How does the European Commission foster the integration of the energy market?

Résumé du document

The European Union (UE) proves to be an efficient exporting actor for the goods and services market. However, its capital account remains negative in the energy market. UE's growing dependency on gas and electricity suppliers is becoming an economic and strategic weakness for the business environment. The Union's institutions have established an agenda to stabilize the issue. The European Commission traditionally supports a greater competition the energy market. The aim is to create a mechanism to unite the market.

But the ambitious ideas face an unavoidable disruption caused by the European economy – the resistance by its member states. The question is to which extent is the Commission's action in the field of energy following or reshaping the evolution of a vital market?

The Commission's agenda clearly reveals its commitment towards market integration even though its mergers seem to destabilize the states that tend to defend their national interests. The European institution de facto adapts its action to the realities of both the business trends and influenced by the states.

Extraits

[...] What is the extent of the Commission's effective power of control and legislation on the energy market? In terms of competition, the Commission plays the part of a referee that observes the regularity of the game between the participants. It has the judicial power to control the quality of mergers in order to detect anti-competitive behaviours. The energy stock market is regularly shaken by notices of agreements between European groups, nevertheless the European energy business environment is mainly concentrating on national basis. [...]

[...] Analysts show how the market is dominated by a handful of companies that possess strong national basis. Their current strategies of concentration destabilise the European energy organisation.[4] Facing these activities, the Commission is conscious that the control of competition represents only a part of a larger strategy. That is why the Action Plan creates a set of obligations and constraints. Apart from its traditional control of mergers, the Commission possesses the legislative power to produce rules that push towards the integration of energetic activities. [...]

[...] BARROSO (president of the European Commission. Andris Piebalgs is European Commissioner for Energypresident of the European Commission. Andris Piebalgs is European Commissioner for EnergyPresident of the European Commission ) and A. PIEBALGS ( European Commissioner for Energy International Herald Tribune, March Parliament and Council Directive 2003/54/CE, June 26th 2003 “Enel et E.ON bousculent l'Europe de l'énergie”, P BOCEV, D. CAMBON, F. de MONICAULT, Le Figaro, April J. [...]

[...] An Action plan[1] follows the guidelines of the Green Paper issued in 2006 and was approved at the European Council which took place in March the 8th and 9th 2007. According to José Manuel Barroso and Andris Piebalgs, the plan aims at getting a “sustainable, competitive and secure energy”[2]. The media put the stress on the impressive commitments about environmental issues. However one shall focus here on competition and integration. The Commission fosters competition to promote the consumers' interests and the efficiency of the market so as to grant better prices and choice for the consumer. [...]

[...] Another example of the Commission's art of compromise concerns the integration of the market through the unbundling process. In this case, the Commission again faced the opposition of two old weighty members of the Union: France and Germany. Both countries were opposed to the decision which would dismantle their giant public groups. The importance of unions in the sector added to the States' interests in modifying the European measure. They were backed by national groups such as Gaz de France and E.ON in their support of an alternative proposal. [...]