Another aspect is that cheaper solar panels means cheaper energy: something that Europe is having trouble with right now.

Cheaper energy means lower costs to produce stuff - Making their economy more competitive not less. E.g. Certain foods need refrigeration. Factory equipment. Server farms. Offices have lighting and aircon etc.

If Europe allows their own solar panel industry to gouge themselves, the initial investment in solar will be more of a cost and they are going to have less future growth.