Brussels, 18/03/2014 (Agence Europe) - For the June meeting, the European leaders are awaiting an action plan from the Commission proposing measures to deal with the EU's Achilles heel.
There is an urgent need to seek alternatives to Russian gas: this was the message sent out by the heads of state and government of the EU, meeting in Brussels on 20-21 March, for a European summit which was largely given over to the Ukrainian crisis. It is no longer just about protecting the member states from possible interruptions of supply, as in 2009, when Russia turned off its tap in order to punish Ukraine, thereby affecting a dozen member states as well. In light of the worst tension since the end of the Cold War, the EU28 no longer wish to depend on an aggressive Russia, which is redrawing the borders of Europe.
“Energy dependency matters for energy prices, it matters for industrial competitiveness. And it matters for our foreign policy. If we don't take action now, by 2035 we'll be dependent on foreign exports for up to 80% of our oil and gas. Today we sent a clear signal that Europe is stepping up a gear to reduce energy dependency, especially with Russia”, stressed the president of the European Council, Herman Van Rompuy, after Friday's session. Although the share of Russian energy in EU imports has fallen from 45% in 2003 to nearly 30% in 2013, there are still 13 member states which depend on Russia for more than 50% of their supply, and six of these depend on Russia entirely (Finland, Slovakia, Bulgaria and the three Baltic states). As for Germany, it consumes one third of the Russian gas imported into the EU. Following an animated debate between 28 countries with different interests and concerns over gas with regard to Moscow, the EU28 agreed on the outlines of the strategy to reduce the EU's external energy dependence, which comes through in the conclusions of the summit.
First priority: the rapid completion of the single energy market - the political objective remaining 2014 - to ensure a seamless transfer of surplus energy from one member state to another, and to develop interconnections to break the isolation of the member states which are the most cut off from the European gas and electricity networks, by 2015. In order to do this, the EU28 must redouble their efforts to implement the third liberalisation package and achieve the decade-old objective of ensuring that at least 10% of the electricity production capacity in each member state is interconnected to the networks of the neighbouring member states. With regard to this, the Commission has been tasked with tabling a proposal between now and June for specific interconnection objectives to be achieved by 2030, for decision in October. Particular attention will be paid to interconnections with the outlying and less well-connected parties to the single market, including via reverse flows.
Second priority: “stepping up the efforts aiming to reduce the high levels of gas dependence in Europe, particularly for the most dependent member states”. The European Council has therefore tasked the Commission with conducting an in-depth study on energy security by June and presenting an action plan to cut the EU's energy dependence. This plan must reflect the growing need for the EU to diversify its energy supply, increase its powers of negotiation with third countries, continue to develop renewables and other local energy sources and coordinate the development of infrastructure. Basically, the EU28 stressed the need for interconnections with the Iberian peninsula, the Mediterranean region and other third countries, if necessary. But also actions of solidarity between the member states in the event of sudden disturbances to supply in other member states. They also call for other measures to support the development of the Southern corridor, including new routes across Eastern Europe, and for an examination of ways to facilitate exports of natural gas from North America- where production has been given a shot in the arm with the shale gas revolution - to the EU, particularly in the framework of EU-US TTIP negotiations. More transparency in intergovernmental agreements in the field of energy is also needed. Lastly, the European Council argues in favour of reducing energy demand through increased energy efficiency.
Third priority: bringing down the energy costs borne by the end users (households and businesses) in light of concerns for industrial competitiveness, another key theme of the summit. The European Council calls for “sustained efforts” to achieve this, on the basis of the Commission's analysis of the price and cost of energy, which was unveiled in January. These efforts should in particular promote the gradual transition of support mechanisms for renewables into a more effective market system with regard to costs and towards a convergence of national aid regimes after 2020, but also on the basis of investments in energy efficiency and getting on top of demand, and on the promotion of internal resources and competition on the gas supply markets. Obviously, the choice will be left up to the member states to “take appropriate measures to reduce costs in accordance with the means which are the best adapted to their situations”. The European Council also asked the Commission to carry out an in-depth examination of the different national practices regarding the tax and network costs components of the costs of energy, in order to reduce the negative repercussions on prices.
Evolving into an energy union. “The European leaders are ready to maximise their collective hand. Europe was first built as a community for coal and steel. Sixty-four years later, and in new circumstances, it is clear we need to be moving towards an energy union”, summed up Van Rompuy. “A common negotiation strategy for purchases of gas would be the best and fastest way of making Europe independent of this threatened diktat on the part of Russia, but I understand the problems of some countries, where private businesses, with Russian stakeholdings, decide what goes on on the gas markets”, commented the Polish Prime Minister, Donald Tusk. “American gas could be an option”, said German Chancellor Angela Merkel. (EH with AN/MB/MD/CG/EL/JK)