Gert Bijnens

1 week ago | einpresswire.com | Gert Bijnens |John Hutchinson |Arthur Saint Guilhem

Lasting high energy prices are putting pressure on industries all across Europe. This is hitting some regions, such as southern Germany, the Ruhr and northern Italy, harder than others. The ECB Blog examines the implications for employment. High energy costs threaten the competitiveness of European firms and weigh on employment. Based on firm-level data, we estimate that a permanent rise of 10% in electricity prices could reduce employment in energy-intensive sectors by up to 2%.

1 week ago | ecb.europa.eu | Gert Bijnens |John Hutchinson |Arthur Saint Guilhem

Lasting high energy prices are putting pressure on industries all across Europe. This is hitting some regions, such as southern Germany, the Ruhr and northern Italy, harder than others. The ECB Blog examines the implications for employment. High energy costs threaten the competitiveness of European firms and weigh on employment. Based on firm-level data, we estimate that a permanent rise of 10% in electricity prices could reduce employment in energy-intensive sectors by up to 2%.

Oct 7, 2024 | nbb.be | Gert Bijnens |Cédric Duprez |John Hutchinson |Peter Reusens

The recent energy price shock ate into the profit margins of most firms, across all sectors. Belgian data reveal that many regained profitability when prices fell back, but energy-intensive firms didn’t recover in the same way. This is unfortunate, not least for Europe’s ability to meet its climate objectives, as low profits make it harder for firms to finance green investments.

Sep 17, 2024 | einpresswire.com | Gert Bijnens |Cédric Duprez |John Hutchinson

Energy-intensive firms continue to suffer from low profits margins even as energy prices have fallen from their peak. The ECB Blog discusses implications for the green transition in the EU. Skyrocketing energy prices during the recent crisis ate into most firms' profit margins across all industries. Using Belgian data, we find that many firms regained profitability when prices fell again. But energy-intensive businesses didn't recover in the same way.