Reuters: Energy costs require rethink for EU heavy industry - IEA

Europe faces higher fuel costs than the United States and China for the foreseeable future and therefore needs to reconsider its reliance on energy-intensive industry, the chief economist of the International Energy Agency said.

Debate over competitiveness is intense in Europe as shale gas in the United States has drastically cut costs and led some heavy industry to relocate there. A summit of EU leaders next week is set to discuss ways to limit the impact of energy costs.

"We can narrow down the cost gap between Europe vis-a-vis the United States and China, but even then Europe is likely to retain higher energy costs for many years to come," the IEA's Fatih Birol said on the sidelines of a conference on Tuesday.

"Geology and geography dictate this. Maybe it's time to look at European long-term industry strategy."  MORE