“Europe is a talented, but diminishing pupil,” says MOL’s Managing Director

György Bacsa, Managing Director of MOL Hungarian Oil and Gas Plc., gave a presentation on energy policy and economic growth at the Macronomx Meetup conference, writes Index.

“Europe is a talented, but diminishing pupil,” he said, noting that while the car industry, which constitutes six percent of European industry, has been a major player, it has struggled since the Volkswagen scandal.

If European industry does not remain competitive, we will not achieve anything in the area of greenhouse gas emissions,”

he emphasized, pointing out that an overheated regulatory framework is currently burdening the European economy. Additionally, sanctions and war policies have led companies to focus on building up reserves.

“Europe is a leader in reducing greenhouse gas emissions, but it is facing increasingly poor economic performance,” Mr. Bacsa continued. He highlighted that while China accounts for 29 percent of global carbon emissions, Europe contributes only seven percent.

György Bacsa also observed that the average age of cars in Europe is increasing, and the region’s once-leading car industry is now considered globally as a B category. He noted that companies are relocating their operations to other regions, which not only weakens European industry but also negatively impacts global climate policy.

The main reason for the loss of competitiveness in Europe is the lack of integration of the financial, energy, and communications sectors,”

MOL’s CEO Enrico Letta was quoted as saying. Mr. Bacsa added that the next European Commission and parliament should focus on developing a competitive industrial policy. He argued that a complete phase-out of traditional energy sources is unrealistic given the growing global energy demand, as no fossil energy sources are likely to be fully substitutable in the near future.

Via Index; Featured Image: Facebook / MOL