High level group on competitiveness, energy and the environment

Brussels, 30 October 2006

To be checked against delivery

Chairman, I identify with the general approach of the report and the points that our energy model currently is not sustainable, that new energy investments are required, and that energy efficiency and renewable must play an important part in Europe's energy future. I am also convinced that the EU should set itself long term and medium targets for the reduction of greenhouse gas emissions, to provide the private sector with the right incentive to invest in low carbon technologies. Therefore, I am in favour of keeping the recommendations n°2 and n° 3 page 4 of the report.

On other points, I have to be less positive and I hope that these can be addressed

- Energy intensive industries are under considerable pressure from high and volatile energy prices and insecure supply of energy- and using this as a reason to close in the EU and move elsewhere. The employment implications and the de-industrialisation are horrendous. The draft report seems confident that the energy investment required will somehow ‘miraculously' materialise in a fully deregulated market. I do not. A free market means free entry and exit for companies. Companies have no obligation to invest! How high will the energy prices have to be, or how light the regulatory framework to give companies a sufficient incentive to invest? What will be the impact on industrial and individual consumers, especially the vulnerable ones, and the impact on employment?

- We do not in this report deal really with the external supply situation, although we do rightly cover the use of innovation and new technologies. One key to the supply problem is the EU-Russia relationship. We need a common position, both between ourselves, and then with Russia. Perhaps we could take an old lesson from the European coal and steel community and set up an energy commission in Europe.

- the transition to a low carbon European economy will not happen without a pro-active social agenda, including training and retraining of people to work in the new sectors technologies, investment in excellent industrial relations and so on. We don't want any repeats of the rapid rundown of coal which have disfigured some countries socially. The European Social Dialogue is relevant here. Social cohesion and quality employment are central objectives of a sustainable European Energy policy just as much as the three words in the title of our report. We should find ways of reflecting this in our future work, notably by setting up another Ad Hoc Group. The group should also recommend an European initiative on European vocational training and educational initiative on energy efficiency and on low carbon energy technologies, as recently proposed by the Commission in its Energy efficiency action Plan.

30.10.2006
Discours