Eco Austria Annual Report 2022 presents key measures to tackle the energy problem and skills shortage
Prof. Dr. Monika Köppl-Turyna
Director
The recently published report by the economic research institute EcoAustria highlights the most important economic developments in Austria over the past year. The biggest challenges in 2022 included rising energy prices, high inflation and long-term problems such as demographic change, climate change and the shortage of skilled workers.
The outbreak of the war in Ukraine led to significant price increases for gas and electricity in Europe. Gas prices peaked at over EUR 230/MWh in August 2022, five times higher than in the previous year. This development also affected electricity prices, as the cost of generating electricity is closely linked to gas prices. In comparison, US companies had to contend with significantly lower price increases in 2022. This led to significant cost and price advantages for the manufacturing sector in the USA compared to European industry.
Although European gas and electricity prices have stabilized again after the extraordinary increase in the winter months of 2022/2023, they are still significantly higher than in previous years and the prices in the USA. According to forecasts, prices will remain high in the future, as the chart above illustrates. Europe's competitive disadvantage in the energy sector will therefore continue. In order to at least mitigate the loss of competitiveness of European industry, the European Union should make the availability of low-cost energy one of its top priorities.
"Renewable energy sources offer considerable potential for the provision of cost-effective energy. The expansion of wind energy in the north, photovoltaics in the south and efficient distribution across the continent are urgently needed. This also includes a functioning integration into the electricity markets and an expansion of grid capacities and hydrogen networks to enable the exchange of energy between EU member states," says EcoAustria Director Monika Köppl-Turyna.
In order to successfully tackle the challenges associated with energy issues and the shortage of skilled workers, better framework conditions are required in favor of greater innovative capacity in important economic sectors, such as the automotive industry. "The focus here should be on resolute deregulation, binding integration, tangible relief and a credible openness to technology. This is the only way we can guarantee the energy supply of the manufacturing sector and achieve the EU's climate protection goals," emphasizes Köppl-Turyna.
