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

Across Europe, families and industries are grappling with soaring gas prices and petrol costs, creating a sense of unease. While the UK government has advised citizens to remain composed, the European Commission has pushed for remote work and reduced travel to ease pressure on energy demand. Policymakers caution that the situation could deteriorate further, particularly if geopolitical tensions in the Middle East intensify.

A return to energy independence

Europe’s recent energy struggles have rekindled debates about energy autonomy. The continent’s reliance on imported fossil fuels has made it vulnerable to supply shocks, as seen with Russia’s energy export sanctions or Iran’s disruption of the Strait of Hormuz. This has prompted a renewed focus on domestic energy sources, with nuclear power emerging as a central contender.

“To build national resilience, drive energy security and deliver economic growth, we need nuclear,” said Reeves.

Historically, nuclear energy accounted for about a third of Europe’s electricity in 1990. Today, that share has dropped to 15%, leaving the region heavily dependent on volatile imports. The European Commission’s Ursula von der Leyen criticized this shift as a “strategic mistake,” highlighting Europe’s disadvantage compared to other global regions.

National contrasts in energy mix

Energy costs vary significantly across Europe, shaped by each country’s infrastructure. In Spain, where wind and solar dominate, electricity prices are expected to be roughly half those in Italy, where gas accounts for 90% of energy costs. France stands out as the largest nuclear producer, generating 65% of its electricity through this method. Meanwhile, Germany’s electricity prices for next month are projected to be five times higher than France’s, reflecting its post-2011 Fukushima phase-out policy.

Germany’s shift away from nuclear has left its energy-intensive industries—such as automotive and chemicals—highly reliant on gas. This dependency has contributed to a dramatic reduction in growth forecasts, with Berlin’s top research institutes cutting 2026 GDP projections to 0.6% due to global gas price surges.

Rebuilding alliances and ambitions

France has become a vocal advocate for nuclear energy, emphasizing its role in achieving both energy sovereignty and carbon neutrality. President Emmanuel Macron argued at the Paris summit that nuclear power is essential for balancing independence with decarbonisation, especially as AI-driven demand for energy grows. He noted its potential to support data centres and computing infrastructure, positioning it as a key asset for technological leadership.

“Nuclear power is key to reconciling both independence, and thus energy sovereignty, with decarbonisation, and thus carbon neutrality,” said Macron.

Germany, once a staunch opponent of nuclear, has now aligned with France to remove legislative biases against the energy source. This change may stem from heightened security concerns amid strained relations with the Trump administration. The country has requested France to expand its nuclear deterrent to other European partners, a proposal France recently endorsed.

Is nuclear the ultimate solution?

Despite optimism, experts warn that nuclear energy is not a quick fix. Development requires substantial time and investment, making it less responsive to immediate crises. As Europe contemplates its energy future, the challenge remains: can nuclear power restore stability without becoming a cure-all for the continent’s energy woes?