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European CEOs call for end to green subsidies

The group, dubbed the Magritte Group after the location of its first meeting, are also calling for a Europe-wide capacity mechanism, warning that the current lack of standby capacity has created a risk of blackouts.

The group includes RWE, Eon, Iberdrola and Enel, as well as GDF Suez. They argue that it is illogical to subsidise renewable sources of energy when the European power market is struggling with over capacity.

According to Reuters, GDF Suez chief executive Gerard Mestrallet said: “European energy policy has run into the wall… In sectors like steel, cars and refining, when there was overcapacity, capacity was closed. But in the energy sector, we have massively subsidised additional capacity in solar and wind, which has led us to the absurd situation in which we find ourselves today.”