Europe must narrow energy price gap with its rivals

Over the last three years, the EU has concentrated largely on financial stability and reducing fiscal deficits and debt.

Now, with financial tensions easing and confidence returning, Europe’s leaders should shift their focus back to the real economy and the industrial base. February’s meeting of the European Council of Ministers will be a good place to start.

Investment in manufacturing — historically one of the main drivers of growth in Europe — holds the key to revitalising the economy. Over the last decade, industrial policy has been sidelined in favour of the financial and service sectors. Manufacturing was deemed a pursuit of the past, and Europe was no longer considered a suitable location for competitive industry.