AI SUMMARY – What You Should Know Before Reading:
- Czech Prime Minister Andrej Babiš used an informal EU summit to defend combustion-engine vehicles and nuclear energy.
- He sharply criticized the European Union’s Emissions Trading System (ETS), citing far higher CO₂ prices than previously forecast.
- Babiš warned that key European industries — including steel and chemicals — are under significant competitive strain.
- Prague plans to send formal proposals to the European Commission outlining suggested reforms.
BILZEN-HOESELT, BELGIUM — At an informal summit on European competitiveness held at the Alden Biesen castle, Czech Prime Minister Andrej Babiš delivered one of the most outspoken interventions of the gathering — calling for the European Union to defend internal combustion vehicles and expand its embrace of nuclear energy while overhauling the bloc’s Emissions Trading System (ETS).
The summit brought EU leaders together to debate how to bolster Europe’s economic strength amid increasing global competition, particularly from China and the United States. Summit discussions ranged across regulatory reform, investment policy and capital markets, but Babiš’s remarks focused on areas where he believes current EU strategies are undermining industrial competitiveness.
ETS Under Fire
One of Babiš’s central criticisms was aimed at the EU’s carbon pricing mechanism, ETS 1. He presented forecasts reportedly produced by the European Commission in 2020 that projected carbon prices of €26.50 in 2025 and €30 in 2030. In contrast, Babiš highlighted that average carbon prices today hover near €85 — a figure that, in his telling, places the EU today on a trajectory that was not meant to appear until 2042 under earlier Commission scenarios.
Babiš also cited a report from the European Securities and Markets Authority indicating that financial institutions and speculators have a growing presence in carbon markets. According to the Czech premier, this dynamic has escalated costs for industry and contributed to declines in competitiveness across key manufacturing sectors.
“The balance for European industry stands at minus €159 billion,” Babiš told reporters after the summit’s formal sessions.
Industrial Decline and Global Competition
Babiš contended that the EU’s regulatory burden has contributed to significant contractions in its industrial base. Citing comments made by former European Central Bank President Mario Draghi, Babiš pointed to data suggesting about 15% reductions in steel production and 10% declines in chemical production within the EU over recent years.
Against that backdrop, Babiš took aim at EU plans to phase out the sale of new internal combustion engine vehicles by 2035 — a key element of the bloc’s green transition. He insisted that conventional vehicles, which European automakers have worked for decades to make cleaner and more efficient, should not be abandoned. “They are regular cars,” he said. Babiš argued that Europe cannot realistically compete with Chinese industry in the electric vehicle market without jeopardizing jobs and economic vitality.
Nuclear Energy and Europe’s Energy Mix
Energy policy was another focal point of Babiš’s address. He stressed that for many Central European states — including his own — nuclear energy remains a critical component of reliable, low-carbon power supply. “Each country has its own energy mix,” Babiš explained, noting that the Czech Republic lacks easy access to maritime-based renewables and thus must rely on nuclear.
He also called for stronger investment in European energy infrastructure: so-called “energy highways” linking power grids, particularly with neighbors such as Germany and Poland, to enhance connectivity and resilience across the bloc.
Babiš said he plans to attend a nuclear-focused summit on March 10 convened by Emmanuel Macron of France, where he will advocate for stronger recognition of nuclear power within EU climate and energy policy.
A Growing Policy Divide
While the EU summit did not issue unified conclusions, Babiš’s comments underscored enduring tensions within European policymaking between climate ambition and industrial competitiveness. Some member states prioritize aggressive decarbonization and rapid adoption of renewables, while others — particularly in Central Europe — urge a more balanced approach that preserves traditional industry and energy sources.
Prague plans to send a detailed letter to the European Commission outlining its recommendations for reforming the ETS and related policies aimed at strengthening the EU’s industrial base.
The debates at the Bilzen-Hoeselt summit are likely to shape EU policy discussions in the lead-up to formal legislative sessions and budget negotiations, particularly on issues related to carbon pricing, energy security and the future of automotive manufacturing.