Intentions and results

The “special” European Council on Energy on Innovation was marked by urgent international events and by the economic crisis. It’s hard to look ahead, planning long-term strategies and investments targeted at strategic sectors when the near countries are in a state of turmoil and recession impends: good intentions but modest results.Foreign policy, energy market. EU27 heads of Government or State, convened in Brussels on February 4th, examined first of all the situation of emergency in North Africa. After too much wavering, they reached a stand similar to the United States’. In a statement the Council condemns all forms of violence, conveys its support for popular – albeit peaceful – demonstrations, it calls for democratic reforms and free elections. Moreover, EU leaders promised immediate humanitarian aid and cooperation for development and addressed an explicit message to Cairo: “The transition process must start now”. For this purpose, EU High Representative for Foreign Affairs Catherine Ashton plans to visit the two capital cities soon. The summit then focused on two items on the agenda: “We need to secure the energy supply and establish a single European energy market, just as we need a single European area for research, mobilizing all our talents”. EU Council President Herman Van Rompuy said he was optimistic on the eve of the summit, and appeared satisfied when it ended. He addressed the thorny issues of energy and innovation in rather general terms, without binding commitments, while as relates to economic governance he postponed the important decisions to the end of March summit and ensuing meetings.Efficiency and consumption reduction. As relates to energy, the president of the European Parliament Jerzy Buzek – who by tradition delivers the opening address – appeared more determined as compared to other speakers. “It’s a global problem that deserves a global solution”, he said. “We need to secure supplies” at low costs. “For this reason we cannot go on with 27 different energy markets, as it the current situation of the European Union”. The Polish politician indicated three priorities: efficient cross-border interconnections, “close political coordination to purchase energy abroad” (the external dimension of energy policy), “research and innovation” for clean, less polluting energy, that will enhance energy efficiency and renewable energy sources. “The cheapest energy is the one that we mustn’t produce”, underlined Buzek, who has been insisting on savings and efficiency to reduce energy waste. Addressed themes and “remarkable absentees”. The Council “Conclusions” state: “Safe, secure, sustainable and affordable energy contributing to European competitiveness remains a priority for Europe. Action at the EU level can and must bring added value to that objective”. EU27 heads of Government or State recognized that the EU needs “a fully functioning, interconnected and integrated” internal energy market that “should be completed by 2014 so as to allow gas and electricity to flow freely.” The final document equally refers to the need to modernize and expand Europe’s energy infrastructure and to interconnect networks across borders”. The summit clarified, “The bulk of the important financing costs for infrastructure investments will have to be delivered by the market, with costs recovered through tariffs”. Although in general terms, the EU leaders broached the subject of energy efficiency, renewable sources and reaching the EU objectives in these fields (reducing greenhouse gas emissions, stepping up efficiency, resorting to clean sources like sun and wind). But the nuclear energy and post-Kyoto agreements were remarkably absent themes. Governance, the discussion is adjourned to March. As relates to innovation the summit conveyed only generic wishes regarding exiting the crisis, investing on modern economy and the objectives fixed by the Europe 2020 growth and employment strategy. Finally, the Council reviewed the economic situation and “and noted that the overall economic outlook is improving although important challenges still remain”. Obviously these themes will be addressed once more during the March summit when the Council is expected to reach a general approach “on the Commission’s legislative proposals on economic governance”, strengthening the Stability and Growth Pact implementing “a new macroeconomic framework” and financial markets supervision.