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18 maltatoday | SUNDAY • 15 MARCH 2026 Economist Two energy shocks JP Fabri NEWS EUROPE has now experienced two energy shocks in just four years. The first followed Rus- sia's invasion of Ukraine in 2022, which exposed the con- tinent's dangerous dependence on imported gas. The second is unfolding more quietly but no less seriously, driven by geopo- litical tensions, fragile supply chains, and persistent volatility in global energy markets. Energy is not simply a tech- nical matter. It is an economic question, a geopolitical ques- tion, and increasingly a social one. When energy prices surge, the consequences ripple quick- ly across the economy. Inflation rises, production costs increase, households face higher bills, and governments are forced to intervene to shield consum- ers and industry. The past four years have demonstrated how deeply energy security under- pins economic stability. Europe's vulnerability stems from a structural reality; the continent remains heavily de- pendent on imported energy. Even after the rapid diversifica- tion that followed the Ukraine crisis, Europe still relies on ex- ternal suppliers for a large share of its fossil fuels. The result is an energy system exposed to geopolitical tensions and global price shocks that lie beyond its control. For European industry, this vulnerability carries significant economic consequences. En- ergy prices across Europe re- main structurally higher than in competing regions such as the United States. This gap translates directly into a loss of competitiveness for energy-in- tensive sectors including man- ufacturing, chemicals, logistics, and aviation. As global compe- tition intensifies, energy costs are becoming a decisive factor shaping investment decisions and industrial strategy. In response, Europe's ener- gy debate is evolving rapidly. What began as a climate tran- sition is increasingly becoming a broader discussion about eco- nomic resilience and strategic autonomy. The challenge now is to decarbonise the energy system while ensuring afforda- bility, reliability, and compet- itiveness. Achieving all three simultaneously is proving far more complex than early policy debates suggested. Nuclear power One of the most striking de- velopments in this evolving debate is Europe's quiet reas- sessment of nuclear energy. For years nuclear power stood at the centre of one of Europe's most divisive policy battles. Several countries, most prom- inently Germany, decided to phase out nuclear plants fol- lowing the Fukushima disaster, expecting renewable energy to gradually replace them as the backbone of the continent's electricity system. Yet the recent energy shocks have forced a significant re- think. Across Europe govern- ments are reconsidering nucle- ar power as a stable source of low-carbon electricity. France is expanding its nuclear pro- gramme. Sweden has reversed its phase-out policy. Even countries that previously re- jected nuclear outright are re- opening the debate. The reason is straightforward. Renewable energy is indis- pensable for Europe's climate goals, but it remains intermit- tent. Wind and solar gener- ation fluctuate with weather conditions, and large-scale storage technologies are still developing. Modern economies require reliable baseload power capable of sustaining industrial activity and maintaining grid stability. Nuclear energy, despite its con- troversies, provides precisely that. This shift represents one of the most significant poli- Malta tops EU in gender pension gap WOMEN in Malta aged 65 and over face substantial disparities in retirement in- come. According to Eurostat, Maltese women received pensions that were 40.3% lower than those of men in 2024, the highest average gender pension gap in the European Union (EU). Across the EU, the aver- age gender pension gap was 24.5%, with significant var- iation between countries. High average gaps were re- ported in the Netherlands (36.3%) and Austria (35.6%), while Estonia (5.6%), Slovakia (8.4%), and Hungary (9.6%) had much smaller differenc- es. Eurostat also reports the median pension gap, which provides a clearer picture of a typical retiree because it is less affected by very high or very low pensions that can skew the mean. In Mal- ta, the median pension for women was 34.9% lower than for men, placing the coun- try fifth highest in the EU for median gaps, well above the EU median of 24.9%. By comparison, Luxembourg (43.3%), Spain (41.1%), the Netherlands (39.6%), and Italy (36.0%) ranked higher, while Estonia ( 0.3%), Hun- gary (0.4%), and Denmark (2.7%) reported negligible disparities. Eurostat highlights that dif- ferences in lifetime earnings and employment patterns are key drivers of gender pension gaps. Women are also more likely to work part-time or take career breaks, often for caregiving, and generally earn less over their working life. Pension systems that rely on lifetime earnings or continuous full-time em- ployment can amplify these differences. In Malta, a contributing factor is that female partici- pation in the labour market was historically low, affect- ing pension entitlements for many older women. In some countries, includ- ing Malta, the average gap ex- ceeds the median, reflecting a small number of very high male pensions. In others, the median is larger, showing that even mid-level pensions for women are substantially lower than men's. Malta's da- ta show both a high average and median gap, confirming that disparities are wide- spread across the distribu- tion of pension incomes. Reporting by James Debono