Unbundling Of European Energy Markets Not If The French And Germans Get Their Way
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Unbundling European Energy Markets: A Battle with France and Germany
Summary:
In June, French President Nicolas Sarkozy successfully convinced the EU to remove its commitment to free and undistorted competition from its reform treaty. While Competition Commissioner Neelie Kroes argues this change will not affect Brussels' strong stance against unfair practices, many legal experts believe it might weaken the Commissioner's ability to challenge cartels and illegal subsidies.Article:
At the Brussels Summit in June, French President Nicolas Sarkozy achieved a significant shift by convincing the EU to eliminate its commitment to free and undistorted competition from the reform treaty. Despite Commissioner Neelie Kroes insisting that this change will have minimal impact on Brussels' rigorous approach against cartels, illegal subsidies, and protectionism, many legal experts argue that it may reduce the Commissioner's power to tackle these ongoing issues.
Adding to the tension, France's Europe Minister, Jean-Pierre Jouyet, made inflammatory remarks following the merger between GDF and Suez. He suggested that this merger epitomizes a vision for Europe's energy policy, a sentiment likely to frustrate Kroes, who meticulously examined the merger to prevent any negative impact on competition, ensuring asset disposals and concessions were foundational conditions for the deal.
Jouyet further highlighted the rift between Paris and Brussels, stating that Kroes's unbundling plan was an "ideological view," whereas France had a "strategic view" for balancing European interests with competition rules.
Amidst these public and sensitive developments, Kroes remains steadfast in opposing the protectionist policies of France, Germany, and Spain. Although she kept silent during summit negotiations, observers believe she and her team were concerned about the lack of response from liberal countries like Britain and Sweden, as well as European Commission President Jose Manuel Barroso. Barroso previously believed that removing competition as an objective had no legal impact since the policy was mentioned elsewhere in the treaty, but the French government and other legal experts disagreed.
Regardless of these legal debates, the Commission is set to propose detailed plans for overhauling EU energy market regulations. EU Energy Commissioner Andris Piebalgs is expected to recommend that member states force integrated groups to sell their electricity grids and pipeline networks?"a crucial step towards unbundling. However, how far this initiative advances will largely depend on the influence of powerful French and German lobbies.
So, why should a business in a single EU member state care about competition policies across the EU? Attempts to stifle competition will significantly impact the UK market. As the UK relies heavily on Europe for energy and the practice of pegging wholesale gas prices to oil prices distorts the market, breaking up dominant forces is in the UK's best interest.
Currently, the Commission is investigating examples of market distortion, including withholding production capacity in electricity markets to raise prices. Commentators have also identified electricity balancing market abuses, which harm new entrants and smaller players who depend on these markets, restricting their growth potential.
You can find the original non-AI version of this article here: Unbundling Of European Energy Markets Not If The French And Germans Get Their Way.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.