Once again the world finds itself on the brink of a renewed energy crisis, and once again Europe appears ill-prepared. If Israel should decide to attack the Iranian oil industry, a spike in energy prices – especially crude oil – will be almost impossible to avoid. The fact is that the European Union consumes approximately 11 per cent of the world’s oil and 8 per cent of its natural gas while only producing 0.5 per cent of the former and 0.9 per cent of the latter. Any conflagration that drives up international prices for energy will hit the EU hard.

On the other side of the Atlantic stands the United States as the world’s largest energy and agricultural producer, providing its industries with a competitive edge and security that European countries struggle to match. This advantage is not merely quantitative; it symbolises a culture of innovation that thrives in a landscape unencumbered by excessive regulation. In stark contrast, European companies, particularly in the automotive sector, are finding themselves stifled by bureaucracy and soaring energy costs—costs so high that iconic manufacturers like Volkswagen are now considering shuttering their factories in Germany for the first time in their 87-year history.

The shift towards electric vehicles initially heralded a wave of optimism. Incentives made EVs attractive, but as government support waned, so did consumer interest. The lesson here is straightforward: economic viability must accompany ambition. If the transition to renewable technologies does not consider market realities or consumer needs, it risks becoming an expensive failure. 

What looms even larger is the emergence of Chinese prowess in manufacturing. Over the years, China has expertly cultivated an environment conducive to technological advancement. By enticing Western companies to produce within its borders, it has absorbed invaluable expertise. Today, Chinese manufacturers are outpacing their European counterparts regarding efficiency, cost, and quality in producing electric vehicles and solar panels. Instead of taking a competitive stance to reclaim lost ground, Europe finds itself stagnating under regulatory burdens that hinder innovation.