Manifesto of European Industrial Realism

Europe Must Not Finance the Disappearance of Its Own Industry

The European Union presents itself today as a global leader of the green transiton. Solar energy stands atthe very heart of this strategy. Installatons are growing, decarbonisation targets are ambitious, and official documents speak of strategic autonomy, industrial sovereignty and reduced dependency. Yet beneath the surface lies a contradiction.

Europe has become an exceptionally successful market for solar energy. It is far less certain that it will become an industrial power in this field. In most large-scale projects, the decisive factor is reduced to a few cents per watt. A difference of one or two cents in a 100-megawatt project translates into millions of euros. Investors optimise LCOE. Banks optimise CAPEX and DSCR. This logic is rational and legitimate.

But if price becomes the only criterion, European manufacturing cannot survive in the long term. Capital will follow the lowest costs, producton will follow capital, and knowledge, innovaton and technological development will follow production. In the end, what remains is a market without its own technological foundation.

Regulation Without Economics Does Not Change the Market

Europe has introduced ESG criteria, carbon scoring and supply-chain traceability requirements. These are important steps toward a more responsible market. However, if such measures do not materially influence the economic structure of projects, they do not alter the structure of the market. If the largest global manufacturers can optimise these requirements more quickly than European producers, regulaton risks becoming an administratve layer rather than an industrial strategy.

Industrial policy is not a checklist of forms. It is the alignment of strategic objectives with financial flows.

The Illusion of Short-Term Rationality

Lower module prices mean lower LCOE. Lower LCOE accelerates the energy transition. The logic is compelling. Yet near-total dependence on a limited number of global suppliers creates systemic risk. Geopolitcal tensions, trade restrictions or disruptions in supply chains can quickly alter market conditons. At that point, price will no longer be the only metric. Sovereignity is not a slogan. Sovereignity is the capacity to produce.

If Europe speaks of strategic autonomy, it must acknowledge that solar manufacturing is not merely acommercial actvity, but part of its critcal energy infrastructure.

The Central Contradiction

A significant share of large solar projects in Europe benefits, directly or indirectly, from European capital. European banks and investment mechanisms finance projects that are ultmately awarded almost exclusively on the basis of lowest price.

The outcome is straight forward: European capital finances the disappearance of European manufacturing. This is not a market failure. It is the absence of an aligned industrial policy.

A Proposal for Industrial Realism

If solar energy is strategic infrastructure, then its manufacturing base must be treated as strategic as well. This does not mean closing markets. It does not mean protectionism. It means consistency.

Such an approach would not make Europe an outlier. The world’s major economic powers already link industrial policy with financial mechanisms. Their development banks and public investment programmes explicitly support domestc producton, technological development and supply chains. Europe would merely ensure the same degree of strategic alignment that others already apply, especially those who today supply the majority of its solar imports.

Industrial realism means recognising that global competition is not purely about price; it is systemic. European financial instruments should therefore incorporate an industrial dimension, through additonal scoring for European added value, preferential financing conditons, or minimum European content in projects supported by European funds.

If a sector is strategic, it must also be treated strategically in financial terms.

The Responsibility of Industry

Industry, in turn, must not rely on protection. It must remain competitive, disciplined and efficient. The companies that endure will be those of the right scale, with diversified sales networks and demonstrable quality.

Yet without minimum alignment between market rules and strategic objectives, the circle of European manufacturers able to survive will become increasingly narrow.

The Choice

Europe stands before a clear choice. It can remain the world’s largest solar market. Or it can also become a stable and meaningful producer. If success continues to be measured solely in gigawatts installed, Europe will have a market without an industry. If it aligns capital with strategy, it can preserve both.

The Manifesto of European Industrial Realism is not a call to close borders. It is a call for coherence. History will judge us simply: did we have the courage to align our words on sovereignty with the economic mechanisms that shape reality?

Dr. Uroš Merc

Founder and Executive Chairman

BISOL Group

Ljubljana / Vienna, 19 February 2026

About the author:

Dr. Uroš Merc is Founder and Executive Chairman of BISOL Group, the largest European solar module manufacturer, with over two decades of production experience in the European Union.