European energy policy and industrial competitiveness of member states

Energy, Competitiveness and the One Market Act: Why Europe Is Changing Industrial Rules

In recent months, Italy and Germany have opened a direct discussion on an issue that goes far beyond energy policies:
Europe’s ability to remain an industrial continent.

Behind seemingly institutional terms — technological neutrality, competitiveness, single market — a crucial decision is actually being made about where things will be produced over the next 20 years.

This is not an abstract matter: it concerns factories, investments, jobs and production continuity.

The Problem: Not All European Industries Start from the Same Point

Today, a European company does not compete only on product quality or innovation.

It also competes — and often above all — on energy costs.

If two companies produce the same component but:

  • one pays €80/MWh for energy

  • the other pays €160/MWh

it is no longer a technological competition.
It becomes a cost structure competition.

And this is precisely where the European issue arises:
the single market exists for goods and regulations… but not for energy.


Why Industrial Competitiveness Depends on Energy

In recent years, many European companies have started relocating production outside Europe.

Not because Europe has lost expertise.

But because industrial costs have become unpredictable.

A modern production plant requires:

  • operational continuity

  • multi-year planning

  • long depreciation cycles

  • energy stability

If energy costs change radically from country to country or from year to year, investment becomes a financial risk rather than an industrial one.

And when risk increases, capital moves.


Technological Neutrality: What It Really Means

One of the central points in the European debate is so-called technological neutrality.

In simple terms:

Europe no longer wants to impose a single energy solution for everyone.

Because industry is not uniform.

A steel plant, a data center, and a food production line do not have the same energy profile.

For this reason, the new policy direction aims at:

  • renewables where they work best

  • nuclear where it guarantees stability

  • hydrogen where it is efficient

  • gas where continuity is needed

This is not a return to the past.
It is an attempt to avoid a typical industrial policy mistake: applying one single rule to different systems.


One Market Act: The Real Objective

The European project aims to create a truly unified industrial market.

Not only free trade, but similar production conditions.

In practice:

a company should be able to decide where to invest in Europe without the choice depending solely on the energy bill.

To achieve this, three elements are needed:

  • more predictable energy

  • harmonized industrial rules

  • coordinated incentives among countries

Only in this way can Europe compete with continental-scale economies such as the United States and China.


What Changes for Companies

If the plan works, it will change the way production itself is managed.

Today, many companies operate in a defensive logic:
they intervene when something breaks.

Tomorrow, the logic becomes strategic:
production continuity becomes part of the competitive advantage.

When energy is stable and predictable:

  • investments return

  • production lines remain in Europe

  • maintenance becomes planning

  • downtime becomes a real economic risk

Not just a technical one.


The Real Issue: Where Production Will Take Place in the Future

Europe’s energy issue is not only about environmental sustainability.

It concerns the future industrial geography.

A continent that cannot produce steadily inevitably becomes dependent on those who can.

This is why the debate between Italy and Germany is not political:
it is industrial.

And the One Market Act is, first and foremost, a project of productive sovereignty.


Conclusion

In the coming years, the winner will not be the one with the most “perfect” energy, but the one with the most reliable energy.

Because in global industry, true innovation is not producing better once.

It is being able to produce consistently.


🟢 Content Page Article on production continuity linked to European energy policy, which can determine competitive advantages among industries in different Member States

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