The ongoing crisis in the Middle East has imposed an estimated €45 billion ($52 billion) cost on European economies, according to a senior European Commission official, highlighting growing concerns over energy security, public finances, and economic resilience across the bloc.
Speaking at the European Sustainable Energy Week, Céline Gauer, the newly appointed Director-General for Energy at the European Commission, said the financial impact of recent geopolitical tensions is placing significant pressure on EU member states.
Gauer noted that since 2022, Europe has increasingly focused on strengthening resilience and competitiveness, but current global challenges have intensified the need for urgent action.
“The crisis is putting public finances in many member states under considerable strain,” she said.
She stressed that reducing dependence on fossil fuels remains a top priority for the European Union. According to Gauer, accelerating the electrification of economies is essential for improving energy security and long-term competitiveness.
She identified predictability, investment, and policy reforms as the three pillars needed to support the energy transition. Gauer added that investments deliver stronger results when combined with structural reforms, citing lessons learned from post-pandemic recovery efforts.
The conference also highlighted growing cybersecurity concerns within the energy sector. Mechthild Wörsdörfer, Deputy Director-General for Energy at the European Commission, said digital technologies are transforming energy systems but also creating new vulnerabilities.
“Energy security is no longer only about physical infrastructure. Today it also depends on software, digital networks, and connectivity,” she said, describing cybersecurity as a critical foundation for a secure and competitive energy supply chain.
The European Commission recently unveiled a strategic roadmap focused on digitalisation and artificial intelligence in the energy sector. The initiative aims to support more efficient energy systems while addressing rising costs and geopolitical pressures affecting businesses and consumers.
According to Commission estimates, AI-driven operation and maintenance technologies could generate annual savings of up to €94 billion ($110 billion) by 2035.
