Luxembourg, 07/06/2002 (Agence Europe) - After a very busy morning during which meetings focused on aid to the coal industry, the Council reached a political agreement on energy efficiency in buildings and on the draft regulation on State Aid to the coal industry. Commissioner Loyola de Palacio presented her programme, "Intelligent energy for Europe", the details of which are as follows:
Energy Efficiency in buildings: The Council reached a political agreement without discussion on the Commission proposal on energy efficiency in new and existing buildings. "It's a very important agreement, given that the Commission has dedicated much effort to the case", explained Loyola de Palacio. The Parliament must now give its opinion in the second reading on this common position (EUROPE will be returning to this theme).
State Aid to the coal industry: The Council has reached a political agreement on the State Aid system to the coal industry (replacing the current system which expires on 23 July) and on the overall phasing out of these two categories of aid to production (access to reserves and a reduction in activity). Once the document is drafted, it will be formally approved by the Ministers during a Council meeting. The new system is expected to be applied from 24 July. The Spanish President of the Council, Mr Folgado, declared that this agreement would allow the safety and supply objectives to be realised, as well as the social objectives. Commissioner de Palacio stated that the agreement was more important in that it would allow the salaries in candidate countries to be paid who will now have a clear framework. German Minister, Müller said that the agreement was a great success for Germany because it would allow the German coal industry to adjust. The Council agreement is as follows: 1) Imposes an overall phasing out in order to achieve a significant decrease in aid for accessing coal reserves I and reducing activities; 2) Plans the end of aid for reducing activities from 31 December 2007, whereas other aid (access t coal reserves and covering exceptional charges will end by 31 December 2010; 3 Limit to the total amount that is attributed annually and jointly for aid for accessing coal reserves and aid for reducing activities to the aid paid in 2001, which has become the reference point for working out aid. The Swedish and Belgian delegations, as well as the Commission, were not, whoever, agreed on the decreases. Belgium and Sweden indicated in a common declaration that they regretted that according to Article 6 of the Regulation, the amount of State Aid that a Member State is allowed to give for accessing coal reserves should not be reduced in a continued and significant manner. This is because there is a risk that this aid increases. The two countries are asking the Commission to take all the necessary measures to be sure that Articles 87 and 88 are totally respected by Member States. The two delegations fear that under cover of an overall decrease, certain Member States will be able to increase one of the two aid systems while reaching an overall decrease. Aid for covering exceptional charges will not be subject to degression obligations involving costs that are not linked to current production (as pension payments for example). A mid-term assessment will be made (in 2008) in order to check development in the sector and determine policy after 2010. Member States should currently notify the Commission the concrete organisation for this Aid which will allow, at the moment the CECA Treaty end and the current Aid system finished on the 23 July, to maintain certain coal capacity.
Trans-European energy networks: The Council had adopted, while waiting the recommendation of the European Parliament, a general guideline on the Commission proposal supporting inter-connection, inter-operability and development of Trans-European energy networks, as well as access to these networks, in view of reaching an electricity inter-connection capacity of 10% between Member States. Ministers approved the twelve common Internet priority projects and the concentration of activities on ten common interest projects (EUROPE will be returning to this). However, several delegations, including the United Kingdom, are worried about the possibility of increasing the maximum for co-funding for priority projects by the Community from 10% to 20%. They accepted the proposal concerning the infrastructures while indicating that they intended to continue discussions on the financial framework during the next ECOFIN Council. This agreement is very important because it will allow development to be facilitated of the internal gas and electricity market" declared Commissioner de Palacio, for her part.
Liberalisation of the gas and electricity markets: the Commission presented the Council with an amended proposal on the liberalisation of the gas and electricity markets, taking account of Parliament's opinions. The President of the Council stressed that there was convergence between the delegations on several aspects (like the notion of public service, the need to provide quality services to all, the separation of activities) but "there is still much work to be done". A source close to the issue, for his part, said that "once the French and German elections are over, we shall be able to make progress on the issue". "We hope to reach an agreement under the Danish Presidency" concluded Loyola de Palacio.
The other main topics the Council broached were:
a progress report on work on the energy Charter, providing a general overview of four sectors of activity of the Charter (transit, energy efficiency, investment and trade).
the presentation by Commissioner de Palacio of her "Intelligent Energy for Europe (2003-2006" programme, which received "the total backing of Member states", said the President of the Council. This proposal aims to enhance security of energy supply, combat climate change and stimulate the competitiveness of the European industry in that sector, with a budgetary envelope of 215 million euro over four years. Loyola de Palacio stipulated that she was striving for the programme to be adopted by the end of the year.