European countries are facing economic turmoil as they rapidly shift from traditional energy sources to renewables. The Wall Street Journal highlights that Europe has reduced carbon emissions by 30% since 2005, outperforming the U.S. by a notable margin. However, this success has come at a steep price. Many nations on the continent now grapple with soaring electricity costs, which have put significant strain on their economies.
Germany leads the pack with the highest domestic electricity prices in the developed world. Meanwhile, the U.K. holds the title for the highest industrial electricity rates in a comparison of 28 major economies by the International Energy Agency. Italy also faces challenges, as its electricity prices for heavy industries remain significantly higher than those in the U.S. and China. This trend has dangerous implications for industry, as highlighted by Dieter Helm, an economic policy professor at Oxford, who stated, “We are hemorrhaging industry.”
The impact on businesses is palpable. Notable companies have curtailed operations or moved their assets due to high energy costs. For instance, Exxon Mobil’s closure of its chemical plant in Scotland underscores this troubling trend. Huntsman, a Texas-based chemicals manufacturer, describes its experience in the U.K. as a steep decline from once being the world’s most competitive location two decades ago, reducing its workforce from over 2,000 to about 70 as it sold off most of its U.K. assets.
In another stark example, Ireland has placed a moratorium on new data centers, crucial for AI, until 2028 due to inadequate electrical capacity. This situation raises questions about the sustainability of Europe’s energy policies. Ron DeSantis pointedly remarked on the economic ramifications of Europe’s commitment to green energy, suggesting that it could undermine their economy and security.
The reliance on renewables has led to unforeseen issues, prompting Germany to resume operations of coal-powered plants to meet its energy needs. Reports indicate that fossil electricity production in Germany rose by 10% in the first half of 2025. Wind power, despite being the leading power source, saw a decline in output due to unfavorable conditions. In this context, coal has remained a significant contributor to the energy mix.
President Trump’s warnings about the dangers of green energy policies echo a growing concern among critics. During his speech at the United Nations, he asserted, “If you don’t get away from the green energy scam, your country is going to fail.” His assertion about the potential collapse of countries that continue on this path resonates, especially as economic growth in the European Union lags behind that of the United States.
In the third quarter of 2025, the EU’s GDP grew at merely 1.4%, far below the U.S. growth estimate of 3.9%. Critics argue that Democrats aim to emulate Europe’s strategy in the U.S., risking higher energy costs and diminished economic opportunities. Thankfully, resistance has emerged from Republicans and some moderate Democrats, preventing what they call the Green New Deal catastrophe.
The economic ramifications in places like California, where utility costs are among the highest in the country and unemployment rates are alarming, serve as a cautionary tale. The trajectory is clear: as Trump works to boost American energy production, a path toward lower prices and economic growth may emerge, contrasting sharply with the challenges faced by European counterparts.
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