Europe faces a mounting energy crunch with gas and petrol prices hammering households and industries alike. While the UK government encourages steady nerves, the EU executive is pressing for more home working and less travel to ease the burden.
Middle East tensions could make matters worse, reminiscent of the 2022 cost-of-living battering from Russia’s Ukraine invasion that fuelled rampant inflation.
With more than half of its energy imported, mainly oil and gas, the continent stays vulnerable to supply hiccups and market surges, as outlined in the IEA’s latest outlook. France stands out, generating 65% of its electricity from nuclear plants to keep bills low; Germany’s rates next month might soar five times higher. Spain’s heavy bet on wind and solar delivers cheaper power than gas-dependent Italy, where costs could double by year-end.
Germany’s post-Fukushima nuclear exit has left its car and chemical giants exposed, slashing 2026 growth forecasts to 0.6% GDP amid gas hikes. A nuclear comeback is underway: Italy plans to scrap its long ban, Belgium reconsiders phase-outs, Greece debates compact designs despite quakes, and Sweden reverses old policies.
In the UK, Chancellor Rachel Reeves said, “To build national resilience, drive energy security and deliver economic growth, we need nuclear.” Scottish support now tops 50%, per YouGov.
France leads the charge, with President Emmanuel Macron stating, “nuclear power is key to reconciling both independence, and thus energy sovereignty, with decarbonisation, and thus carbon neutrality,” tying it to AI’s power needs.
At the Paris summit, Commission President Ursula von der Leyen called Europe’s nuclear retreat a “strategic mistake,” noting output’s drop from 33% in 1990 to 15% today.
Yet hurdles abound. Projects like Hinkley Point C face huge delays and overruns, while ageing plants demand vast upkeep. Small modular reactors promise quicker wins for AI and hydrogen, backed by EU funds targeting the 2030s, but none are licensed yet.
Nuclear offers mid-term hope against fossil reliance, though short-term fixes remain scarce.