Helsinki, 08/09/2006 (Agence Europe) - The EU25 finance ministers discussed, on Friday, the economic and financial aspects of the future European energy policy, essentially confirming their previous positions. Discussions on innovation and its financing showed, moreover, that Europe “needs results”, Council President Eero Heinäluoma told the press.
The main messages delivered by ministers on the future European energy policy concerned: reduction in external energy dependence, clear and stable policies for promoting investment, increased market transparency, strengthening of the emissions trading system after 2012 and completion of the single energy market. The Commission, which is responsible for developing an action plan with a view to the Spring European Council 2007, will present its strategy in January, Joaquin Almunia conformed. More specifically, the diversification of supply sources, the improvement of energy efficiency and the promotion of renewable energy sources must be ensured in order to reduce the EU's energy dependency on outside sources. Investment-friendly policies would then benefit from the strengthened role of the European Investment Bank (EIB), especially in the context of the FEMIP, and other international financing institutions. Also, increased market transparency would benefit from the publication of clearer and more regular data on oil stocks (currently, they are published at irregular intervals and too long after the time to which they refer). Ministers also supported the Commission's work to ensure effective implementation of European legislation on the single energy market. The lack of physical interconnection between Member States is a failing, which could be addressed by increased cooperation between national regulators. Ministers also stressed the need for effective and constant coordination in their reactions to energy price rises. This was requested in Manchester where, during the surge in oil prices one year ago, ministers had undertaken to prevent over-individualised approaches: - in Helsinki, the Council agreed that tax distortion and other political interventions that prevent the necessary adjustments should be avoided. “There is still a great deal to be done to achieve a real common European energy policy”, Mr Almunia admitted. He felt that, “it was not just luck” if rises in the price of crude oil (up 80% since 2005) have not been felt on the general price level. He went on to note that the reactions of Member States have been “better coordinated and better thought out than in the past”.
Creating an innovative environment would mean having more effective financial institutions but also strengthening links between the scientific world and private companies. It would also mean acting on the legislative front, Mr Almunia said after a discussion on innovation. “Financial markets have a very important role to play in allowing growth products to be improved” and in boosting innovation, Jean-Claude Trichet explained, urging for full integration of the capital markets.