From Green Deal to Smart Deal: Romania and Europe must prioritize safe, affordable, and green energy

Romania and Europe need safe, affordable, and green energy, in that order of priorities. The transition must continue, but smartly and without sacrificing the security or prosperity of our citizens. It is unwise to support a shock therapy approach, as we risk collapsing the European economy, a patient that is already feeling worse and worse.
This was my stance during my first term as Minister of Energy, and it will remain so during this term. I am surprised by the surprise of those who think my messages about the “Green Deal” came out of nowhere, even though I have been saying these things for over a year and a half.

And now, these realities are beginning to be expressed more and more across Europe. Just yesterday, Donald Tusk proposed a large-scale deregulation campaign at the European Union level, emphasizing the need to reduce energy prices to allow European companies to remain competitive on global markets. It is useless to protect the environment if we are heading towards economic collapse. A few days ago, Ursula von der Leyen, President of the European Commission, expressed the same need to reduce energy prices in Davos, so the European economy can cope with the intensifying global competition.

The key to a successful transition is simple:

• Safe and cheap energy production. We must not abandon coal plants until we have something in place — short and medium term, gas plants; long term, nuclear plants.
• Investments in storage to benefit from green energy even when the sun or wind is not available.
• Investments in grids to have a truly unique and functional European market and to accommodate more green energy producers (including prosumers).
• Use equipment manufactured in Romania and Europe, not subsidize production from other parts of the world with European funds.

We are already doing what is necessary not only to be an energy producer but also a producer of modern equipment, so we are no longer dependent on others. We have signed seven financing contracts worth a total of approximately 169 million EUR, covering a capacity of over 5 GW. This involves the production of components for storage batteries, production of storage batteries, and production of photovoltaic panels and their components. Made in Romania.

While the European Union rushes to become a world leader in decarbonization through the Green Deal, the global economic reality shows us that this model risks leading to the loss of competitiveness and economic relevance. 80% of the supply chain for photovoltaic panels is controlled by China, and Europe subsidizes their installation instead of investing in local manufacturing. With all the risks involved in energy security.

High energy costs are another example of a self-imposed burden. The CO2 emission certificate and the marginal price mechanism artificially double energy prices and make our industries uncompetitive. While energy prices in the EU are three times higher than in the US or China, European factories are closing or relocating to other regions. This is not just an alarm bell but an unfolding economic tragedy.

Globally, Europe is losing ground alarmingly. In 2000, the EU’s GDP accounted for about 34% of global GDP. Today, its contribution has fallen below 15%, and this decline continues. No European company is among the top 20 in the world by market capitalization, and investments in research are far lower than in the US or China. Google alone invests more in research than all the European armies combined.

However, Romania has the chance to show that there is another way. We have natural gas, hydroelectric plants waiting to be completed, nuclear projects in partnership with strategic allies, and the potential to become a regional leader in green energy production (the second largest potential in the EU, after Spain). All we need is political will and bold decisions that prioritize the well-being of people.
Europe must understand that economic prosperity and innovation do not come from excessive regulations or policies that directly subsidize other economies. We need an economy based on local production, well-paid jobs, and supporting the domestic industry.

It is time for all of Europe to redefine its priorities and opt for a “Smart Deal” that will bring us back onto the global economic map. Forward, together, for Romanians, Romania, and a competitive Europe.