Energy, Independence and Competitiveness

Beyond the imperative of preserving the planet, the energy transition is a strategic challenge that Europeans must urgently recognize.

Firstly, energy — alongside defense and innovation — is key to independence. European countries that relied on cheap Russian gas learned this the hard way following the invasion of Ukraine in 2022. In this context, it is deeply concerning that, under the trade agreement signed with the United States in July 2025, the European Commission committed to purchasing oil, liquefied gas, and nuclear fuel worth $750 billion over three years. Not only can the Commission not compel European companies to follow through, but the Trump administration explicitly stated that the agreement would “strengthen US energy dominance.” And earlier this year, the military intervention in Venezuela again highlighted the role of energy in America’s new foreign policy. President Trump made no secret of his interest in Venezuela’s vast oil reserves. Similar ambitions are evident in the push to control Greenland and Canada — territories rich in minerals, hydrocarbons and water. Meanwhile, China has secured privileged access to the rare earth minerals essential for the transition. After fierce price dumping, it now dominates the solar panel market and threatens Europe’s wind turbine industry.

What Does Europe Want?

With these new dependencies in mind, decarbonization and the shift to renewable energy are indispensable if Europeans wish to increase their strategic autonomy. But do they truly want to?

The European project began in 1950 with the supranational pooling of coal and steel production. In 1957, Jean Monnet attached greater importance to the Euratom agreements than to the Treaty of Rome. Unfortunately, despite the 1973 oil shock, the common energy market stalled. Diversity in Europe’s energy mix is not necessarily a bad thing for collective resilience and competition, which drives innovation. However, this diversity is less a conscious choice, grounded in a comprehensive vision, than a default situation. Major national decisions, such as Germany’s nuclear phase-out, have been made unilaterally, even as valuable progress was made in renewables, particularly in Germany and Spain. It is worth noting that political or ideological antagonisms (pro- or anti-nuclear, pro- or anti-wind) pay little heed to the interconnections of national electricity grids. Everyone consumes what is available on the market at any given moment, without knowing where the power comes from…

Energy: Strategic for Businesses

Moreover, energy is a strategic factor in corporate competitiveness. According to Eurostat, in 2025, the average price for 100 kWh was €28.7, with significant variations: €38.4 in Germany, €32.9 in Italy, €26.6 in France, and €26.1 in Spain. The report “Much More Than a Market” by Enrico Letta rightly raises the issue of energy in a supposedly single market and makes various proposals regarding interconnections and hydrogen, for example. With the development of Artificial Intelligence — highly energy- and water-intensive — EU internal distortions are likely to weigh even more heavily in the future.

Thus, not only do ecological imperatives urge us to accelerate the transition, but Europeans have every reason to work toward greater independence. Pitting transition against competitiveness is a strategic mistake and a short-sighted view.