Greek PM urges EU to rethink energy strategies to improve competitiveness

Investing.com -- Greek Prime Minister Kyriakos Mitsotakis has urged the European Union to devise new strategies to reduce gas and electricity prices. This is part of a wider initiative aimed at enhancing the competitiveness of the bloc.

Mitsotakis emphasized the need for innovative approaches to address the issues faced by the EU in a letter to European Commission President Ursula Von der Leyen. He pointed out that the high energy prices are indicating the necessity for faster and different actions.

The prime minister's call comes at a time when Europe's competitive disadvantage compared to the US and other low-cost markets is becoming increasingly apparent. This disparity was particularly noticeable during the 2022 energy crisis and is again in the spotlight as Europe prepares for potential trade wars with the upcoming Trump administration.

Greece, meanwhile, has been making efforts to elevate its position as a key entry point for energy imports into the region. These efforts include investments in liquefied natural gas terminals, pipelines, and power lines.

In his letter, Mitsotakis stressed the importance of better integration of national grids within the EU. He also called for a renewed focus on gas security, citing changes in the geopolitical landscape that make this task more urgent. Despite Europe's plans for a future with less reliance on gas, the prime minister stated that the continent will still depend on gas for at least the next two decades.

He further urged the EU to enable European firms to invest in gas projects and infrastructure and to sign contracts ensuring access to global supplies.

In terms of electricity, Mitsotakis suggested the formation of a task force to increase cross-border flows in areas with significant price differences. He also called on the EU to revamp its long-term planning process for grids and to limit the costs associated with overregulation of emissions.

The European Commission, following five years of focus on green initiatives during Von der Leyen's first term, is now outlining actions required to boost competitiveness. This is being done while maintaining its ambitious climate policies.

Mitsotakis, a strong supporter of Von der Leyen's re-election, was one of the two leaders who endorsed her candidacy on behalf of the European Popular Party.

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Source: Investing.com