Acceso usuarios
Carlo Stagnaro
The Draghi Report offers a critical assessment of Europe’s energy markets, with particular focus on electricity and natural gas: price dynamics are primarily the result of poorly designed climate policies and structural inefficiencies in energy market regulation and design. This article focuses on Draghi’s observations on energy markets and argues that, while the report makes a compelling case for removing the root causes of high energy prices, rightly emphasising the relevance of high energy prices for the competitiveness of European firms, its discussion of the root causes thereof is not always backed by the available evidence, and some of the proposed solutions are unlikely to result in lower prices. A more coherent policy framework that focuses on setting clear environmental goals, while allowing market mechanisms to determine the optimal technological pathways, would better balance sustainability with economic efficiency and long-term competitiveness.
