Finance
EU must cut power prices to be competitive, central European leaders say
Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
Quick Summary
Central European leaders urge the EU to cut electricity prices to boost industry competitiveness, focusing on carbon allowance costs and natural gas prices.
Central European Leaders Urge EU to Lower Electricity Prices for Competitiveness
EU Leaders Address Electricity Pricing Challenges
Feb 10 (Reuters) - The European Union must act to cut electricity prices to safeguard the competitiveness of its industry, the prime ministers of Austria, the Czech Republic and Slovakia said on Tuesday ahead of a summit on strengthening the bloc's economy.
Impact on Industry Competitiveness
EU leaders will meet for an informal summit at a Belgian castle on Thursday to discuss ways to compete with global rivals such as China and the U.S.
Proposed Solutions for Lowering Costs
The Czech Republic and Slovakia have pushed for policies to lower energy prices to support their industry-heavy economies, and have been particularly critical of the cost of allowances that companies receive, or must buy, to cover their carbon output under the EU's Emissions Trading Scheme (ETS).
Upcoming EU Summit Discussions
"If there is nothing else but one informal conclusion on Thursday, that we will lower electricity prices, I will consider this summit a great success," Slovak Prime Minister Robert Fico told a news conference after talks with his Austrian and Czech counterparts in Bratislava.
Austrian Chancellor Christian Stocker said natural gas prices were the key driver of power costs and should be addressed.
Czech Prime Minister Andrej Babis has been lobbying other governments to support capping the price of carbon allowances under the current ETS1 scheme and delaying the ETS2 scheme, which will extend costs to household heating and motor fuels.
An internal document seen by Reuters on Tuesday showed the EU is considering a different overhaul of the system of free CO2 permits for industries to align it with the bloc's 2040 emissions-reduction target.
The European Commission presentation shows Brussels is weighing three options to revamp the current ETS system of giving industries some free CO2 permits. That system reduces their overall pollution costs and helps them compete with foreign firms that do not pay for their emissions.
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni will press at the summit for a coordinated EU strategy to support businesses, attract investment and strengthen the single market.
(Reporting by Jan Lopatka in Prague. Editing by Mark Potter)
Key Takeaways
- •Central European leaders urge EU to reduce electricity prices.
- •High energy costs impact EU industry competitiveness.
- •Czech and Slovak leaders propose lowering carbon allowance costs.
- •Upcoming EU summit to discuss energy pricing strategies.
- •EU considers overhauling CO2 permit system for 2040 targets.
Frequently Asked Questions about EU must cut power prices to be competitive, central European leaders say
1What is electricity pricing?
Electricity pricing refers to the cost consumers pay for electricity usage, which can be influenced by various factors including supply and demand, production costs, and regulatory policies.
2What is the EU's Emissions Trading Scheme (ETS)?
The EU's Emissions Trading Scheme (ETS) is a market-based approach to controlling pollution by providing economic incentives for reducing emissions of pollutants.
3What are carbon allowances?
Carbon allowances are permits that allow companies to emit a certain amount of carbon dioxide. Companies can buy or sell these allowances as part of emissions trading.
4What is industry competitiveness?
Industry competitiveness refers to the ability of a company or industry to produce goods and services that meet the test of international markets while maintaining or expanding its market share.
5What is a carbon cap?
A carbon cap is a limit set on the total amount of greenhouse gases that can be emitted by all participating entities in a cap-and-trade system.