Faced with new energy shock, Europe asks if reviving nuclear is the answer

European households and businesses are grappling with surging gas costs and petrol prices. While the UK government has urged calm, the European Commission has advised reducing travel and working remotely. Policymakers caution that the situation could worsen, especially if tensions in the Middle East escalate further.

The Energy Dilemma

Europe’s current energy challenges echo past crises, notably the cost-of-living struggles following Russia’s invasion of Ukraine. This has reignited discussions about achieving energy independence. Nuclear energy, once sidelined, is now considered a viable component of a locally sourced European energy strategy.

At the recent European Nuclear Energy Summit in Paris, Commission President Ursula von der Leyen criticized the continent’s retreat from nuclear as a “strategic mistake.” In 1990, nuclear supplied roughly a third of Europe’s electricity, but that share has dwindled to 15%, leaving the region reliant on costly and fluctuating fossil fuel imports. Europe imports over 50% of its energy, primarily oil and gas, making it susceptible to supply shocks or price spikes.

A Shift in Perspective

Gas prices are rising uniformly across Europe, yet electricity costs differ based on national energy sources. Spain, with heavy investments in wind and solar, forecasts electricity prices for the rest of 2026 at about half those in Italy, where gas dominates pricing. France remains the EU’s largest nuclear producer, generating around 65% of its electricity from this source. German prices for next month are five times higher than in France, highlighting the disparity.

Germany’s decision to phase out nuclear post-2011 Fukushima disaster left its energy-intensive industries, such as automotive and chemical sectors, heavily dependent on gas. This week, Berlin’s top economic research institutes slashed their 2026 growth projections to 0.6% of GDP, citing global gas price surges.

Reviving Nuclear

Renewed interest in nuclear power is evident across Europe. “To build national resilience, drive energy security and deliver economic growth, we need nuclear,” stated Reeves. New YouGov polling indicates growing support for nuclear in Scotland, with most citizens now endorsing it as part of the country’s energy plan.

France, a staunch advocate for nuclear, has emphasized its role in advancing decarbonization. President Emmanuel Macron highlighted nuclear’s potential to balance energy sovereignty with carbon neutrality. He also linked it to meeting increased demand from AI, suggesting nuclear could support data centers and computing infrastructure.

Germany, once resistant to nuclear’s inclusion in EU legislation, has since removed its anti-nuclear bias. Some speculate this shift relates to defense concerns sparked by strained relations with the Trump administration. Berlin has asked France to expand its nuclear deterrent to other European partners, a proposal France recently accepted.

A Cautionary Note

Despite optimism, nuclear is not a quick solution. Development requires long-term investment, and its reliability and safety remain subjects of debate. While it offers a pathway to energy independence, challenges persist in scaling up production and addressing public concerns.