The European Union has acknowledged that its long-standing retreat from nuclear power may have been a major strategic miscalculation. Speaking at the Nuclear Energy Summit in Paris, Ursula von der Leyen, President of the European Commission, admitted that Europe’s decision to scale back nuclear energy over the past three decades was a “strategic mistake.”
Her remarks signal a significant shift in Europe’s energy strategy as the bloc now seeks to revive nuclear power to address rising energy costs, geopolitical risks, and climate goals.
EU’s Nuclear Decline Over Three Decades
According to von der Leyen, nuclear energy once played a crucial role in Europe’s power mix. In 1990, nuclear plants generated nearly one-third of the European Union’s electricity. Today, that figure has dropped to roughly 15%.
“In retrospect, we see that it was a strategic mistake for Europe to turn its back on a reliable and affordable source of low-emission power,” von der Leyen said during her address.
For decades, several European countries phased out nuclear energy due to safety concerns, political pressure, and the push toward renewable energy sources like wind and solar. However, critics argue that abandoning nuclear capacity has left Europe vulnerable to energy price shocks and increased reliance on imported fuels.
EU Launches €200 Million Nuclear Support Fund
In an effort to reverse course, the European Commission announced a €200 million ($230 million) guarantee fund aimed at supporting the development of small modular reactors (SMRs). These next-generation nuclear reactors are designed to be safer, more flexible, and cheaper to build than traditional large-scale nuclear plants.
Von der Leyen emphasized that Europe has the technological expertise and industrial capacity to lead in this new nuclear race.
“The nuclear race is on,” she said, adding that Europe must accelerate investment and innovation to deploy SMRs by 2030.
SMRs are seen by many energy experts as a potential solution for countries seeking reliable low-carbon electricity while meeting ambitious climate targets.
Energy Crisis Driving Policy Shift
Europe’s reconsideration of nuclear energy comes amid growing energy pressures. The continent has been grappling with high energy prices following the breakdown of its energy partnership with Russia after the Russia-Ukraine War.
Additionally, escalating tensions in the Middle East—including conflict involving Iran, the United States, and Israel—have pushed global oil and gas prices higher, intensifying Europe’s search for stable energy sources.
The combination of geopolitical instability and energy shortages has forced policymakers to rethink earlier decisions to rapidly phase out nuclear energy.
Germany’s Costly Energy Transition
One of the most prominent examples of the nuclear phase-out is Germany, which shut down its last three nuclear power plants in 2023.
German Chancellor Friedrich Merz has also criticized the decision, calling it a “serious strategic mistake.” According to Merz, Germany is now facing one of the most expensive energy transitions in the world.
Recent analysis by JPMorgan Chase revealed that industrial electricity prices in Germany are now roughly three times higher than those in the United States and China, putting significant pressure on European manufacturers.
Economic Impact on European Industry
The consequences of rising energy costs are already visible across Europe’s industrial sectors. A report commissioned by Deloitte for the European chemical industry found that 83% of EU competitiveness indicators are stagnating or worsening.
The study also highlighted a significant loss of industrial jobs, with the chemical sector alone shedding approximately 20,000 positions due to plant closures and reduced production.
High energy costs have become a major concern for businesses, prompting warnings that Europe could lose more manufacturing capacity to regions with cheaper electricity.
Growing Political Debate
The EU’s energy strategy continues to face criticism from political leaders across the continent. Former Polish Prime Minister Mateusz Morawiecki described Brussels’ ambitious climate targets for 2040 as “economic suicide,” arguing they could damage Europe’s industrial competitiveness.
Meanwhile, Hungarian Foreign Minister Peter Szijjarto has warned that maintaining sanctions on Russian energy could inflict severe economic harm on the European Union.
Russian officials have also weighed in on the debate. Kirill Dmitriev recently claimed that Western efforts to isolate Russia’s energy sector have backfired, suggesting that countries maintaining energy partnerships with Moscow made a more strategic choice.
Europe’s Energy Future
Despite political divisions, the European Commission’s renewed focus on nuclear energy reflects a broader realization: achieving energy security while meeting climate goals may require a balanced mix of renewables and nuclear power.
With plans to invest in next-generation reactors and expand nuclear capacity, Europe is now attempting to rebuild an industry it once moved away from.
Whether this shift will restore Europe’s energy competitiveness remains uncertain, but one thing is clear—after decades of decline, nuclear power is once again at the center of Europe’s energy debate.
