According to the rapporteur, it was essential for the Union to establish a coherent energy policy. He hoped that a chapter on energy would be included in the Treaty on European Union and would take account of the environmental objectives. It was important to develop research in the area of renewable energy sources and to ensure that this area received the same funding as nuclear fusion. The rapporteur also highlighted the need for a policy on diversification of supply. The EU’s energy policy should strive for gradual liberalisation in accordance with a number of fundamental principles (competition, network access, price transparency, etc.). Finally, the rapporteur called for substantial aid for the CEECs in the field of nuclear security. Commissioner PAPOUTSIS outlined the three challenges facing the Union: the competitiveness of the energy sector, the security of installations and security of supply, and the need to protect the environment. In this respect, the Commissioner highlighted the Commission’s proposals to reduce CO 2 emissions and expressed his disappointment at the delays in their implementation. The Commissioner also emphasised the importance of cooperation with the CEECs and stated that he was in favour of Parliament’s involvement in the definition of the Union’s future energy policy.

The Committee of the Regions called for full compliance with the principle of subsidiarity in the establishment of a European energy policy. This implied not only consultation of the local and regional authorities when applying the policy but also consideration of local employment, environmental and social needs. Decisions on energy production should also recognise and assess their effects on social and regional development. Local and regional authorities should play a key role in the decisions on the establishment of trans-European networks. They also had a crucial role to play in promoting energy efficiency and reducing energy consumption. It was also essential to take account of the urban dimension when drawing up a European energy policy. Cooperation between European regions and cities would have a beneficial impact on planning and the development of a highly effective information system in the energy field. The Committee of the Regions considered that energy policy was a key element of the economic and social development policy and should form part of a policy of sustainable development. It should also be examined from the point of view of consumers and citizens. The public interest could not be left entirely to market forces; it was to counterbalance market forces that the public sector existed.

The ESC noted, first and foremost, that the Commission’s Green Paper had not called into question the relevance of the Own-initiative Opinion it had adopted in September 1994. Overall, the ESC was quite critical of the Commission’s document. It considered that the Commission had not presented any clear considerations as a first step towards a Community energy policy, over and above the policies of individual states and their convergence. The Green Paper could have provided an opportunity to illustrate why it was necessary to have a longer-term strategy for a Community energy policy that was complementary to national energy policies and that pinpointed responsibilities on the basis of subsidiarity. In this context, the ESC regretted that the Commission only made very general comments, which made it impossible to evaluate whether or not the European Union should play a more active role in the energy sector. In any event, the ESC stressed that the energy policy objectives could not be restricted to the three mentioned by the Commission and that it was essential to include in this list the objectives of economic and social cohesion and job creation. The practical implementation of these objectives was crucial for energy policy, as were the economic and regulatory instruments required to implement them. When applying these instruments it was particularly important to define the responsibilities and powers of the Community and the Member States as clearly as possible. As far as the ESC was concerned, the Green Paper was lacking in this respect: the Commission emphasised the need to limit as far as possible intervention by public authorities and saw economic and regulatory instruments playing a central role, without defining responsibilities and powers.

The broad lines of action by the Community on trans-­European energy networks must be: - the identification of projects of common interest; - the creation of a more favourable context for development of these networks. Any energy network project may be considered to be of common interest if it corresponds to the objectives and priorities set and displays potential economic viability taking economic, social and technical factors into account. In this connection, the Council considers that the concept of viability includes not only the financial profitability of the projects but also other considerations such as the reliability and security of energy supplies, the strengthening of economic and social cohesion and protection of the environment in the Community. A committee composed of the representatives of the Member States will assist the Commission in implementing the Decision, in particular with regard to updating the list of projects of common interest. The common position concerning a more favourable context for the realisation of projects of common interest in connection with trans­-European energy networks and for the interoperability of such networks on a Community-­wide scale identifies the action to be taken to achieve those objectives. The text therefore provides that the Community should promote as necessary: - technical cooperation projects between the entity or entities responsible for the trans-­European energy networks involved in the proper functioning of European interconnections; - cooperation between Member States through mutual consultations with a view to facilitating implementation of the authorisation procedures for the realisation of projects on trans­-European energy networks in order to reduce delays. In close collaboration with the Member States concerned, the Commission should take all relevant initiatives for promoting the coordination of the activities in question. As regards the creation of a more favourable financial context for the development of trans-­European energy networks, the common position provides that the Community: - may provide financial support as part of the action on trans-­European energy networks. These measures would be adopted by the Commission in accordance with the provisions of the Council Regulation laying down general rules for the financing of trans­-European networks; - will take account of the projects of common interest in providing assistance from its Funds, instruments and financial programmes applicable to those networks, within the terms of their own rules and purposes. A committee composed of the representatives of the Member States will assist the Commission in implementing the Decision.