1. Angela Merkel
Commentary: EU Energy Strategy - The German Perspective
By Angela Merkel
In the coming years, this opportunity. The challenge for Europe,
the European Union faced with rising global energy demands and
will face major energy the resulting increasingly fierce competition for
challenges. Demand is access to energy sources, is to devise a balanced
increasing worldwide; strategy for the future.
this is the result of global
population growth, and, more importantly, the With a common European energy market, it
rising energy needs of populous countries such will be increasingly important to define and
as China and India. Fossil fuels, like oil and pursue common European objectives. If we
natural gas, are still abundant, but resources wish to strengthen Europe’s position in terms of
are concentrated in a few regions, frequently energy and economic strength, we must work to
plagued by political and economic instability. integrate national and European energy policy
The strong demand for scarce energy stocks more closely, to harmonise the conditions of
creates a problem for industrial countries with doing business, and to bring about a market-
few resources of their own; that includes Europe. oriented policy. At the level of the Member
European dependence on imports of fuels such States, a competition-driven energy mix is called
as oil, natural gas and coal will continue to for. To minimise risks associated with security of
increase. provisions and prices, energy supply needs to be
diversified: more sellers, more suppliers, more
The spectacular rise in energy prices reflects these energy sources.
increasingly tense conditions. It causes hardship
for household consumers, of course, but it also Developments on the energy markets make it
hinders industry’s ability to compete. The goal necessary for the European Union to take a more
of energy policy is to ensure that manufacturing, decisive and coherent stance in the international
the economy and the private sector have reliable, arena on energy questions. Our intention is to
secure access to affordable energy, the sine qua foster more, and closer, political and economic
non for prosperity and growth. ties with countries that provide us with energy
or transit routes for energy shipments.
The security of supplies is therefore of
immense importance, in Germany and Europe. Another major task will be to strive to achieve
Recognising the need for Member State action at functioning competition in the energy sector,
the European level, the European Commission with the goal of limiting price growth. European
issued a Green paper, in March of this year, markets for electricity and natural gas are growing
on a common energy policy for Europe. The together, and we have seen dynamic development
priorities it identified—security, sustainability since the start of market liberalisation. However,
and competition—are all equally important; further efforts are indispensable. Barriers to
none of them can be viewed in isolation. In competition must be removed and access to
assuming the presidency of the European Union the infrastructure made as open as possible,
and the G8 next year, Germany will have a within the European regulatory framework, and
unique opportunity to help shape European and networks must be integrated; these are important
international policy accordingly, for assured, steps on the road to an economically revitalised
sustainable energy supplies. We intend to seize Europe.
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Volume 4 - November 2006