Closures of chemical plants in Europe surged sixfold since 2022. Total closed capacity hit 37 million tons. New production capacities plunged from 2.7 million tons in 2022 to 0.3 million tons in 2025. Antwerp Declaration signed in 2024 but EU actions too slow. Clean Industrial Deal started but pace inadequate. High energy costs and EU ETS system crush energy-intensive chemical sector. Free emission allowances determine if production stays in Europe. Lack of regulatory predictability hampers investments. Non-EU producers exploit cheap energy and lax rules. EU trade protections react too slowly and weakly. Import dependence grows as Europe loses production. Chemical industry underpins energy, defense, pharma, agriculture, and tech. Europe weakens economically amid geopolitical tensions.