EUROPE: CONCERN IN BRUSSELS FOR THE ENERGY ARGUMENT BETWEEN FRANCE AND ITALY

The attention of the EU institutions is kept alive by the event that during the weekend opposed the Italian energy provider, Enel, to its French counterpart, Suez. De Villepin’s government announced a merger between Suez (which owns a controlling share of the Belgian Elecrabel, which Enel offered to buy) and Gaz de France, into a new energy giant, which would be the EU leader after Edf. This morning, the French Economy Minister, Thierry Breton, explained that "Gaz de France will take over the French-Belgian Suez". The French government will "still be the controlling shareholder", "with a share of 34 to 35%". According to the French trade unions, worried about the decision, which in fact privatises GdF, problems could arise about the group’s employment, rates and investments. Instead, the Italian Minister for Productive Activity, Claudio Scajola, speaks of "neo-protectionism". "You can’t breach free-trade laws in Europe – explained Rome’s government representative -. If neo-protectionism wins, the political and economic fate of the EU is doomed". The EU Commissioner for Competition, the Dutch Neelie Kroes, is expected to have her say today. Next Friday, the Commission, which in early 2006 had faced the gas emergency that followed the fight between Russia and Ukraine, had set up a high-level group (Ghn) about "competitiveness, energy and environment", to "coordinate political and statutory actions" in these areas of EU economy.