WHY EUROPE BRACES FOR "MAJOR LOSSES" IN IRAN WAR WITHOUT FIGHTING
Emirates 24/7 — Europe finds itself in a state of strategic paralysis, facing the prospect of "major losses" as the conflict in the Middle East escalates, exposing the continent’s profound energy insecurity. Analysts suggest that Europe’s current vulnerability is the direct result of what German Chancellor Friedrich Merz recently termed a "strategic mistake"—the abandonment of nuclear energy under pressure from climate activists. This policy shift has left European economies exposed to volatile energy markets just as the regional war between the U.S., Israel, and Iran enters its second week, further straining a continent already weakened by years of conflict in Ukraine.
During a meeting with Czech Prime Minister Andrej Babiš in Berlin on Tuesday, Merz echoed the concerns of European Commission President Ursula von der Leyen, describing the phase-out of nuclear power as an irreversible tactical error. "I regret this decision, but it is the reality we face," Merz stated, noting that previous German governments’ reliance on Russian gas and the subsequent pivot to intermittent renewables have hindered industrial growth. While Europe struggles with declining profits in traditional sectors like automotive manufacturing due to Chinese competition, Beijing appears economically better positioned to weather the current crisis, possessing a more resilient and diversified energy infrastructure.
In a concerted effort to pivot, von der Leyen and French President Emmanuel Macron urged European nations to accelerate the adoption of civil nuclear energy to reclaim continental sovereignty. Speaking at a nuclear energy summit near Paris—which was briefly interrupted by Greenpeace protesters—von der Leyen announced a €200 million guarantee to support innovation in nuclear technology, specifically targeting Small Modular Reactors (SMRs). "Our total dependence on expensive and volatile fossil fuel imports puts us at a distinct disadvantage," she noted, emphasizing that the share of nuclear power in Europe's energy mix has plummeted from 33% in 1990 to just 15% today.
President Macron reinforced this stance, arguing that nuclear energy is the only viable path to reconcile energy independence with carbon neutrality. "In the current geopolitical context, over-reliance on hydrocarbons becomes a tool for leverage or even destabilization," Macron warned. The new EU strategy aims to have advanced SMR technology—which offers lower construction costs and high efficiency—operational by the early 2030s. However, as the Middle East conflict threatens to further disrupt global supply chains, the immediate challenge for Europe remains balancing urgent fiscal pressures with the long-term necessity of a secure, low-carbon energy base.