Constitution clouds over EU energy policy

Rejection of the European constitution means “political will” not EU treaty law will be the basis of Europe’s new energy policy, Brussels has admitted.

The European commission on Wednesday conceded that EU energy policy will depend on common purpose between national governments.

A draft Europe constitution gave the EU energy powers but the text is on ice after French and Dutch no votes.

Commission president José Manuel Barroso stressed that the EU did have some legal powers to act but would need cooperation.

“We have the instruments. We need to have the political will,” he said while launching an energy policy green paper on Wednesday.

“That is the question we will put to the spring council: do we have the political will to forge an EU policy?”

Previous commission attempts to engineer an EU energy policy fell foul of 1997 legal advice questioning the European treaty basis of such a move.

But Barroso believes high oil prices, supply problems in conflict zones and EU gas disruption caused by a Russia and Ukraine dispute has shifted the balance.

“The whole issue has become much more urgent and I think we have the political conditions to make progress,” he said.

“It is true we do not have the constitution… we do not have that but nothing stands in the way of the commission taking the initiative, making strategic proposals and member states following that.”

“I tend to be optimistic member states themselves have asked us to table proposals for a common strategy.”

But fierce in-fighting over energy mergers has broken out in recent weeks casting a shadow over EU moves to develop a common energy policy.

France versus Italy and Spain versus Germany blocks to market liberalisation have raised a question mark over the EU’s ability to deliver on long-standing free market rules – let alone a new energy policy.

Barroso insists that the merger rows are a shake out as Europe’s economy picks up speed.

He highlights figures showing that EU energy mergers in the first two months of 2006 were worth 7bn, almost as much as the 2005 total of 0bn.

“What is happening in Europe is the birth pains, the growing pains of the single market… Do not lose sight of the main tendencies. I think all trends are for a European approach.”

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