The Future of European Competitiveness – In-Depth Analysis and Recommendations

The EU faces a significant competitiveness gap in energy prices compared to its trade partners, with gas and electricity prices in the EU being three to five times higher than those in the US. The energy crisis has exacerbated these differences, leading to varying price levels across Member States. National measures to address the crisis and Russia's influence on the EU's energy supply have further contributed to the disparity in energy prices. Retail energy prices for consumers vary greatly, ranging from over EUR 250/MWh in some Member States to less than EUR 100/MWh in others. The spread between the highest and lowest energy prices in EU Member States has doubled in 2022 and continued to rise in 2023. The lack of price convergence in the EU is hindering energy-intensive industries and the overall economy, making it crucial for the EU to address these issues to enhance its competitiveness.