Getting a Handle on Energy in Europe (Implications for the European Union)

How well is Europe positioned to take advantage of lower oil prices to strengthen its economic growth and global competitiveness? In the coming years, lower oil prices have the potential to be either a deterrent to or an enabler of faster productivity growth and greater competitiveness. Much will depend on how businesses deal with the expected volatility of price movements. When we explore four plausible scenarios, we find that Europe faces a strategic choice in various sectors—it can prop up existing structures or undertake much-needed restructuring.

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