EU leaders split on energy prices as costs threaten competitiveness

European Union leaders meeting in Brussels on October 15-16 are divided over measures to lower energy prices, as soaring fuel and electricity costs undermine their competitiveness efforts and fuel inflation. The EU's long-term strategy, set after the 2022 energy shock, focuses on diversifying suppliers, reducing demand, and electrifying the economy using carbon pricing. However, leaders lack short-term tools and remain split on immediate action. The bloc still purchases Russian gas, weakening its response to a recent Trump-Putin agreement on diesel, while high energy costs threaten European businesses competing against Chinese rivals.