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European wind turbine stocks fall after EU shift to the right

Shares in wind turbine makers Vestas and Nordex fell on Monday a day after European Parliament election results revealed a. shift to the right with analysts also mentioning rising interest. rates as a potential future issue.

The political shift might make the EU's enthusiastic climate. policies more difficult to pass, though Europe is likely to stick with. its green policies, according to legislators, authorities and. analysts.

The elections may cause a less helpful policy. environment for energy shift, with potential financing cuts. post-2028 and a shift in focus to national policies, CITI. analysts stated in a research note.

Nordnet expert Per Hansen said investors were responding to. elements consisting of the EU elections, particularly the unanticipated. result in France.

A more populist Europe may, investors believe, have a result. on the desire to believe green, Hansen said.

Sydbank expert Jacob Pedersen indicated greater interest. rates, which traditionally impact Vestas' clients, as a key. factor to the drop.

Energy policy is security policy, and as wind energy is a. essential innovation for Europe to reach its energy shift. targets, we expect that the construct out of wind energy remains a. priority in the EU, Vestas stated in an emailed statement.

Meanwhile, a representative from Siemens Energy, Vestas' primary. rival, cautioned that reverting to nation-state thinking could. be deadly to the industry.

Shares in Germany's Nordex were down 3.6% at 1211 GMT, while. Vestas' shares dropped 2.3% and shares in Siemens Energy, which. is more diversified, were up 0.6%.

Industry body Eurogas stayed optimistic about financial investment. Eurelectric, another market group, asserted it was early. to draw conclusions about financial investment over the next five years.

Our expectation is the Green Offer will continue, however with. an increased concentrate on commercial competitiveness, said Kristian. Ruby, secretary general at Eurelectric.

Investing in regional industries was a project promise across. the political spectrum, as competition hones with the U.S. and China to produce green tech such as low-carbon steel and. electrical cars.

The EU stated in March it would investigate subsidies gotten. by Chinese suppliers of wind turbines predestined for Europe in a. relocate to shield European companies from low-cost tidy tech items.

(source: Reuters)