High Oil Prices Bad

Economic rationality is a rare commodity in politicians. The EU being a rest home for failed politicians, the problem is even more acute. Take this:

"The present very high oil prices are without doubt of concern to the European Union," EU Energy Commissioner Andris Piebals told a news conference at the European Parliament in Strasbourg, France.

Which is of course correct, high oil prices will act as a brake on economic growth. So why am I complaining? Well inconsistency. The EU as a body has been the most passionate supporter of action on climate change, especially Kyoto. This useless treaty will do nothing for the environment and yet will have a far greater impact on growth than the current high oil prices. High oil prices on the other hand will lead to much faster growth of alternative energy sources. The EU is also the promoter of stupid socialist policies that tie employers in knots and reduce the growth in employment. So, to Eurocrats everywhere, be happy that record oil prices are helping the environment and give up on socialism and watch your economies bloom, whatever happens to the price of oil.