The title was ambitious: José Manuel Barroso called the speech he delivered in Berlin on Wednesday “European Energy Policy for the 21st Century” presenting an overview of the current situation and of the measures, both those being taken and those being prepared, that will allow the EU to meet its energy challenges and to play a leading role in the world. But does the policy mentioned in his title actually exist?
Achievements and projects. Some of what the Commission President said, descriptive and explanatory, set out key European objectives, achievements and plans for the future. Security of supply, development of renewable energy, energy efficiency, technical progress, reduction of harmful emissions, new technologies: in most of these areas, Europe is at the forefront. Several projects are receiving Community funding: some €4 billion has already been set aside for new infrastructure with construction beginning in 2009 and 2010. Mr Barroso highlighted the triple effect of energy projects: security of supply, economic recovery and pollution reduction. He noted that the measures adopted on Thursday of this week (the third package) strengthening the internal market, and he spoke of the importance of the transport system. On cooperation between member states and with third countries, he made reference to the interconnection plan signed last week by member states around the Baltic Sea, the Commission's intention to develop a similar strategy for the region along the River Danube next year; the venture involving German firms to harness the immense solar resources of North Africa. The initiatives mentioned, and those on nuclear energy (developed by those member states that favour this form of generation), the biomass, etc., require massive investment; but this is justified because a low-carbon economy “represents nothing less than the industrial opportunity of this century!”
The Russia-Ukraine issue. Mr Barroso devoted the first part of his speech to security of supply, with no attempt made to conceal areas of concern: in his opinion, this is the main immediate issue facing Europe. He made explicit reference to Russian gas passing through Ukraine, a matter discussed at length in this column yesterday, recalling last January's interruption of gas flows: almost one fifth of the EU's total gas supplies were cut and half the EU was directly or indirectly affected. The EU is once again facing a “potentially serious” situation. The two countries involved must honour contracts and commitments: “we have to hope for the best, but prepare for the worst,” Mr Barroso said. He confirmed that an emergency loan package for Ukraine was being considered, with international financial institutions and perhaps even Russia being involved. This will be no simple matter, but at least discussions are taking place. At the same time, the Commission is talking to Russia on strengthening the “early warning mechanism” for cuts in supply (but we know that negotiations on the new partnership agreement have been going on for a long time, see yesterday's column) and it is negotiating with Ukraine on its accession to the “Energy Community”, which would mean that Kiev would have to apply European energy market rules. Mr Barroso also spoke of the discussions taking place to modernise the Ukrainian pipeline system (though this project is not all to the liking of Russia, which wants to be involved, and it is likely to be a long time before concrete results can be seen).
The Commission president acknowledged that prevention was not enough: there had to be a readiness to act. That was why the Commission was in talks with member states and the gas industry to work out how to cope if gas supply through Ukraine was cut once again and how to limit the damage of such a cut. Experts will meet on 2 July, and the Commission will, in the next few weeks, propose a revision of the EU's directive on the security of gas supply. The Commission is not considering a storage system (such as the one that exists for oil), but wants to ensure that there are alternative transit routes: new gas pipelines, access to liquefied natural gas (LNG), and, of course, European procedures in place to respond quickly in the event of a crisis.
What about the common policy? Mr Barroso did not speak about the institutional angle, that is, the lack of a common policy or at least of a system of prior information on national initiatives, often competing one with the other. Everyone knows the situation: ENI negotiated the South-Stream project directly with Gazprom, France is not involved in the Nabucco project because of its opposition to Turkey, motivated by the term “genocide”, a term that was used in the Senate in reference to the Armenian tragedy of last century, and so on. Mr Barroso perhaps felt that the time was not right to speak of this before the Lisbon Treaty which will pave the way for a common policy. This column, however, does not have to show the same reticence.
(F.R./transl.rt)