The World from Berlin: The EU's Energy Revolution - DER SPIEGEL
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The World from Berlin The EU's Energy Revolution

The European Commission has proposed a radical new energy policy. It wants to cut emmissions, increase reliance on renewables and most controversial of all, separate energy production from distribution. The German papers have reacted with scorn, skepticism -- and favor.
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The European Commission unveiled a comprehensive new energy policy in Brussels on Wednesday, which proposed emissions targets for tackling climate change and outlined long-term energy goals for the 27-member bloc.

Announced by Commission President José Manuel Barroso, the proposed energy policy includes cutting carbon emissions by 20 percent by 2020 and also setting a target of 20 percent of the EU's energy to come from renewable sources by that date. He also said that the EU favored the separation of energy production and distribution.

With growing concerns over both global warming and dependency on foreign suppliers for the bloc's energy needs, the EU Commission is attempting to coordinate a common energy policy among all 27 member states. However, the European governments will have to sign up to the common energy policy before it can come into force.

This may be difficult to achieve, as member states have traditionally set their own energy policies. Perhaps the most controversial suggestion by the commission was that of separating the production and distribution of energy, in order to increase competition and create a true internal energy market. This would in effect mean that companies producing energy would no longer control the pipelines or powerline networks. This policy is not favored by Germany or France.

The German press reacts to the radical program with a mixture of scorn, welcome and skepticism.

According to financial daily Handelsblatt Barroso has sprung a big surprise but hasn't told the whole story:

"The EU commission president wants to take supply networks away from energy companies, to set the 27 member states ambitious targets for climate protection and for renewable energy, and wants Brussels to set the direction of the EU's foreign energy policy.

"One can read the usual Brussels alarmism into the policy and come to the conclusion that (Barosso) is nuts. Or one could see it as kicking off a long overdue debate. For example, about the possibilities for making the EU less dependent on its politically unstable energy suppliers. Or about the future role of nuclear energy. Or even about whether true competition in the energy market is only possible with a division between production and supply. The pipeline blockade , the warm winter, the excessive electricity prices -- there are enough reasons for changing direction.

"But Barroso dodged the most important question -- what will and what should energy cost in future? His policy paper promised lower prices through more competition. At the same time it calculates the build up of renewable energy will cost billions. It would have been better if Barroso had told the uncomfortable truth: Energy will become more expensive, and it has to, so that it is used with more responsibility."

The left-leaning daily Die Tageszeitung welcomes the EU Commission's plans for what it sees as a revolution. But:

"It's one thing to announce a revolution, but quite another to carry one out or even win one. The EU has weapons to push through its aims: directives .... But if Germany or France don’t agree with the plan to breakup their electricity companies, they can block the plan with a veto. And Paris and Berlin have already called for a counter-revolution.

"But the latest findings on the state of global warming are behind the revolution planned in Brussels. They are so dramatic that the commission is making clear for the first time: There can be no more "same as usual" -- radical steps are inevitable.

Chancellor Merkel is in a dilemma. She had announced that climate protection would be promoted during Germany's presidency of the EU. If she now blocks the EU Commissions plans, she will go down in history as a counter-revolutionary."

The conservative Die Welt reacts sharply to the EU plans for the energy sector:

"The EU commission has announced a general strike on the energy industry: Commission President Barroso is demanding nothing less than the destruction of energy companies.

"The radical suggestion throws up questions about its implementation. Who should buy the networks? Should the Russian giant Gazprom, or even the state-run Electricité de France be allowed to purchase German gas pipelines and electricity networks? That would bring little to the consumer.

"That an institution such as the EU Commission, which is only indirectly democratically legitimate, should demand such wide-reaching expropriation of property is highly questionable. Because in our economic system property is protected for good reason.… More competition can also be achieved without such drastic measures."

-- Siobhán Dowling, 12:45 p.m. CET