No gurus, no magic. Just the best stock from a consensus of experts. Find out more and how to subscribe. The real question here is whether the deregulation process that has been started throughout Europe has sufficient momentum to carry on and deliver the benefits of market forces through the different countries in Europe. For those where deregulation is still embryonic, there is certainly one danger people are starting to talk about deregulation backlash, given what has happened in California.
People question whether the deregulation process is going to deliver what it is supposed to deliver.
What you have seen are parts of Europe, such as the UK, Scandinavia, Germany and Spain to a degree, embracing deregulation and really going for it. You ve had other parts of the European continent, including France, that have been more lukewarm toward the overall deregulation process for energy in Europe. In fairness, the French argument has at least in part been that the deregulation process for European energy has not been properly thought out, so experiences like California can only add to their case. You have tightening capacity margins, i.e., the actual available capacity is not that much greater than the peak demand in the system. The most aggressive player in the Spanish market, in terms of renewing its generation technology, is Union Fenosa.