The European Commission has welcomed the speedy conclusion on Wednesday 7 December of an agreement between the Council and the European Parliament on the proposal for revision of the 2012 decision establishing an information exchange mechanism on inter-governmental agreements (IGAs) and non-binding instruments (memoranda of understanding, declarations of intent, etc.) on energy matters between EU member states and third countries. The Commission tabled the text as part of its gas security package in February (see EUROPE 11491).
“Today’s agreement is a major achievement for the EU’s energy security. This significant first deliverable of the Energy Union Strategy, achieved in record time, shows the Commission’s commitment to ensuring compliance with EU law and transparency on the energy agreements between EU and non-EU countries. The new rules … will allow the Commission to guarantee that no energy deal jeopardises the security of supply in an EU country, or hampers the functioning of the EU’s energy market”, said Energy and Climate Action Commissioner Miguel Arias Cañete.
The 2012 decision on IGA transparency requires member states to notify the Commission of their energy agreements with non-EU countries only ex-post. Since 2012, 124 IGAs have been notified to the Commission. One-third of the agreements related to energy infrastructure or energy supply contained provisions that were not compliant with EU law. It has proved “very difficult”, or even impossible, to renegotiate or terminate IGAs once they have been signed by the parties, the Commission says. “In fact, no Inter-Governmental Agreement has been successfully renegotiated as yet”, it states.
To address the shortcomings of the current mechanism and strengthen the EU’s position in negotiations with regard to third countries, the revised text that was agreed on Wednesday introduces a mandatory ex-ante compatibility check by the Commission of IGAs related to gas and oil before they are signed by an EU member state. Member states will not be able to sign any IGAs until the Commission has issued its opinion on compatibility with EU law. The Commission will have five weeks to inform the member state concerned that it has doubts about the deal under negotiation and a further twelve weeks to provide its opinion. At the request of the member state, or when it considers it necessary, the Commission may participate, or request to be allowed to participate, in the negotiations as an observer (the written approval of the member state concerned will be required). Should the member state not take into consideration the Commission’s opinion in the ratified version of the agreement, it must, without undue delay, explain the reasons underlying its decision.
IGAs on electricity matters will be covered by a mandatory ex-post assessment, but a review clause was inserted in the draft revised text to possibly include electricity-related IGAs in the mandatory ex-ante assessment in the future.
The agreement reached on Wednesday still has to be formally approved by Parliament and the Council before the revised decision is published in the Official Journal of the EU. (Original version in French by Emmanuel Hagry)