Merkel eyes 'very difficult' talks on energy liberalisation
By Honor Mahony
Germany has admitted that there is likely to be a strong battle over European Commission plans to revamp the EU's energy sector but has pledged to push for concrete results and act as an honest broker during its EU presidency.
Speaking before the European Parliament on Tuesday (13 February), chancellor Angela Merkel gave a boost to Brussels' energy plans which have been coming under attack both for trying to liberalise the sector and for trying to set binding renewable energy targets.
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"We are going to have some very difficult discussions on the strengthening of the internal market," admitted the chancellor with an EU summit devoted to energy just three weeks away.
But she said she would "work" on the issue saying it is essential that the EU has a "highly performing internal market."
Her words come as France and Britain have started a war of words over the merits of "unbundling" – loosening the ties between production and distribution of energy – something the commission sees as essential for bringing competition into the EU's energy market.
France is essentially plugging for the status quo, whereby large electricity firms such as its own state-owned EDF control both production and distribution - a stance Britain has called market-distorting.
But Berlin will not bring its own wish-list into this already volatile mix, the chancellor indicated.
"Germany is going to have to accept compromises which will not be easy for us."
"It would be an error if we were to continue to pursue our own interests and we're not going to make that mistake," she continued.
Up until recently German ministers and officials had openly voiced opposition to Brussels' plans, particularly late last year before the country took over the EU presidency.
However, Berlin has come in for some heavy flak recently for appearing to use its presidency to defend national interests against a separate commission plan to cap CO2 emissions from cars and for challenging a CO2 emissions reduction for its industry.
Falling in line with the commission, Mrs Merkel said she would also "insist on agreement on specific quantified targets," referring to alternative energy sources.
Brussels has proposed that member states be forced to generate 20 percent of their energy using alternative sources such as wind power by 2020 – a goal that is being opposed by several countries who do not want binding targets.
Commission president Jose Manuel Barroso, meanwhile, called on governments to stop making nice statements and commit to firm action. "We do not need declarations of intentions but what we need is commitment."
"We face decisive tests in the near future, starting with the energy and climate change package in the European Council in March."
After EU leaders debate the matter, the commission is to come forward with concrete legislation proposals which will then have to get by member states and the European Parliament.
Some senior EU diplomats are however pessimistic that member states will be able to reach agreement at the March summit, with energy ministers gearing up for a preparatory meeting this week.