Commentary Despite an endless chain of monetary and fiscal stimuli, the eurozone consistently disappoints in growth and job creation. One of the reasons is demographics. No monetary and public spending stimulus can offset the impact on consumption and economic growth of an aging population, as Japan can also confirm. However, there’s an especially important factor that tends to be overlooked: the lack of competitiveness of the eurozone industry due to rising and non-competitive power prices. Residential electricity prices in the European Union (EU) between 2010 and 2014 were on average around $240 per MWh compared to an average of nearly $120 per MWh in the United States. Gasoline prices were also twice as expensive on average in the EU compared to the United States (pdf). This trend has not improved. In 2020, the average residential consumer’s electricity price in Europe showed an increase of 13 percent over the average price …
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