European Common policies Prepared by Dr. Endre Domonkos (PhD) 2013/2014. Academic Year, Spring Semester

I. Development of energy policy I. The Treaty of Rome: Member States didn’t want to ‚communitise’ energy policy. Energy policy: Member States’ competence. The outbreak of the 1973 crisis: Dependence on imported crude oil In 1974, the European Commission presented a common energy strategy, which was approved by the Council.

I. Development of energy policy II. The consequences of the two oil crisis in the 1970’s: The need to strengthen the energy policy at Community level. The Venice Summit (1980): the rate of growth of internal energy consumption couldn’t exceed 60% of Community economic growth. The Commission’s White Paper (1986): comprehensive energy policy objectives. Energy policy: integral part of the single market. Energy policy guidelines of the Commission (1995).

II. The Energy Charter 56 signatories – mainly former Communist countries -. Energy Charter: important complementary role to EU energy policy activities. Main aim: to provide the necessary conditions for Western investments in Central and Eastern Europe and in Central Asia. In 1995, the signatories of the Charter adopted a legally binding agreement. Problem: Russia didn’t ratify the Energy Charter.

III. Energy policy at the turn of the millennium I. In the second half of the nineties: primary objective of energy policy was to liberalise the energy sector. Investments introduced in the framework of the trans-European networks. Liberalisation of the energy market: important element for the completion of the single market. Lisbon Strategy: emphasis on liberalisation of gas and electricity markets.

III. Energy policy at the turn of the millenium II. The Barcelona Summit of 15-16 March 2002: In 2003, the Council and Parliament adopted Directives 2003/54/EC and 2003/55/EC, which laid down the exact schedule for liberalization in the electricity and gas sectors. The development of trans-European energy networks. Guidelines + 74 different projects. Energy policy: multi-annual framework action programmes.

III. Energy policy at the turn of the millenium III. In December 1998, the Council adopted a multi-annual (1998- 2002) framework programme for the development of the energy sector. For the 2003-2006 period, the EU adopted a new multi-annual action programme, with the name of Intelligent Energy – Europe Programme (IEE). The Intelligent Energy – Europe Programme 2003-2006 was divided into the following four specific sub-programmes: - SAVE; - ALTENER; - STEER; - COPENER; 

IV. Energy Community The EU’s main aim is to create a pan-European energy market. The creation of an Energy Community. Extension of the European Union’s energy market to South-East Europe. The Treaty entered into force on 1 July 2006. Investments in energy infrastructure + ensuring non-interrupted energy supply. Secretariat is located in Vienna.

V. The beginning of a new European energy policy I. After the turn of the millennium: important steps were taken in the field of energy policy. Reasons: growing dependency on imported energy + the role of fossil fuels in the energy consumption. To fight against global warming as another key factor The Commission’s Green Paper on „A European strategy for sustainable, competitive and secure energy”, published on March 2006.

V. The beginning of a new European energy policy II. Six priority areas of the Green Paper: 1. Completing the internal energy market:   2. Security of supply and solidarity between the Member States 3. Towards a more sustainable, efficient and diverse energy mix 4. To tackle climate change. 5. Set up a strategic energy technology plan. 6. Coherent action in external energy policy.

V. The beginning of a new European energy policy III. The European Council of 8-9 March 2007 brought a new turn in energy policy. Energy Policy Action Plan for the period 2007-2009: Five priority areas: 1. The internal market for gas and electricity 2. Security of supply 3. External energy policy 4. Energy efficiency 5. Energy technologies

V. The beginning of a new European energy policy IV. 20-20-20 targets: binding commitments by a package of six legislative acts adopted by the Council and the EP in December 2008. The Europe 2020 Strategy: resource-efficient Europe The main element of this package was the Directive 28/2009/EC. In November 2010, the Energy Strategy was published by the Commission

V. The beginning of a new European energy policy V. The five objectives of the Energy Strategy: 1. Achieving an energy – efficient Europe; 2. Building a truly pan-European integrated energy market; 3. Empowering consumers so as to achieve the highest level of safety and security; 4. Extending Europe’s leadership in energy technology and innovation; 5. Strengthening the external dimension of the EU energy market.

V. The beginning of a new European energy policy VI. Development guidelines to improve the interconnection of gas and pipelines and electricity grids. Energy summit: it was held in February 2011. Fully working, interconnected and integrated energy market. Directives adopted in summer 2009 on energy liberalisation. Main aim: the completion of an integrated European energy market. Unbundling and market surveillance

VI. Energy policy in the Treaty of Lisbon Energy policy: shared competence between the EU and its Member States. The legal basis for the Union’s energy policy is now laid down in a separate title. Key novelty of the TFEU: solidarity in the area of energy supplies + mutual assistance by the Member States in the case of severe difficulties in the energy supplies of one or more Member States. DECISION-MAKING: ordinary legislative procedure.

VII. Literature - Zoltán Horváth (2011): Handbook on the European Union, Hungarian National Assembly, Third Edition, Chapter 16., Energy policy, Hvgorac, pp. 443-457. - Zoltán Horváth – Bálint Ódor (2010): The Union after Lisbon. The Treaty Reform of the EU. Chapter 8: The Union’s policies, Hvgorac, pp. 262.