RWE, Germany’s largest energy company, has expressed skepticism regarding the recently agreed energy deal between Brussels and Washington. Markus Krebber, CEO of RWE, cautioned that the agreement, which aims to significantly increase imports of US oil, gas and coal into the EU, may not be economically viable.
Speaking to the Handelsblatt, Krebber emphasized that energy markets typically operate on the principle of sourcing from the most competitive prices. He warned that mandated market interventions to favor US imports could ultimately lead to higher costs for both European consumers and businesses.
The agreement, brokered during trade negotiations between European Commission President Ursula von der Leyen and US President Donald Trump, pledged an increase in US energy exports to the EU totaling $250 billion annually over the next three years – a more than threefold increase from current levels. However, Krebber questioned the feasibility of the US substantially ramping up its energy exports within that timeframe.
He further noted that neither the European Commission nor the German government have engaged in discussions with RWE regarding this new arrangement.
In contrast to his reservations about the US energy deal, Krebber voiced his approval of the current German government’s performance. He highlighted renewed interest from foreign investors and a positive trend in the stock market, attributing this to the new administration. He added, however, that sustained momentum is crucial and requires continued implementation of planned reforms. Should those reforms materialize, RWE would be open to considering additional investment within Germany.