Birnbaum: Europe's Energy Taxes Are Worsening Industry Struggles

Foreks - Leonhard Birnbaum, the president of Europe's electricity lobby, stated that governments looking for ways to assist the continent's struggling industries should target the high energy taxes that are eroding competitiveness. As the European Union warns manufacturing giants, from automotive producers to steel companies, about plant closures and thousands of job losses, it is preparing a package of measures to support the flagged industries early next year. Birnbaum, president of Eurelectric, noted that Europe's energy-intensive industries face numerous issues, such as a more fragmented market compared to China and difficult access to credit; however, policymakers seeking quick relief must "strip away" all costs unrelated to the industry's structure from energy prices. In an interview with Reuters, Birnbaum, who is also the CEO of E.ON, said, "We recognize that governments always need more money, but if you really want to electrify, you cannot have a disproportionately high tax burden on electricity compared to the tax burden on gas. If we are serious about cost competitiveness, about electrification, about decarbonization, I believe we need to take action on this."