EURO-MEDITERRANEAN CO-OPERATION ON TRANSPORT
AND ENERGY
(22276)
7131/01
COM(01) 126
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Commission Communication on enhancing Euro-Mediterranean co-operation on transport and energy.
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| Legal base: |
— |
| |
| Document originated:
| 7 March 2001 |
| Forwarded to the Council:
| 8 March 2001 |
| Deposited in Parliament:
| 5 April 2001 |
| Departments: |
Trade and Industry and Environment, Transport and the Regions
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| Basis of consideration:
| EM of 24 April 2001 |
| Previous Committee Report:
| None |
| To be discussed in Council:
| May 2001 Industry and Energy Council
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| Committee's assessment:
| Politically important |
| Committee's decision:
| Cleared, but relevant to the debate already recommended in European Standing Committee B on the Barcelona Process
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Introduction
16.1 The Commission describes the objective
of this Communication as to define the broad lines of Euro-Mediterranean
co-operation on transport and energy, for the period 2000-2006.
At their conference in Malta in April 1997, the Euro-Mediterranean
Ministers for foreign affairs identified transport and energy
as two of the six priority sectors for regional co-operation under
the heading of the economic and financial partnership.[29]
The Commission says that the Communication is designed, firstly,
to inject new momentum into the Euro-Mediterranean partnership
in the transport sector and, secondly, to boost the existing momentum
of the partnership in the energy sector.
16.2 The broader context of the Communication
is that of the Barcelona Process. The Nice European Council in
December confirmed the EU's commitment to developing the partnership
and the Commission has decided to make the Mediterranean one of
its priority objectives for 2002. In its Communication, Reinvigorating
the Barcelona Process,[30]
it made several recommendations on transport and energy. It now
summarises these as:
"— promotion of South-South and sub-regional
co-operation (by sub-region: Maghreb, Mashraq, or any other sub-group
of Mediterranean partners);
"— the new approach recommended for
infrastructure financing (joint funding MEDA (grants)/loans from
international financial institutions (notably EIB and World Bank)/national
governments/private sector); and
"— the need for greater complementarity
between regional and bilateral co-operation in the framework of
MEDA, notably by transferring the results of regional programmes
for the MEDA bilateral programmes."
16.3 The Commission says that the Communication
we consider here should also be seen in the context of its overall
review of the security of the energy supply in the EU, Towards
a European strategy for the security of energy supply,[31]
and the draft White Paper on a common transport policy.[32]
The Commission Communication
16.4 A further aim of the Communication,
according to the Commission, is to take stock of five years of
Euro-Mediterranean co-operation on transport and energy, and to
propose ways of enhancing this co-operation, on the basis of experience
gained.
The transport sector
16.5 A package of regional projects on sea
transport was approved in 1997 with MEDA funding of 8.4 million
euros. The projects mainly concerned technical and safety aspects,
including dangerous goods and waste collection, port information
systems, hydrographical studies and flag state policy. Some of
these projects have been completed but others have been delayed
"for administrative reasons that will be resolved shortly".
16.6 Advocating greater use of the Euro-Mediterranean
Transport Forum, the Commission sets out a number of areas in
which specific measures could be taken to re-launch co-operation
in the transport sector. These include:
- support for reform of sectoral policies which
do not allow for sufficient competition and have inadequate institutional
and regulatory frameworks, as well as excessive state influence;
- the creation of a favourable climate for private
investment in the southern Mediterranean through measures such
as the approximation of social, technical, environmental and safety
standards, modernising the management of traffic flows and improving
the interface between transport services and the customs and immigration
authorities and the banking and insurance sectors;
- examining ways to improve maritime and aviation
safety through stricter control of classification societies, the
establishment of a vessel monitoring, control and information
system and the introduction of double-hull tankers. Air traffic
management could be supported through co-operation on the acquisition
and mastery by the Mediterranean Partners of the new techniques
being put in place in the EU;
- improving short-sea shipping services with faster
ships and administrative procedures;
- liberalising air transport; and
- studying ways of associating the Mediterranean
Partners with Galileo, the second generation European satellite
navigation and position system which is planned to become operational
in 2006.
The energy sector
16.7 The Commission gives two main reasons
for developing close collaboration with the 12 Mediterranean Partners[33]
in the energy sector:
- geographical proximity to Europe's southern flank
is a crucial factor, given the importance of transit of energy
sources from other neighbouring regions such as the Gulf and Caucasus;
and
- the cumulative volume of oil and gas reserves
in the Mediterranean Partners is an important guarantee of supplies
to the EU.
16.8 The Commission concludes that the Mediterranean
Partners are at a stage where their energy sectors require radical
adjustment. They are still generally dominated by centralised,
state-controlled monopolies. This is a major disincentive to foreign
direct investment, which is crucial for increasing production,
particularly in electricity. There should be convergence of the
energy policies of the EU and the Mediterranean Partners and the
EU should make every effort to encourage the Mediterranean Partners
to accede to the Energy Charter Treaty as a reference framework
for the security of supply and promotion of investment. Further
consideration should also be given to enlarging INOGATE[34]
to include them. This is an EU programme to promote the construction
and interconnection of oil and gas transport infrastructures between
the EU and the regions of the Caspian Sea, Black Sea, Mediterranean
and South-East Europe.
16.9 There is also a need for:
- the Mediterranean markets to integrate and develop
interconnections; and
- the promotion of a sustainable development model,
including the use of renewables.
16.10 To ensure a continuous dialogue, the
EU has put in place the Euro-Mediterranean Energy Forum.
Conclusion
16.11 We have drawn this Communication
to the attention of the House as an example of activity which
is taking place to re-invigorate the Barcelona Process. We have
already recommended the Communication referred to in paragraph
16.2 above for debate in European Standing Committee B[35]
and we now recommend that this document be tagged as relevant
to that debate. Meanwhile, we clear
the document.
29 The four other priority areas identified were industrial
policy, water, environment and the information society. Back
30 (21492)
11381/00; see HC 23-xxviii (1999-2000), paragraph 9 (1 November
2000), HC 23-xxix (1999-2000), paragraph 10 (15 November 2000)
and HC 28-vii (2000-01), paragraph 1 (28 February 2001). Back
31 (22096)
5619/01; see HC 28-xi (2000-01), paragraph 2 (4 April 2001). Back
32 Not
yet published. Back
33 Algeria,
Cyprus, Egypt, Israel, Lebanon, Jordan, Malta, Morocco, Syria,
Tunisia, Turkey and the Palestinian Authority. Back
34 Interstate
Oil and Gas Transport to Europe. Back
35 (21492)
11381/00; see HC 28-vii (2000-01), paragraph 1 (28 February 2001). Back
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