Posted on 03/24/2006 7:59:08 AM PST by Michael81Dus
Angela Merkel, Germany’s chancellor, on Thursday issued a thinly veiled warning to France and Spain to open their energy markets, as a dispute over protectionism overshadowed the start of a European Union summit.
Ms Merkel said that Europe needed continent-wide industrial champions, and that attempts by member states to ring-fence their national energy companies made nonsense of the EU’s single market.
“We can only have an internal market when electricity flows freely and when we accept European champions and don’t just think nationally,” she said at the start of the two-day summit.
Ms Merkel’s intervention came as the EU’s 25 heads of government gathered for their first meeting since the row over protectionism in the energy sector erupted earlier this month.
The Austrian EU presidency wants the summit to focus on developing a new EU energy policy, an issue discussed over dinner on Thursday night. The meeting will also discuss measures to help the creation and development of small businesses, and efforts to reduce youth unemployment.
But Ms Merkel is among those continental leaders who believe a European energy policy is impossible unless member states agree to create a genuine single electricity and gas market, with cross-border grids and industrial takeovers.
Ms Merkel is annoyed with Spain, which is opposing a takeover of Endesa, the Spanish utility, by Eon of Germany.
Meanwhile Silvio Berlusconi, Italy’s prime minister, has accused France of trying to block a takeover by Enel, the Italian utility, of Suez, its Franco-Belgian rival. Paris intervened by merging the state-owned Gaz de France with Suez.
Mr Berlusconi said on Thursday he would not create a row over the issue at the summit and that the matter now rested with the European Commission, which polices the EU’s single market and competition policy.
But one of Mr Berlusconi’s coalition partners, the parliamentary speaker Pier Ferdinando Casini, said: “Either you are a pretend European, and therefore in favour of protectionism and nationalism, or else you are a real European and want to stimulate competition.”
The proposed EU energy policy, although supported in principle by member states, is already under strain, with some capitals opposing a new European energy regulator to promote cross-border energy trading. Some also have doubts about the development of an EU emergency gas reserve.
The economic summit comes at a time of concern in some European countries about globalisation. Resistance to reform has been illustrated by mass demonstrations in France over new employment contracts for young people, offering less job security.
The proposed French changes on Thursday won the backing of Joaquín Almunia, EU monetary affairs commissioner. “The new contract will help young French people get their first job and prove their worth,” he said.
Wolfgang Schüssel, Austria’s chancellor and the summit host, hopes to contain tensions over protectionism and focus on a positive economic agenda, including proposals to make it easier and cheaper to start a business in Europe by creating one-stop shops in each member state.
However, many member states are urging Mr Schüssel to remove firm commitments from the final summit communiqué, fearing that it will simply leave the EU open to further claims that it is better at promising results than delivering them.
You´re right, it´s a coincidence. Still, she´s right.
"You´re right, it´s a coincidence. Still, she´s right."
She is right.
And an Italian company that wants to take over a French one, if I recall.
No she's not, she's a typical globalist/socialist. Why doesn't she do what the countries did that the EU states want to take over or suck the life from?...Build her own.
"No she's not, she's a typical globalist/socialist. Why doesn't she do what the countries did that the EU states want to take over or suck the life from?...Build her own."
I don't think arguing for open markets within the EU and for stock in public companies to be freely traded makes one a socialist. By European standards, she is quite conservative.
I might agree with you if she was trying to open German electricity markets to sell to the other nations but that's not what the article implies. And, I didn't see anything about stocks in public companies either, those are your words.
Texas has their own electricity grid, does that make them protectionist?
By European standards, she is quite conservative.
Apparently by yours as well.
If you have not read up on the Christian Democrats - this is decent intro- basically she ran on a flat tax rate, cutting the welfare state, somewhat closer relations with the U.S. and free trade.
http://www.conservativefuture.com/news/story.cfm?obj_id=124957&type=news
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