Europe losing ground in race for economic power, warns Metsola
European Parliament President Roberta Metsola has sounded a stark warning about the EU's vulnerability to energy shocks, telling EU leaders that the bloc risks being left behind unless it acts with far greater urgency on competitiveness [1].
"Europe risks falling behind not because it lacks ideas, but because it lacks urgency," Metsola told heads of state and government at a European Council summit in Brussels [1]. "If Europe wants to speak the language of power, we must be established and seen as an economic force."
Her remarks come as escalating tensions between Iran and Israel have sent shockwaves through global energy markets. Direct strikes on energy infrastructure across the Gulf region—one of the world's main supply hubs—have disrupted shipping and sent oil prices soaring past €119 per barrel [1]. Analysts are warning that prices could reach €150 or higher if the conflict continues.
Supply disruptions raise alarm bells
The Strait of Hormuz, through which approximately one-fifth of the world's oil supply passes, has seen attacks on tankers and infrastructure in recent days, causing significant shipping disruptions [1]. The ripple effects are already being felt across Europe, with gas prices surging and global markets becoming increasingly volatile.
"Billions have already been added to Europe's import bill in recent weeks, and further increases are expected if disruptions in the Gulf continue," Metsola warned [1]. The energy shock has also prompted central banks to reassess inflation risks.
Metsola linked Europe's economic resilience directly to its geopolitical credibility, emphasising that the EU must move beyond structural weaknesses. She pointed to concerns highlighted in the Draghi Report on EU competitiveness and the EU Competitive Compass, which identify fragmentation, weak investment and slow execution as key risks [1].
Malta stepping up on energy security
Back home, the Maltese Government has moved to reassure households and businesses amid the turbulence. Prime Minister Robert Abela reaffirmed the Government's commitment to shield locals from volatile energy prices, with stabilising domestic energy costs remaining a top priority [1].
Minister Miriam Dalli outlined an ambitious strategy to insulate Malta from global market disruptions. The Government is investing in grid reliability, storage systems and the second interconnector to Sicily to ensure a stable supply [1]. Plans also include expanding renewable energy capacity, including offshore wind projects and battery storage systems, aimed at reducing dependence on imported fuels [1].
EU must act now, Metsola insists
At the European level, Metsola called for faster delivery of core economic reforms, including simplified rules on artificial intelligence, chemicals and mid-sized companies, while reducing fragmentation in the Single Market [1]. She said the forthcoming "One Europe, One Market" roadmap must include concrete actions, timelines and measurable targets [1].
The message is clear: Europe's economic future depends on investment and supporting high-risk, high-impact technologies. Without swift action on competitiveness and energy security, the bloc risks slipping further behind on the world stage.