Jobs, energy to dominate EU spring summit

Jobs and energy are expected to dominate the agenda of a two-day spring summit of the European Union (EU) now that a possible clash over protectionism appears to have been avoided.

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initiated by Italian Prime Minister Silvio Berlusconi, which was set to spark an exchange of fire at the summit, was withdrawn on the eve of the gathering after other countries declined to sign up, as a result of pressure from Austria, which holds the rotating EU presidency.

Austria promised to discuss the issue later in Vienna.

The EU leaders now have to tackle the long-time woes facing European societies: low growth rates and high unemployment.

There is broad-based consensus among 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 social summit, a dialogue between EU leaders and employment and trade unions, ahead of the EU summit.

Proposals include more investment in education and research and development, more flexibility of the labor market and the support for small- and medium-sized enterprises.

There are disputes over the so-called "social models" of EU member states. Conservatives and liberals insist the model of welfare states is not sustainable and there must be flexibility on the labor market, while left-wing politicians argue that Europe should maintain its social standards and that there should be no "race to the bottom."

Barroso on Thursday admitted that there was resistance to reforms in certain countries. But he added that the existence of resistance meant there was reform in the EU, representing the right direction.

The energy issue is expected to be equally as difficult as growth and jobs. The idea of a common European energy market has already met resistance from the big member states.

A greenpaper of the executive European Commission 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 energy issue became a priority of Brussels following the crisis at the beginning of the year sparked by Russia cutting off its gas supply to Ukraine.

The greenpaper calls for a new long-term pact with Russia on energy supplies and the diversification of supply sources, such as new pipelines from the Caspian region and North Africa.

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

The commission also wants the EU to speak with one voice on energy, partially depriving the authority of national governments on negotiations with external partners.

Source: Xinhua