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Making the difference – Biotechnology for Europe
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When France’s Emmanuel Macron went to visit Germany, they treated him to a local speciality: a sandwich made of mackerel garnished only with white onion slices. A delicacy, locals insist.
Dubious fish sandwiches are not the only injustice the Germans inflict on their European neighbours. Served not in a bun but on electricity bills, Berlin’s power market doggedness is rammed down EU throats, as its geographical location and size make it impossible to circumvent. Instead, it has become the clogged heart of Europe’s electrical grid.
The country, which in the midst of an energy crisis switched off its last nuclear power plants – each of the six capable of supplying one of the bloc’s smaller countries – continues to oppose splitting its single electricity price bidding zone.
Last year, it cost €4.3 billion to balance Europe’s congested grids. Germany was the main culprit, responsible for €2.8 billion of those costs through its mismatch between power generation (located in the north) and consumption (much of it in the south) – which the country’s unitary price zone obfuscates at great expense.
Unable to conceive of a world in which the proud Bavarian car industry could be forced to pay more for power than Volkswagen in the northern state of Lower Saxony, the country resists calls from neighbours and Brussels to fix the issue (by creating separate price zones).
By 2040, the annual cost of Germany’s internal politicking could surge to €103 billion, EU researchers caution.
For more than a decade, Germany’s Eastern neighbours have complained about the hurt it does to their grids. Increasingly, the Nordics are berating Berlin as well.
Sweden loudly cancelled a cable project connecting it to the German mainland, slagging off the German Greens and their militant anti-nuclear energy stance. Norway, which is essential to keeping power prices down in Europe, says it “cannot cover the lack of baseload in Europe by itself.”
Germany really ought to split its bidding zones like everybody else, Oslo suggests in diplomatic terms.
Matters are not helped by the fact that Germany, Europe’s self-styled Energiewende pioneer, occasionally suffers from a notoriously dirty energy mix. Widely shared snapshots– for instance on Tuesday, when the country ran on 37% coal and 33% gas all day – add grist to the mill for its neighbours.
But rather than tackle these structural issues, Berlin has been content to subsidise its way through them. In 2026, the country will spend more than €6 billion on covering up this dysfunctional system, accompanied by an act of superb largesse known as “industrial power tariff” that will allow companies to pay just 5 cents per kWh.
This has even raised concerns from the normally reserved monopolies commission, a government advisory body. “Symptom relief alone is not enough,” it said. “Only by addressing the root causes of high energy prices can we achieve lasting progress.”
But as any cardiologist will tell you, hearts are hard to treat. And this one’s too big to fail.
Roundup
The economic toll of violence against women – Gender-based violence costs the EU some €366 billion a year, with violence against women alone accounting for 79% of the total. Until Brussels treats gender equality as a serious economic policy issue the EU will keep losing billions, and women will keep paying the ultimate price.
Anti-deforestation rules delayed – A majority of MEPs voted in favour of amendments to delay the anti-deforestation framework. The rules, which should have entered into force by December this year, require companies to ensure that products sold in the EU – including cocoa, coffee, soy, palm oil, rubber, livestock, and timber – have not contributed to deforestation.
Is Belgium right about the reparation loan? – Belgium’s hesitation to allow the reparations loan is valid, but Europe has run out of time for elaborate Plan Bs, argues Euractiv columnist Simon Nixon. If Europe wants real influence in the Russia-Ukraine war, it must address Belgium’s concerns and finally deliver on its promise to use the frozen assets to fund Ukraine’s economy.
Across Europe
Spain paralysed by judicial probes – Corruption scandals are not unusual in Spanish politics, but the inner circle of Prime Minister Pedro Sánchez is riddled with investigations. The slew of high-profile court cases have dominated headlines, sapping energy from other political affairs.
Lebanon and Cyprus sign maritime border agreement – The agreement demarcates the countries’ exclusive economic zones, the latest high-seas deal aiming to open up commerce in the eastern Mediterranean.
Aux armes! France prepares new voluntary military scheme – President Emmanuel Macron is poised to announce a new voluntary military service that aims to recruit 50,000 more young people every year by 2035. The Élysée has yet to define the missions for these new recruits.