Common European Energy Policy

By Sikander Hayat

This is the most pressing issue at the moment for the EU and reasons for this are plenty.
Where we are at the moment in terms of this policy and where we want to be in near future.
What are the negative points for not having this policy
What are the advantages for having this policy

EU Green paper (Recommendations):
The EU needs to complete the internal gas and electricity markets.
Action could include the following measures:

§ The development of a European Grid, including through a European grid code.
§ A European regulator and a European Centre for Energy Networks should also be considered.
§ Improved interconnections.
§ Creating the framework to stimulate new investment.
§ More effective unbundling.
§ Boosting competitiveness, including through better coordination between regulators, competition authorities and the Commission.
§ These must be addressed as a priority; the Commission will reach final conclusions on any additional measures that need to be taken to ensure the rapid completion of genuinely competitive, European-wide electricity and gas markets, and present concrete proposals by the end of this year.

2. The EU needs to ensure that its internal energy market guarantees security of supply and solidarity between Member States.

Concrete measures should include:
§ A review of the existing Community legislation on oil and gas stocks, to focus them on today’s challenges.
§ A European energy supply observatory, enhancing transparency on security of energy supply issues within the EU.
§ Improved network security through increased cooperation between network operators and possibly a formal European grouping of network operators.
§ Greater physical security of infrastructure, possibly through common standards.
§ Improved transparency on energy stocks at the European level.

3. The Community needs a real Community-wide debate on the different energy sources, including costs and contributions to climate change, to enable us to be sure that, overall, the EU’s energy mix pursues the objectives of security of supply, competitiveness and sustainable development.

4. Europe needs to deal with the challenges of climate change in a manner compatible with its Lisbon objectives.

The Commission could propose the following measures to the Council and Parliament:

§ A clear goal to prioritise energy efficiency, with a goal of saving 20% of the energy that the EU would otherwise use by 2020 and agreeing a series of concrete measures to meet this objective, including:
a. Efficiency campaigns, including on buildings.
b. Harnessing financial instruments and mechanisms to stimulate investment.
c. A renewed effort for transport.
d. A Europe-wide “white certificates” trading system.
e. Better information on the energy performance of some appliances, vehicles, and industrial equipment and possibly, minimum performance standards.
f. Adopt a long-term road-map for renewable energy sources, including:

a) A renewed effort to meet existing targets.
b) Consideration of which targets or objectives beyond 2010 are necessary.
c) A new Community Directive on heating and cooling.
d) A detailed plan to stabilise and gradually reduce the EU’s dependence on imported oil.
e) Initiatives to bring clean and renewable energy sources closer to markets.
5. A strategic energy technology plan: Making best use of Europe’s resources, building on European technology platforms and with the option of joint technology initiatives or joint undertakings to develop leading markets for energy innovation. This should be presented as soon as possible to the European Council and Parliament for endorsement.
6. A common external energy policy. In order to react to the challenges of high and volatile energy prices, increasing import dependency, strongly growing global energy
demand and global warming, the EU needs to have a clearly defined external energy
policy and to pursue it, at the same time at both national and Community level, with
a single voice. To this end the Commission proposes:
Identifying European priorities for the construction of new infrastructure necessary for the security of EU energy supplies.
Developing a pan-European Energy Community Treaty.
A new energy partnership with Russia.
A new Community mechanism to enable rapid and co-ordinated reaction to emergency external energy supply situations impacting EU supplies.
Deepening energy relations with major producers and consumers.
An international agreement on energy efficiency.
The EU needs to complete the internal gas and electricity markets.
The EU needs to ensure that its internal energy market guarantees security of supply and solidarity between Member States
This is the biggest issue at the moment for union to contemplate and an agreement has to be reached soon and to use a phrase coined by Pentagon “coalition of the willing” might take shape. This argument depends on the notion that different countries of the union can start their own projects and it becomes optional for remaining members if they want to join or not.
Very visibly there is a rift between newer members and the founding members of the EU on this issue as to forgo the voting rights Poland currently has under the present rules is too much a price to pay and then there are old animosities which are reappearing between Germany and its neighbours to the East. Growing German cooperation with Russia in many fields outside the EU sphere is sometimes becoming too much to swallow for the Poles, the Hungarians, Czechs and other nation which were previously under the Russian influence.
Europe cannot go on too long without the constitutional treaty and there is an argument to be made that to scrap the treaty would be to go against the wishes of the 18 EU members who have already voted in favour of the treaty and who believe that too much emphasis is being given to the members who have said no to the treaty and the countries showed affirmative attitude to the treaty are now in the shadows of wilderness.
There is also an argument to be made that economies which have adopted the Euro should go ahead and take steps towards the political integration in near future as well. As Nicholas Sarkozy said very correctly that EU is a political project and to giving it any other name is not serving anyone very well.
Countries like UK who are hesitating in adopting Euro are actually hesitating to accept the political dimension which comes with it and Euro acceptance is a very good criteria by which we can clearly pinpoint the countries who believe that EU is vital for there interest and those countries who believe otherwise.
Having an EU foreign minister similar basis as to what EU currently has in terms of trade commissioner would give the union a voice in terms of external affairs where weight of the collective can be better used than any individual country or a group.

Iraq war has showed this with some pain that half the EU (UK plus the newer members from the old soviet block) supported the US action and the other half which was infamously dubbed by former head of Pentagon (Donald Rumsfeld) as the old Europe. Countries like France and Germany believe that their influence in the EU is waning due to the sheer number of new entrants who on most occasions instead of following their line are causing problems by asserting their rights as the full members of the union.

Differences range from the homophobic attitude of the new Polish government to its opposition to any initiative that EU takes towards reconciliation with Russia or bring Russia economically closer to the union by creating interdependence between the two.

Debate is healthy and most basic constituent of democracy but there got to be a time when concrete actions need to be taken and the debate cannot go on forever as will cause paralysis and eventual death of the institution it wants to save.

It can be argued that EU is at the cross roads where it has to decide if it just want to be an economic zone with free movement of labour and capital or it is much more than that, a political union.

This question needs a quick and satisfying answer, which answer will it be. Only the time will tell.