Prodi: EU needs energy market result at summit

Date: 14/03/02

By David Cronin

ROMANO Prodi is urging EU leaders to reach a landmark deal on opening up energy markets to competition at this weekend's Barcelona summit.

Although France has scuppered hopes that a move towards wholesale gas and electricity liberalisation could be secured, the European Commission president yesterday indicated he would be happy with an accord that limits such opening to energy for business use.

Speaking yesterday (13 March), Prodi said commercial customers account for more than half of all electricity consumed in the 15 member states, so opening that section of the market would be a huge step. 'I don't think we can underestimate the significance of that,' he said.

Energy liberalisation is regarded as essential to meet the objective set by EU leaders at the 2000 Lisbon summit of turning the Union into the world's most competitive economy. But it is vigorously opposed by the powerful trade union lobby in France, making it virtually impossible for Paris to approve a full liberalisation package before the forthcoming presidential election.

Prodi also insisted that EU leaders must remove obstacles to an agreement on increasing their aid to the world's poorest countries before or during the summit.

• About 8,500 police will be on duty in the Catalan capital amid speculation that Basque terrorist group ETA will strike during the summit.

Anti-globalisation activists have, meanwhile, signalled their willingness to avoid violent confrontations with Spanish police.

Romano Prodi is urging EU leaders to reach a landmark deal on opening up energy markets to competition at the European Council in Barcelona, 15-16 March 2002.