Rising Energy Costs Threaten European Business Competitiveness
Europe's businesses are facing renewed pressure as rising oil and gas prices threaten to widen the cost gap with competitors in the United States and Asia. The latest energy shock has brought the issue back to the centre of European economic policy, just as companies continue to manage the effects of earlier price surges. Since the US-Israel conflict with Iran began, European gas prices have climbed sharply and diesel prices have doubled, raising concerns about production costs, inflation and the region's industrial competitiveness. However, the impact varies considerably across sectors, with energy-intensive manufacturers facing greater risks than many large listed companies.
