During a joint appearance in Bratislava, Czech prime minister Andrej Babiš and Slovak prime minister Robert Fico announced their intention to urge European leaders to reassess the scheme’s economic impacts. Their proposal centres on a temporary freeze of ETS1 for four to five years and a structural change to how carbon costs feed into electricity prices. This initiative reflects broader discontent in parts of Central Europe with the pace and design of the EU’s climate policies under the Green Deal framework.
Economic concerns and political alignment
At the core of the criticism is the assertion that ETS1, which has been in force since 2005, has evolved very differently from its original economic projections. According to Babiš, allowance prices have risen far beyond expected trajectories, generating what he described as severe economic damage and undermining industrial competitiveness. Fico reinforced this view by comparing European energy prices unfavourably with those in China, warning that sustained price differentials of this magnitude could lead to industrial decline. Their convergence on this issue also signals a political rapprochement between Prague and Bratislava after a period of strained relations, and it opens the door to coordinated action not only bilaterally but also within regional groupings such as the Austerlitz format involving Austria.
Broader implications for EU climate policy
The intervention by Babiš and Fico comes at a delicate moment for European Union climate policy. While ETS1 is already established, the planned extension of carbon pricing to heating and road transport fuels under ETS2 has faced strong resistance and has been postponed until 2028. The Czech and Slovak position illustrates how concerns over competitiveness, social impact and energy affordability are shaping national responses to EU-level climate instruments. With EU leaders scheduled to meet informally in Belgium in mid-February, the call for a pause and review adds to ongoing debates about whether the current design of carbon pricing adequately balances climate objectives with economic and social realities.
