices

The CEO of Germany’s largest utilty, E.ON, has some stark warnings for European policymakers regarding the continent’s energy policy. While American industry enjoys outrageously cheap natural gas (thank you, shale), energy prices in Europe are rising. In today’s globalized world, businesses are willing and able to pick up and move across the Atlantic to take advantage of the shale boom, and that has many in Europe worried. The FT reports:

“There is a competitive advantage for America that we cannot prevent, at least for some time,” [Johannes Teyssen, chief executive of Eon] told the Financial Times. He said it was “a dream” for politicians to suggest otherwise. “It will take years and long years of innovation before we can start to shrink it,” he added….

“The price difference is unnerving some companies and deciding their investments,” Mr Teyssen said, adding that the US advantage was “getting so big we cannot allow it to continue”.

You reap what you sow. Europe’s stubborn refusal to back fracking and its decision to subsidize expensive green technologies have had real, quantifiable costs. Rising electricity prices don’t just hurt businesses; they hamper households struggling to recover from the financial crisis. Putting ideals before economic sense rarely solves problems.

Published on October 1, 2013 5:30 pm
  • Clayton Holbrook

    Some of the most twisted reasoning I’ve heard from Greens is the willingness to make policy that makes traditional sources of energy provisions rise in cost to make renewables more competitive.

    • Andrew Allison

      I couldn’t agree more! The simple fact is that fossil fuel, with all its deleterious effects, is the most cost-effective source of energy available to us.

  • Pete

    Love it!

  • bigfire

    Have no fear, the Greens in this country will do their darndest to ensure that our electricity will be just as price competitive as European by banning affordable fracking.

  • Joseph Blieu

    The trustifarian environmental block bans on the possibility while ignoring the known benefit. We will spend $10e9 on pollution controls but we will ignore usefull spending on eliminating a mountain highway curve that kills one person per year. This is the age of imaginary virtue.

  • Corlyss

    I wonder if Ms. Merkel is listening. Do they detest industry as much a our elites do?

  • Atanu Maulik

    Like all Gods, the Green Gods too will demand huge sacrifices from the faithful. Lets see how much pain the faithful is willing to bear.

  • Boritz

    Can we do anything to reverse this trend? Yes we can.