Brussels, 09/11/2007 (Agence Europe) - On Thursday 8 November, Brussels played host to the first round of European-Swiss talks on an energy agreement, with particular focus on joint principles and rules for setting up an integrated electricity market between the EU and Switzerland. The first meeting gave the parties the opportunity to consider how the European and Swiss markets operate and the arrangements for an agreement which will tackle all the issues relevant to the electricity production sector, as set out in the acquis communautaire on the internal energy market. This refers in particular to the organisation of the sector, security of supply, rules on access to the network for cross-border transit, harmonisation of network security standards, environmental issues and competition related to electricity production. The agreement is also likely cover trade in electricity produced from renewable sources. With its central geographical location and the very special nature of its electricity production (hydro power accounts for over 50% of production), Switzerland plays a key role in the operation of the European electricity market. Switzerland's cross-border trade in electricity and its role as a supplier of renewable energy are of great importance for some neighbouring EU member states, Italy, Germany and France in particular. Recent developments in the integration of a European electricity market and the blackout in Italy in 2003 encouraged the EU and Switzerland to consider improving their own operating rules and to better integrate their markets to enhance network security and allow the players in the electricity market, from producers to final consumers, to enjoy the benefits of an integrated market, liberalised under common rules. The two sides will meet again in Bern at the end of January or the beginning of February 2008 to begin more technical discussions related to the various chapters of the negotiations. (E.H.)