Teresa Ribera: "Europe is no less competitive than the United States"

BarcelonaTeresa Ribera (Madrid, 1969) is the Vice-President of the European Commission for a Clean, Just and Competitive Transition since 2024, in a legislature that has veered to the right and must constantly battle to preserve unity against the unpredictable attacks of the United States. The most recent, a war in Iran that has shattered peace in the Middle East and distorted the global economy. The former socialist minister is now working on what the European response to this latest crisis should be, and defends democratic values that she believes must be asserted in the face of Donald Trump's aggressions.

Has Europe been too complacent with President Trump?

— We are living an unusual situation that allows us to identify why Europe is important. We must understand to what extent it is our responsibility to defend the values we represent and not let ourselves be cornered. No one could have imagined these types of behaviors from the White House, which affect the entire planet.

Do we still share values with the United States?

— A very significant part of American society is experiencing all of this with the same perplexity as we are, and is convinced of the importance of democracy, freedoms, and civil rights. An awareness of the fragility of it all is emerging, as was seen a few days ago with the massive presence in the streets of American cities, not only because of the war in Iran but also in defense of its citizens and their rights. All of this compels us Democrats to stand firm, not to escalate or provoke in our response to the conflict, but to unequivocally defend the rules that have allowed us to prosper in the last 80 years. However imperfect the situation we live in today may be, it remains manifestly better than the alternative offered by aggression and force against rights, freedoms, science, and the rule of law.

Will the corrective effect of the situation in the United States be markets or elections?

— Social reaction is expressed politically through the vote, but there are also other manifestations, such as the protest in the markets, which interpret situations of risk and danger immediately, as we saw with the threat over Greenland. At this time, polls in the United States show a very significant downward trend in President Trump's popularity, but there is a long way to go until November. The American society must respond.

Can you imagine yourself as the first vice-president of the EC taking sides with a democratic candidate?

— It is not something we should do. Just as we demand that there be no interference from Russia or from the American vice president in the elections in Hungary, it is important that we remain neutral. Within this political neutrality, I believe it is important to highlight the values that unite us, linked to democracy.

Is Orbán Europe's Trojan horse?

— In recent years, we have seen an increase in the weight of the far-right and populisms in Europe, as well as in the United States. We are 27 member states that must respect our common constitutional framework, and in Hungary there have been different conflicts and infringement procedures. I do not think it is good to see how certain think tanks in Europe, very aligned with far-right, anti-European and nationalist movements, are financed by the United States Department of State, but I also do not think that anyone can be qualified as a Trojan horse.

Given the situation with the war in Iran, what is your forecast of the economic shock on the economy and prices in Europe?

— The answer to this question depends on how much longer it will last and what capacity and agility we will have in our ability to readjust. We can no longer do what we did in 2022, when we looked for supply alternatives. What we need to think about is how to reduce this demand and find solutions for greater electrification and a reduction in consumption, in addition to policies that allow us to support people and the sectors most affected by this change. The consequences may materialize in the coming months. We must be prudently intelligent. We have had to overcome similar crises. Fortunately, we have a recent memory of what can be more effective, how we can respond, and how, by doing it together, we do it better. This is what the European crisis response package is working on.

Agility does not seem like a very community virtue. If you had to say what quick decision should be made, what would it be?

— The dimension of foreign policy is a decision that falls to leaders, and there is a real lack of capacity to find a voice that represents the entirety of European interest. From the perspective of internal, economic, or security policies, there is a greater capacity for reaction. Institutionally, Europe was not prepared to have to react with such agility, but Europe's capacity should not be underestimated. We are learning to move much faster. Will this happen overnight? Certainly not. But we do have a very clear sense of direction that helps us to be much more agile. Furthermore, decarbonizing, improving our markets, and having a socially committed political base are at the center of an effective response to a crisis like this.

Are you still in the center?

— Completely.

Do you not feel more alone than before?

— It is obvious that in the institutions there is a representation of the right and the far-right more present than ever. The Commission is more right-leaning than it has traditionally been, and this means that political families have a different balance. It is a team effort and, regardless of the conviction that each of us brings to it, we are part of a deeply pro-European team that seeks consensus.

The VAT cut on fuels in Spain has been questioned by Brussels. Will the Commission demand its withdrawal?

— Here there is a discussion that has technical and political aspects. The technical ones are about how to facilitate the taxation directive on energy products to operate in the intended direction, that is, that there is no dumping between different member states or distortions. It is also intended to send the signal of electrification as the best solution and to avoid steering towards greater consumption of fossil fuels.

Should Spain extend the life of nuclear power plants?

— It is very important to be respectful of the decisions on the electricity mix of each of the member states. It is not up to any member of the Commission to tell anyone what they should do, because it depends on very different circumstances.

Europe has wanted to reduce its dependence on Russian gas, but now it runs the risk of replacing it with liquefied gas from the United States. Is this a new vulnerability for Europe?

— In 2022, we had to quickly move away from our dependence on Russian gas and look for alternatives. Europe has found one in liquefied natural gas from the United States, Qatar, and other countries. This has a limit. It is very difficult to think that other supply sources can be made available when there is little alternative and the most important production capacity in the world is destroyed or threatened. Clearly, we cannot diversify, and it is crucial to reduce our dependence on external suppliers. We cannot link our competitiveness to something we do not have. In an uncertain and complex world like the one we live in, the temptation to use basic supplies as a tool for pressure is proving to be real. I do not think that the contracts that have been signed with American companies in recent years are at risk. But what we see with total clarity is that, to the extent that Europe can accelerate its entire energy transition process, it will gain in freedom, autonomy, and resilience. Therefore, in competitiveness.

The European Union is losing competitiveness compared to China and the United States.

— When we look at productivity per hour worked in the United States compared to Europe, it seems that the United States is more productive. Except for the small detail that here there are paid holidays, unemployment insurance, and pensions. I wouldn't change it to have more income. This is part of European competitiveness. I believe that Europe is not less competitive than the United States in general terms. Where does the big differential occur? In a growing and systemic sector like the digital one. We also have difficulties in obtaining financing tools: our savings end up being managed by the American financial system. That's why the debate about building a capital union in Europe is crucial: we cannot afford to continue sending our savings to the United States. And, just as I wouldn't change my children's lives for a life without holidays or pensions, the same thing happens in China. We need to know where our problems lie and how we can continue generating wealth, but also avoid whipping ourselves where it's not appropriate. We have a special responsibility to maintain the European way of life: an open market economy, socially committed, and environmentally responsible.

Will Brussels give in to President Trump's pressure to relax digital regulation?

— Brussels does not comment on American tariffs on olive oil. Europe has a digital regulation to protect rights and respond to citizens' concerns, very similar to those of Americans. The US courts have also pointed out problems with certain content, as well as addiction and access for minors. This is what we also want to address. Furthermore, we want to ensure competition: that new companies can enter and compete with the big platforms. Therefore, mutual respect and dialogue, but no relaxation of our rules because someone asks us to.

There are also Europeans who consider that Europe regulates too much and this harms competitiveness. Is there an imbalance?

— This discourse is often simplistic. Europe generates competitiveness through regulation: safe products, quality of life, and environmental innovation. The American model is different, with more risk tolerance. However, sometimes we have too many regulatory layers and too many different interpretations. This needs to be simplified. But attributing a lack of competitiveness to regulation is not correct.

Energy interconnections continue to be a pending issue, especially in the Iberian Peninsula.

— Without interconnections, there is no real European energy market. This was clearly seen with the Ukraine crisis. It is necessary to accelerate networks, both electrical and hydrogen, to integrate the system and reduce costs. It is also necessary to opt for electrification, digitization, and efficiency. These are structural changes, not immediate, but essential, and there is an opportunity to attract investment.

And the French agree?

— They wonder under what conditions and who pays. But the context is changing: renewables and storage offer stability and competitive prices. The path is clear and includes interconnections with the Iberian Peninsula as a key piece.

One year after the great blackout in Spain, what went wrong?

— There are reports from independent experts and ongoing analyses. The system is changing and we need to learn from it. This analysis should help us avoid similar situations.