Merkel calls for compromise on energy markets

STRASBOURG - German chancellor Angela Merkel has called on EU governments to be flexible over plans to open Europe's energy markets.

Addressing MEPs in Strasbourg on Tuesday, Merkel said opening Europe’s energy and gas markets to more competition would be difficult, but was a key aspect of a future EU energy policy.

"We are going to have some very difficult discussions on the strengthening of our internal market to ensure it is more competitive,'' she said.

"Germany is going to have to accept compromises, which will not be easy.''

The European commission wants to break up Europe's monolithic energy giants into separate businesses covering production and distribution to allow easier market access for smaller energy companies.

But the idea is being opposed by France and Germany, and is expected to be a controversial topic at the upcoming spring summit on 8-9 March.

The Brussels summit, organised by the German EU presidency, will focus on developing an EU energy policy.

Merkel reiterated the EU goal of cutting CO2 emissions by 30 per cent by 2020.

“The German presidency will insist on specific quantified targets for the EU – we do not want to leave things vague,” she said.

Merkel also insisted that the EU's international partners must also pull their weight in the fight against global warming.

She added that the German EU presidency will work on a new cooperation agreement with Russia, and said she hopes to have made progress in time for the EU-Russia council in May.

Commission president José Manuel Barroso, who spoke after Merkel, firmly called on EU governments to support the EU’s drive for a common energy policy.

“Many politicians in the EU profess a love for Europe, but oppose EU solutions in areas like energy and the fight against climate change,” he said.

“We don’t need declarations of intentions, we need commitment.”

But Merkel was criticised by parliament’s Socialist group leader leader, Martin Schulz, who said her words in favour of the fight against climate change were undermined by her recent opposition to stringent caps on CO2 emissions from cars.

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