It has already been the eleventh month since Russia invaded Ukraine. Perhaps the European Union (EU) is not experiencing military conflicts, but a major economic and energy war. And so far, it’s holding out longer than many predicted at the start of the war.

An integral part of the EU. this is her industry. Even before the war, the Union was trying, balancing between climate goals and the desire to maintain the level of well-being, to give a new impetus to industrial activity, striving to achieve by 2030 its contribution to 1/5 of the Union’s GDP. This was followed by the war and the aggravation of the energy crisis, which together hit European industry hard. Energy costs skyrocketed, markets were closed to European goods, and inflationary pressures soared.

Nevertheless, Eurostat data show a remarkable resilience of industrial production in the EU. In September 2022, total industrial production increased by 4.9% compared to September 2021. The same phenomenon was observed – to about the same extent – in August. In fact, the industry has largely contributed to the reduction of natural gas consumption in the European Union. The goal set by the Union in the summer to reduce emissions by 15% has been exceeded in most member countries. Good autumn weather may have helped, but there have also been upfront savings, especially under the weight of astronomical gas prices.

Hey, how’s the industry? Against! First, the overall picture hides individual aspects. Energy-intensive industries in Europe have been hit hard, with several foundries and fertilizer plants shutting down production in recent months. In the Eurostat tables, the industrial sector of intermediate goods, which also includes the production of metals, has shown a constant decline since June. In addition to the previous months, we are also interested – more – in the coming ones. In a survey conducted by the German Ifo institute last October, three out of four German manufacturing companies said they had achieved reductions in gas consumption in the previous six months without cutting production. But in the same poll, less than four in ten said they could achieve another cut in the coming months without cutting back on production.

In September 2022, total industrial production increased by 4.9% compared to September 2021.

So it is clear that difficult times are ahead. The very high cost of energy puts European industry at a disadvantage compared to global competition. In order to successfully overcome the coming months and the next 1-2 years, support is needed at the EU level, as well as coordination of national political assistance, so that in the Union there are no industries of some countries that are more equal than others. …

The current trend in all major advanced economies is to increase support for domestic companies to become pioneers in the technologies, materials and services needed for the green transformation of the global economy. The US government is throwing its weight there, causing confusion in relations with Europe, China is doing the same, Korea has announced a similar program. The European Union is characteristically late in this area. We hope that the (big) bell rang with the introduction of the US Inflation Reduction Act will quickly lead to a rise in the EU. in the development and adoption of an appropriate program – to ensure that European industries are at the forefront of the green transition. And to ensure that Zeitgeist works for the benefit of the continent where it was formulated, and not just for the benefit of other economic forces.

* Mr. Haris Dukas is a Professor at NTUA and Mr. Giorgos Stamtzis is an engineer with a PhD from the University of Duisburg-Essen.