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Europe Daily Bulletin No. 9800
Contents Publication in full By article 13 / 37
GENERAL NEWS / (eu) eu/european council

Flexibility and solidarity to be recipe for success Nicolas Sarkozy and José Manuel Barroso want on energy/climate package

Brussels, 09/12/2008 (Agence Europe) - The task ahead of the EU27 heads of state and government at their European Council on 11 and 12 December in Brussels will be a heavy one but focused on a minimum number of points. They will be aiming to come to agreement at the highest political level on modalities for implementation of the energy/climate package to allow an agreement at EP/Council first reading by the end of the year on this series of measures prefiguring the third industrial revolution - that of a low-carbon economy. The French EU Presidency, who made adoption of this legislative package one of its priorities, does not conceal the fact that the task will be difficult. Flexibility and solidarity between the member states will be the watchwords for striking the balance that Nicolas Sarkozy, President-in-office of the Council, states he is seeking in his letter of invitation to his colleagues, in which he stresses the problem of transitional derogation to the auctioning of quotas in the energy sector and on carbon leaks, if there is no international agreement on combating climate change after 2012 (see related article). Although talks have made considerable headway, there are many subtleties hiding behind flexibility and solidarity so that no member state has the feeling of being penalised - Germany, which is concerned by the cost of the package in these times of crisis, the “coalition of nine” which is highly dependent on fossil fuels or isolated when it comes to energy, and the United Kingdom and Italy. After his meeting in London on 8 December with Gordon Brown, Nicolas Sarkozy, writes “it will be up to us to find an overall compromise respecting the fundamental aims and balances of the package in order to allow texts to be finalised with Parliament”. Cited by AFP, he declares: “It takes a lot of bilateral accord for there to be a success. And this is not guaranteed”. Such circumspection announces lengthy discussions. The draft conclusions to be put to the 27 will not be finalised until Wednesday evening, the day before the summit opens.

José Manuel Barroso was, however, resolved to see the level of ambition of the package preserved with a view to a possible agreement which, on behalf of the European Commission he presides, made a very strong case for the relevance of such measures, with two things in mind: - the economic and financial crisis and that on international climate talks. “Climate action is part of the economic stimulus. Climate action is part of the solution for the economic and financial crisis. Europe's commitment to the core goal has not wavered” in favour of the three 20s (20% reduction in greenhouse gas emissions, 20% use of renewable energies in total consumption, and 20% energy savings by 2020) to “show the way for a global agreement next year in Copenhagen” in December 2009. In his view, it is a question of the EU's credibility. “It would be a real mistake for Europe to give the signal that we are watering down our position, after all these years leading the efforts for a global solution, now that others, like the Americans, are coming closer, not yet to where we are, but closer to our position”, he added, saying that “our citizens will not accept excuses if their leaders fail to take the right decisions”.

The president concedes that, despite considerable progress made towards a final EP/Council agreement, there are still some difficult questions outstanding. However, he assures, action is being taken regarding possible carbon leaks. He goes on to say that, although it is appropriate to work towards equitably sharing the cost of the package and ensuring all necessary flexibility, there is no question of going back on the aims of the package. That, he said, cannot be negotiated.

When asked about reservation expressed by the United Kingdom and Germany on the European solidarity mechanism (these two countries believe that a 10% transfer of auction receipts from the richest member states to the less rich is too much), José Manuel Barroso said that the Commission will defend its initial proposal, namely the principle of redistributing 10% of auction proceeds depending on the GDP per capita to give compensation to the poorest member states. In his view, it is a matter of essential “equity”, without which these countries should have to make twice as much effort as the others, as investment is more costly for Poland than for Germany. He went on to add that “our solution seems to be the right one. Any other system would entail a risk of imbalance of the whole architecture of the package. (…). But we don't see any problem with minor adjustments”. Without wishing to take a stance on the British position, Mr Barroso said he hoped the United Kingdom, which has always supported the climate plan, will be part of the solution, not of the problem, when it comes to finding a solution. As for Germany, Mr Barroso said that Angela Merkel had always told him that she backed solidarity, equity. He went on to add that questions are not being raised on the principle but on modalities.

When asked about having recourse to the clean development mechanism in the context of the directive on effort sharing in sectors not covered by ETS, Mr Barroso said the Commission will defend its position aimed at putting an upper limit on this practice but that it will perhaps be necessary to reach a compromise. “Knowing Nicolas Sarkozy's positive energy”, Mr Barroso says that “an agreement is possible” at the European Council without having to go without sleep for two nights. However, “I call on all member states to have a spirit of compromise”, the Commission president said. (A.N./transl.jl)

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