Tuesday, February 21, 2006

EU founders to create electricity club

France, Germany and the Benelux countries are in talks to set up a single electricity market in a first step toward a new common EU energy policy.

The electricity talks are taking place at minister level in the group of five EU founders, in what is being called a "forum for western-European energy cooperation," a French diplomat said. He explained the talks have so far focussed on the technical details of joining up national electricity grids, and that extension of the western forum to oil and gas is "not forseen for the time being." The contact indicated the electricity club is open to new members, saying "If other member states want to come with proposals and an open mind, I am sure they will find a positive echo." The schedule for the elctricity project is open-ended and "relies on the political will" of those involved, he said.

EU energy commissioner Andris Piebalgs has welcomed the move by the five countries. Energy spokesman Fernando Tarradelas Espuny described the electricity link-up as a foreshadowing of the EU's future common energy policy. "We see this is an intermediary state to an EU-wide market," he said. "It's easier to do this with one's neighbours than with a country that is 3,000 km away," he added.

The commission plans to put forward a major green paper on energy policy on 8 March, but leaks of the draft document suggest Brussels will be held in check by lack of solidarity among member states.The Financial Times reported on Monday (20 February) that the green paper will call for €600 billion of investment in the energy sector by 2025.

Poland pushes energy NATO plan

Polish prime minister Kazimierz Marcinkiewicz is also planning a big push of Warsaw's energy NATO pact idea at the upcoming March summit, Polish officials say. The text envisages a "one for all, all for one" approach dubbed "the Muskateer principle," under which all signatories would help any one member facing a supply crunch.

The pact would extend beyond the EU to all NATO members and might also include Ukraine and Moldova, but details of the proposal, such as which authority would oversee implementation, are not yet clear. Mr Marcinkiewicz recently unveiled the scheme at the Davos World Economic Forum and telephoned the British, French and Austrian leaders on the subject last week with a view to presenting a fresh document in the next few days.

An EU diplomat said Poland is also pushing for a "consultation principle" in the EU's common energy policy. The principle would see any EU member wishing to sign an energy deal with a non-EU state having to consult its 24 colleagues first.

EU Observer

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