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Home >> World
UPDATED: 07:41, March 24, 2006
EU leaders open economic summit on economic reforms
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Heads of state and government of the European Union (EU) members states kicked off a two-day spring economic summit Thursday night, the agenda of which is expected to be dominated by growth and jobs and a common energy policy.

The catchword of the spring summit would be "reforms" and several agreements have been proposed, including more investment in education and research and development, more flexibility of the labor market and the support for small- and medium-sized enterprises.

There is broad-based consensus among the member states on growth, said European Commission President Jose Manuel Barroso on Thursday. But concrete action is needed, he told a press conference after a tripartite social summit, a dialogue between EU leaders and employment and trade unions, ahead of the EU summit.

Barroso admitted on Thursday that there is resistance to reforms in certain countries. But he added that the existence of resistance means there is reform in the EU, which represents the right direction.

The leaders are expected to spend a significant amount of time on discussions over an energy greenpaper presented by the executive European Commission.

The document calls for the creation of a new EU-level energy regulator and an integrated European electricity grid.

It also asks for new legislation on oil and gas stocks to ensure Europe has an emergency gas stockpile, and a mechanism to ensure a rapid and coordinated response to supply emergencies.

The commission also wants the EU to speak with one voice on energy, implying that in the future one EU-level official would go to negotiations with external partners on behalf of all the 25 member states.

Divisions are expected among the leaders as the greenpaper, basis for future legislation, would deprive part of the authority of national governments on energy policies.

The energy issue became priority of the EU following the energy crisis at the beginning of the year after Russia cut off its natural gas supply to Ukraine, through which EU countries get much of its gas supply.

A sense of urgency was also prompted by recent rifts among member states over blocked cross-border mergers of energy companies.

Austria, which holds the rotating EU presidency, breathed a sigh of relief after a possible clash at the summit over protectionism was averted.

A letter to denounce protectionism initiated by Italian Prime Minister Silvio Berlusconi, which was set to spark exchange of fire at the summit, was withdrawn on the eve of the gathering after other countries declined to sign up, obviously as a result of pressure from Austria.

Austria promised to discuss the issue later in Vienna.

Source: Xinhua


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