27-10-05
Energy market liberalisation across the European continent took an historic
step forward with the signing in Athens of a treaty expanding the EU single
market in energy to the Western Balkans.
The Energy Community South East Europe Treaty is the first multilateral treaty
to cover all countries in South East Europe. It will bring the benefits of
market liberalisation to new customers and create a stable market for
investment.
UK Trade and Industry Secretary Alan Johnson, who signed the Treaty on behalf
of the EU Presidency, said:
"This is the first treaty of its kind. It uses the common denominator of energy
policy to bring the countries of the region together and will provide an
important catalyst for further governmental cooperation in the future.
"The Treaty is good news for security of energy supply in the region because
it will provide a stable climate for investment in infrastructure. It has
already led to a commitment from the World Bank to provide $ 1 bn worth of
'fast-track' loans to assist investments throughout the region, which will
provide new opportunities for companies in the UK and EU.
It encourages mutual assistance in the region if problems occur in the future
and should lead to lower energy prices as a result of greater competition."
Secretary of State for Trade and Industry Alan Johnson officially signed the Energy Community South East Europe (ECSEE) Treaty in Athens on behalf of the EU Presidency together with Mr Kostas Karamanlis, the Greek Prime Minister, Mr Andris Piebalgs, European Commissioner for Energy and Mr Erhard Busek, Special Co-ordinator on behalf of the Stability Pact and a representative from Bulgaria on behalf of the countries in the region.
A stable and reliable supply of energy is one of the prerequisites for
sustainable economic development and social stability. In South Eastern Europe,
the conflicts of the 1990s inflicted further damage on, and in some cases
destroyed, an already ill-equipped, outdated and inefficient energy
infrastructure. Therefore power cuts and partial blackouts are all too familiar
events in the region -- events that damage economic development and ones that
can lead to social unrest. Significant investment in the energy infrastructure
is needed in this region.
The Energy Community in South East Europe Treaty aims to create a single stable
regulatory framework for the trading of energy across borders through ensuring
that the South Eastern European (SEE) countries adopt the EU's single market in
areas such as energy, environment and competition.
The economic impact of this will be to create a larger, predictable market
that is attractive for investors. Regional co-operation reduces costs and
improves efficiency for individual states. A modern market that provides a level
playing field for all participants and one that increases the reliability and
security of the energy systems. For the EU and SEE, an energy community provides
an important geopolitical opportunity to diversify supply routes for different
forms of energy and reduce reliance on one or two sources of supply.
The Treaty uses the common denominator of energy policy to bring countries of
the region together in a legally binding forum of co-operation, modelled very
loosely upon the structures of European Community itself. Implementation will
result in the countries of SEE becoming part of the EU's internal market in a
key economic sector before their accession to the EU. It is hoped that this will
provide an important catalyst for further governmental cooperation within the
Balkans region.
The signatories will be the European Union (represented by the UK who
currently holds the EU Presidency), Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, the former Yugoslav Republic of Macedonia, Romania, Serbia and
Montenegro and the Special Representative of the Secretary General on behalf of
the United National Interim Mission in Kosovo.
Moldova has observer status.
Source: I-Newswire