Europe’s dependence on imported fossil fuels poses a growing risk to price stability, according to a recent ECB blog post by Executive Board member Frank Elderson. The author notes that energy price shocks have shifted resources out of Europe, led to emergency interventions and strained public finances, making it harder for the ECB to achieve its primary mandate of price stability. Elderson argues that meeting clean‑energy targets would weaken the link between volatile global markets and domestic prices. He cites Spain’s shift to renewable power as an example, where wholesale electricity prices were roughly 40 % lower than they would have been at 2019 levels. While the European Commission estimates €660 billion of annual investment is needed between 2026 and 2030, the blog stresses that such investment replaces fossil‑fuel spending and offers long‑term cost savings and health benefits. The post concludes that the necessary tools and policy certainty are already in place.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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