energy security

Friday’s summit of European heads of government has long been signposted as one of European Council president Herman Van Rompuy’s new interim conclaves to deal with a policy issue of crucial importance to Europe, in this case energy security.

But as many diplomats predicted, energy is increasingly getting drowned out by other, more pressing demands.

First, José Manuel Barroso, the European Commission president, called on the summit to be used to hash out an overhaul of the eurozone’s €440bn sovereign debt bail-out fund so it’s able to more flexibly deal with bond market assaults on struggling “peripheral” economies.

Although that won’t happen, Van Rompuy has agreed to turn over the summit’s traditional working lunch to the eurozone crisis, and Angela Merkel, the German chancellor, has decided to use the opportunity to float a new plan for greater coordination in economic and fiscal policies among eurozone countries.

Now, it seems, the afternoon is being taken over by yet another crisis: Egypt. Read more

What should be the top five priorities of the next European Commission?

1) Top of my list is the defence, and if possible the strengthening, of the single European market.  This is the European Union’s bedrock achievement.  It secures prosperity for its citizens, and it underpins the EU’s collective weight in the world.  Without the single market, the EU would lose not merely its cohesion but its very reason for existence.  The single market is under strain at present because of the emergency measures taken over the past year to prop up Europe’s banking system.  These have, in effect, suspended the EU’s state aid rules in this sector.  The Commission will need to be tough in making sure that EU governments do not manipulate the rules as the emergency measures are gradually withdrawn.  Meanwhile, it should continue to press the case for integrating and liberalising the EU’s service sector, which accounts for two-thirds of all EU economic activity. Read more