Brussels is considering short-term measures to lower energy costs for industry, according to a document obtained by Reuters on March 8, 2026. The European Commission is examining potential changes to energy taxes, network fees, and carbon emission costs as concerns mount over the competitiveness of European manufacturers.
The move comes amid warnings from businesses that high energy prices are threatening their ability to compete with firms in China and the United States. Rising oil and gas prices, exacerbated by tensions in the Middle East, are adding to the pressure, according to the Commission’s assessment.
European Commission President Ursula von der Leyen is expected to present proposals at a scheduled EU summit in Brussels on March 19. The Commission is aiming to support the economy without undermining existing climate regulations designed to transition to a cheaper and low-emission energy system.
The Commission’s document indicates a potential “bridging solution” may be needed to lower energy prices in the short-term, while longer-term energy transformation efforts take effect. This acknowledges that the transition to a fresh energy system will take time to deliver tangible price reductions.
The proposals follow the unveiling of the Industrial Accelerator Act (IAA) on March 4, 2026, designed to strengthen European industry in the face of competition from China. The IAA includes a “Made in EU” principle for public procurement, requiring companies seeking public funds to meet minimum thresholds for EU-produced components. The Commission aims to increase the manufacturing sector’s contribution to the EU’s GDP to 20 percent by 2035, up from approximately 14 percent in 2024.
According to the Commission, approximately 600,000 jobs are at risk over the next decade if the current industrial decline continues. The IAA and the energy cost mitigation measures are presented as efforts to prevent job losses and bolster the EU’s industrial base.
The Commission is also analyzing the possibility of changes to the SAFE program, though details remain unclear. The Commission has not yet responded to requests for further information regarding the specific measures under consideration or the potential impact on individual member states.
