In a stunning rebuke that has sent shockwaves through European industrial circles, former Czech Prime Minister Andrej Babiš has accused the EU’s Emissions Trading System (ETS) of decimating Czech industry, demanding urgent reforms to prevent further collapse. With industrial capacities already down by 10% since a key conference two years ago, Babiš warns that endless talks and summits have yielded nothing but losses, calling for immediate action to revise the system and cap soaring allowance prices that are fueling speculation and outsourcing profits.
Babiš’s fiery statement, delivered in a video address, highlights the dire consequences of the ETS on Czech manufacturing, where skyrocketing costs have eroded competitiveness. He pointed to the EU Commission’s 2020 projections, which estimated allowance prices at around 26 to 50 euros, but today’s reality sees them soaring to 90 euros, driving factories to the brink. This unchecked inflation, Babiš argues, stems from 80% of allowances being traded in speculative markets, siphoning wealth away from Europe and into foreign hands.
The former leader didn’t mince words, revealing that 63% of the profits from these allowances are flowing to the United States and United Kingdom, leaving Czech businesses to bear the brunt of the fallout. “We are losing our industry while others profit from our pain,“ he declared, underscoring how this system is not just inefficient but actively destructive to the internal market. His call for a maximum price cap echoes warnings he issued five years ago, yet little has changed, amplifying the sense of betrayal among affected workers.
Babiš’s remarks come amid growing unrest in the Czech Republic, where factories are shuttering and jobs are vanishing, all while EU leaders debate the finer points of green policies. He specifically referenced a letter he sent in September 2021 as prime minister, urging action on ETS reforms, only to see it ignored. This pattern of delay, he insists, threatens not just one nation but the entire bloc’s economic stability, as industries flee to less regulated shores.
Experts are now scrambling to assess the implications, with analysts warning that without swift intervention, the ETS could accelerate deindustrialization across Central Europe. Babiš’s demand for a price ceiling at 130 euros per allowance is positioned as a lifeline, one that could restore balance to the internal market and encourage investment in sustainable technologies without crippling existing operations.
The urgency in Babiš’s tone reflects a broader frustration with EU bureaucracy, where conferences and reports pile up but real change lags behind. He emphasized that competitiveness and innovation are hollow promises if industries are allowed to wither, urging member states to seize competence and act decisively. This breaking development could force a reckoning at upcoming EU summits, potentially reshaping climate policy to better align with economic realities.
As the video circulates rapidly online, reactions from Brussels officials have been muted so far, but pressure is mounting from industry groups across the continent. Babiš’s straightforward approach—action over words—resonates with voters weary of environmental mandates that seem to prioritize ideology over practicality. The stakes are high, with the potential for widespread protests if reforms aren’t forthcoming.
In the Czech Republic, where manufacturing forms the backbone of the economy, the fallout from ETS is already evident in empty factory floors and rising unemployment figures. Babiš called out the system as a “speculator’s playground,“ where big financial players reap rewards while local businesses struggle to comply. This imbalance, he argued, undermines the very principles of the European project, eroding trust in shared institutions.
Supporters of Babiš’s stance point to similar concerns in other member states, like Germany and Poland, where energy-intensive sectors are facing similar pressures. The ETS, designed to curb emissions, has instead become a tool for market manipulation, with allowances treated as commodities rather than regulatory instruments. Babiš’s proposal for immediate revisions could spark a broader debate on how to make green transitions equitable.
Critics, however, caution that capping prices might dilute the ETS’s effectiveness in fighting climate change, potentially slowing progress toward net-zero goals. Yet, Babiš counters that saving industries now is essential for any long-term sustainability, arguing that a collapsed economy can’t fund environmental innovations. His message is clear: the time for talk is over; decisive steps are needed to protect jobs and growth.
This story unfolds against a backdrop of global energy shifts, with rising costs exacerbated by international events like the Ukraine conflict. Babiš’s intervention adds fuel to the fire, positioning him as a voice for those feeling sidelined in the rush toward decarbonization. As EU leaders convene, the question looms: will they heed this wake-up call or risk further industrial erosion?
The video transcript reveals Babiš’s deep frustration, built from years of unfulfilled promises and mounting evidence of damage. “Two years ago, we talked at that conference, and what happened? Nothing,“ he said, his words laced with urgency. This isn’t just rhetoric; it’s a battle cry for survival, as Czech firms lose ground to competitors in regions with lighter regulatory burdens.
In response, environmental advocates are pushing back, stressing the need for ambitious climate action despite short-term pains. But Babiš’s narrative taps into a widespread sentiment that the transition must be managed with care, avoiding collateral damage to key sectors. His demand for “maximum price of 130“ is more than a policy suggestion; it’s a line in the sand for economic sovereignty.
As this breaking news reverberates, investors are watching closely, with stock markets in Prague showing early jitters. The potential for EU-wide policy shifts could reshape trade dynamics, affecting everything from energy prices to supply chains. Babiš’s call to action is a pivotal moment, forcing a confrontation between environmental imperatives and industrial realities.
Wrapping up his address, Babiš warned, “We will meet again and again if nothing changes, but by then, it might be too late.“ His words echo the fears of many, underscoring the need for a balanced approach that safeguards both the planet and prosperity. This development marks a critical juncture for the EU, where the path forward could define the bloc’s future competitiveness on the global stage.
In the hours since the video emerged, social media is abuzz with support from industry leaders and workers, amplifying Babiš’s message far beyond Czech borders. The hashtag #SaveOurIndustry is trending, signaling a grassroots movement that could pressure policymakers into accelerated reforms. As the day unfolds, the world waits to see if this bold declaration will catalyze change or fade into more bureaucratic inertia.