Energy Market
The European Union Energy Policy:
An Initiative in Progress
Anna Rulska
April 2006
I. Introduction
In January 2006, Russia cut off supply of gas to Ukraine. The European Union (EU), dependent on gas from Russia, delivered through Ukraine, realized the full extent of its vulnerability in the realm of energy security and a need, more pressing now than ever, for a common energy policy. Shortages of energy carry implications not only for domestic producers and consumers, but also for external security of the EU, for energy becomes a strong bargaining chip for Russia who can easily exert pressure on the EU members—especially those who do not possess their own supplies and whose energy sources are not diversified.
What is the current energy policy of the EU? Can the EU member-states agree on an effective common energy policy? What is an effective energy policy for the EU? Why has the subject of a common energy policy climbed the EU agenda now? Can disparity in national interests and levels of dependency be breached to create a common energy policy? What are the challenges the EU is facing in creating an effective common energy policy? What dangers lay ahead the EU if the members do not agree on common policy? These are but a few questions associated with issues of European energy.
The need for a common EU energy policy is a fact—and the mechanics and provisions of such a policy should be left to specialists on energy security. Instead, this essay asserts that the EU energy policy is really a matter of two intertwined policies: energy policy and security policy. In terms of energy policy, the issues of security of supply and managing demand are vital. In terms of foreign policy, assuring diversity in supply in order to reduce the dependence of Europe on one source of energy—and creating political security through a proper management of energy sources through foreign policy cannot be overlooked. Since the scope of the issues involved in
An Initiative in Progress
Anna Rulska
April 2006
I. Introduction
In January 2006, Russia cut off supply of gas to Ukraine. The European Union (EU), dependent on gas from Russia, delivered through Ukraine, realized the full extent of its vulnerability in the realm of energy security and a need, more pressing now than ever, for a common energy policy. Shortages of energy carry implications not only for domestic producers and consumers, but also for external security of the EU, for energy becomes a strong bargaining chip for Russia who can easily exert pressure on the EU members—especially those who do not possess their own supplies and whose energy sources are not diversified.
What is the current energy policy of the EU? Can the EU member-states agree on an effective common energy policy? What is an effective energy policy for the EU? Why has the subject of a common energy policy climbed the EU agenda now? Can disparity in national interests and levels of dependency be breached to create a common energy policy? What are the challenges the EU is facing in creating an effective common energy policy? What dangers lay ahead the EU if the members do not agree on common policy? These are but a few questions associated with issues of European energy.
The need for a common EU energy policy is a fact—and the mechanics and provisions of such a policy should be left to specialists on energy security. Instead, this essay asserts that the EU energy policy is really a matter of two intertwined policies: energy policy and security policy. In terms of energy policy, the issues of security of supply and managing demand are vital. In terms of foreign policy, assuring diversity in supply in order to reduce the dependence of Europe on one source of energy—and creating political security through a proper management of energy sources through foreign policy cannot be overlooked. Since the scope of the issues involved in
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