COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 23.04.1997 
COM(97) 167 final 
COMMUNICATION FROM THE COMMISSION 
AN OVERALL VIEW OF 
ENERGY 
POLICY AND ACTIONS 

WliÈ^reoi^i^ 
Introduction 
A. The strategic energy challenges 
B. The need for an overall energy policy response 
C. Objectives and range of the analysis 
L Energy co-operation 
A. Co-operation with Member States 
B. Co-operation with interested parties 
II. Community actions 
A. Security of supply and international energy co-operation 
B. Integrating energy markets 
C. Promoting sustainable development in the field of energy 
D. Promoting energy research and technological development 
Conclusions 
vf *• 
ïNTROptîetïcîi 
Energy is the lifeblood of economic activity and social welfare. It is essential for achieving 
growth, competitiveness and employment. Its production and use have a great impact on 
the environment. 
This central role of energy is however generally only experienced and acknowledged by 
the European citizen in crisis situations (e.g. oil shocks, Chernobyl, Gulf war). 
Nonetheless, the European Union will have to face strategic energy challenges in the years 
to come which will have a direct impact on European citizens and consumers. It is 
necessary, therefore, to respond with a suitable strategy. 
The Community already possesses a wide range of instruments in various policy contexts 
from which energy actions are developed. As a follow-up to the White Paper "An Energy 
Policy for the European Union"l and in response to a request expressly made by the 
Council2, this Communication presents an overall view of energy policy and the 
. instruments available for its implementation. It represents a first step which could open the 
way to a new and more coherent presentation of energy actions. The main components of 
energy policy are listed in the table at Annex 1. The financial instruments available at 
Community level are indicated in the table at Annex 2. 
A. THE STRATEGIC ENERGY CHALLENGES 
Following an intensive debate on the 1995 Green Paper on the future shape of a 
Community energy policy3, the Commission adopted the White Paper "An Energy Policy 
for the European Union"1. The broad policy orientations have been largely endorsed by 
the Council, the European Parliament, the Economic and Social Committee and the 
Committee of the Regions. It will be necessary to adapt energy policy to the strategic 
challenges the European Union will have to face, taking account of the rapid development 
of markets and the international situation. 
The table in Annex I shows that in order to meet the challenges listed below, it is 
necessary to deploy a panoply of actions, which can be undertaken in the context of the 
different programmes. 
1. Managing external dependency to secure energy supply 
The external energy dependency of the European Union currently stands at approximately 
50%. It could well by 2020 increase to as much as 70%, 80% and 90% for natural gas, coal 
and oil respectively4 if appropriate measures are not taken. This growing external energy 
dependency of the Union should be taken account of and analysed in the light of the political 
risks in some supplier or transit countries and growing world energy consumption. Forecasts 
predict a tightening of energy supplies and an upward trend for energy prices. 
White Paper "An Energy Policy for the European Union", COM(95) 682 of 13.12.1995. 
Council Resolution of 08.07.1996 on the White Paper "An Energy Policy for the European 
Union", OJ N° C 224 of 01.08.1996, p.l, and Council Regulation N° ...of 14.04.1997 adopting 
a programme to promote international cooperation in the energy sector - SYNERGY programme 
-(Art. 3). 
Green Paper "For a European Union Energy Policy", COM(94) 659 of 11.01.1995. 
"European Energy to 2020. A Scenario approach", European Commission, Spring 1996. 
M 
A major challenge for energy policy is therefore to ensure security of supply. Diversification 
and flexibility of domestic and imported supplies should be encouraged in particular by 
promoting the development of renewable energy resources and by achieving closer integration 
of the energy markets. 
There is also scope for strengthening security of supply by closer cooperation with third 
countries and by developing a system which can respond quickly and flexibly to sudden energy 
supply breakdowns, in particular as regards oil and gas. The European Union is evolving in a 
world that is becoming more and more interlinked and interdependent. This raises issues such 
as the conditions of access of energy products to the European market and the access of 
European energy companies to third countries' markets. In its external relations the 
Community needs to give even more attention to energy policy if it is to find appropriate 
responses to its large and growing external energy dependency, particularly since many energy 
issues have an international dimension. 
A coordinated approach to external energy relations is thus necessary in order to ensure free 
and open trade and a secure framework for energy investments. Dialogue, assistance and co-
operation with non-member countries are realistic solutions for the simultaneous enhancing of 
energy security, achievement of environmental goals and stimulation of the development of 
appropriate energy technologies and their dissemination to third countries. 
2. Integration of the European energy markets to increase competitiveness 
One of the critical factors for the international competitiveness of European businesses is the 
cost of energy, in particular in the context of the growing globalisation of markets. 
Compared to the USA, European industry pays far more for energy. For instance, it is 
estimated that in the chemicals sector European companies pay up to 45% more than their US 
competitors5. Apart from differences in tax treatment, the lack of competition is a key factor in 
explaining the cost differential. For instance, it is expected that full liberalization of the 
European internal electricity market will provide substantial benefits which would amount to 
10-12 billion ECU per annum, or twice as much as gains anticipated from the opening already 
agreed. The introduction of third party access in gas would also lead to a cost reduction of 900 
million ECU per annum and substantial additional gains could result from gas-to-gas 
competition. 
A key challenge for Energy Policy is therefore to ensure further integration of the Community 
energy market, based on the principle of open and competitive markets. This is crucial for 
European competitiveness. It is also essential for achieving flexibility, efficiency and long-term 
security in the energy sector and for enhancing economic and social cohesion. The increased 
competitivity aimed at by the integration of the energy markets must not develop against the 
legitimate expectations of non-industrial consumers in favour of energy equipment and services 
guaranteeing increased safety, quality, and durability, available at affordable prices. This 
process of integration is not incompatible with public service obligations undertaken on the 
basis of clearly defined criteria, transparently applied in the general interest. 
Fourth Report of the Competitiveness Advisory Group, December 1996. 
3. The compatibility of energy and environmental objectives for sustainable 
development 
Environmental considerations have emerged at the top of the political agenda in response to 
the increasing concern of the European citizen. Energy, which is a key factor in the 
achievement of sustainable development, must be given political priority if all the 
environmental objectives are to be met. For instance, in view of the global issue of climate 
change, the Community's political commitment to limit greenhouse gas emissions cannot 
realistically be achieved without energy policy measures. 
One major challenge for energy policy is thus to render energy and environmental objectives 
more compatible. The more rational use of energy and of non-fossil resources such as 
renewables should make a significant contribution to this goal. Wherever possible, the full cost 
of energy production and consumption, including external costs, should be established in a 
transparent manner and reflected in the price. 
Consumers, and indeed industry, should also play their part in taking up the challenge, by 
realising that their individual choices have direct consequences on the quality of their 
environment. It is thus important for Union and Member States to raise the awareness and 
develop the interest of the European citizen, mainly by means of actions at local level. 
4. Developing energy technology and research 
The development of new, cleaner and more efficient energy technologies and their introduction 
on the energy markets is a strategic challenge insofar as this should allow the priority objectives 
of energy policy to be achieved more easily. 
The objective of actions in this area is to develop new technologies, for new energy sources to 
strengthen security of supply and diversification, for energy saving and for more productive 
access to fossil fuels. Subsequent exploitation of these technologies must serve the priority 
interests of energy policy. 
In order to achieve this, closer links between the different stages of R&TD and the mechanisms 
of the energy market will have to be ensured by, inter alia, improved cooperation between 
Member States and between the main actors in the different phases of this process. 
This also implies that the needs of the consumer and the respect of the environment must be 
integrated at each step of energy technology research, and that the different stages of 
technology development need to be coordinated with measures taken to improve their market 
application. 
4 
B. THE NEED FOR AN OVERALL ENERGY POLICY RESPONSE 
A range of policy measures is available in the field of energy, at regional, national and 
Community level. The reasons for a more overall approach are fivefold: 
1. The need for a clear and specific legal base 
The lack of such a base in the Treaty establishing the European Community compels the 
use of Article 235 or else moving, depending on the measures, from an Article concerning 
"Industry" to another concerning "the Environment" or the "Internal Market". 
The Commission recalls in this connection the position it took in its report to the Council 
of 3 April 19966, in which it stressed that the continuity of coherence of Community 
action in the energy field could be facilitated by the introduction into the Treaty of 
provisions which would make such actions more efficient and more visible. 
2. The need for greater transparency in Community Energy Policy actions 
Community actions in the field of energy are currently developed under a series of 
Community policies (Energy Policy, External Relations, Environment, R&TD, 
Competition, Internal Market, Regional Policy, Agriculture,etc). This sometimes results 
in a lack of transparency in existing actions, both for industry and for political decision­
makers. 
An overall Energy Policy framework would optimise the effectiveness of the actions and 
help to implement a more transparent energy policy. 
3. The need for better targeting 
The scattering of energy actions over a great number of Community policies also points to 
the need for better targeting of these actions to optimise the use of resources. The table at 
Annex 2 shows the volume and the range of the means deployed from the various policies. 
The primary concern should be to identify any policy gaps, encourage synergies and avoid 
duplication between these Community measures so as to ensure their maximum 
effectiveness. An overall energy policy framework would facilitate better targeted actions 
around the priority Community energy objectives. 
4. Tine need for closer eo-ojeration between t'ae Community and Member 
States 
Many energy policy measures are taken by Member States, be it at national, regional or 
local level. If the priority Community energy objectives are to be met, it is essential to 
establish an energy co-operation framework between the Community and the Member 
States. The objective is not to impose choices on national energy policies. On the 
contrary, the aim is to enable Member States to ensure that their energy choices are 
compatible with the priority Community objectives and to help them to achieve this. 
Report from the Commission to the Council on Civil Protection, Tourism and Energy 
(SEC(96)496 final of 3 April 1996). 
This co-operative approach with Member States will also promote exchanges of 
information and experience, help identify issues of Community interest, and facilitate the 
transfer of best practice. 
5. The need for fuller involvement of ail interested parties 
The transparency and the effectiveness of the Community's energy policy could also be 
improved by fuller involvement of all interested parties. More dialogue and partnership 
between these parties and the Community can facilitate the identification of needs, the 
definition of appropriate policy actions and their implementation. 
6 
C. OBJECTIVES AND RANGE OF THE ANALYSIS 
1. Objectives 
The aim is to bring together all Community actions for energy into a coherent and 
comprehensive framework with two objectives: 
• to ensure greater transparency of the Community's energy policy; 
• to examine ways of increasing the effectiveness of the Community's energy policy, in 
particular by helping to identify areas where Community actions need to be simplified, 
better co-ordinated or strengthened. 
2. Range 
The analysis covers all Community actions in the field of energy. Two types of actions are 
identified: 
• actions to promote energy co-operation between Member States; 
• Community actions developed both under the Community's specific Energy Policy and 
under other relevant Community policies (e.g. Structural Funds, R&TD, External 
Relations, Competition, Environmental and Agricultural policies) and other instruments 
(e.g. the European Investment Bank, European Investment Fund, European 
Development Fund). 
All Community measures in the field of energy are classified on the basis of the 
contribution they can make to the four followingpriority objectives: 
• Securing supply and strengthening international energy co-operation; 
• Integration of European energy markets; 
• Promotion of sustainable development; 
• Developing energy technology and research. 
The table at Annex 1 sets out the main components of energy policy. It is followed 
by a table showing the main sources of finance for Community energy actions 
(Annex 2). 
I^^M^BËMB^^^i^^^^^^^KS 
A. CO-OPERATION WITH MEMBER STATES 
Member States and Commumty share common energy objectives. A list of these 
objectives is set out in the recent draft Decision concerning the organisation of co­
operation around agreed Community energy objectives.7 This list of objectives sets out 
policy guidelines - covering, inter alia, security of supply, competitiveness, environmental 
protection, external energy relations and the promotion of energy efficiency and 
renewables - which have been periodically endorsed by Member States.8 
In order to facilitate the achievement of these common energy objectives, it is thus 
essential to strengthen co-operation and co-ordination between Member States within an 
organised framework so as to ensure that national and Commumty energy policies are 
compatible with those objectives As a response to the Council's request, the draft 
Decision concerning the organisation of co-operation around agreed Commumty energy 
objectives sets out a framework for closer co-operation between Member States and the 
Community. 
It also provides that representatives of the Member States will meet regularly, and will 
assist the Commission to assess the extent to which Member States' energy policies and 
Community actions contribute to the agreed energy objectives. These meetings will 
constitute a forum for facilitating the exchange of information, the identification of issues 
of Community concern and the transfer of best practice. 
The draft Decision requires the Commission to take initiatives to facilitate closer co­
operation and co-ordination between Member States. This includes in particular the 
monitoring, evaluation and exchange of information on energy policy matters. On the 
basis of the information obtained from Member States, the Commission would be required 
to present a periodic report on the compatibility of energy policies in the Member States 
and the Community with the agreed common energy objectives. This report will provide 
the basis for an examination of energy developments in the Council and will enable the 
identification of the need for new energy policy measures. 
In order to facilitate this co-operation process, a framework should be defined for energy 
analyses and forecasts, to be shared by Member States and the Community. The European 
Energy Observatory, based on a network of national centres, could play an important 
supportive role in analysing priority issues. This analytical work - covering both energy 
market and policy developments - should target the priority energy objectives. For instance, 
security of supply needs to be kept under permanent review, in particular by regular 
examination of the energy situation and global energy market developments. 
Proposal for a Council Decision Concerning the Organisation of Cooperation Around Agreed 
Community Energy Objectives, OJ N° C 27 of 28.01.1997, p.9. 
Most recently, in the Council Resolution of 08.Q7.1996 on the White Paper "An Energy Policy 
for the European Union", OJ N° C 224 of 01.08.1996, p. 1. 
This action would take account of the similar work carried out for the new energy 
technologies in the framework of the activities of the JOULE-THERMIE Programme and 
of the co-ordination of R&TD policy provided for in the 4th Framework Programme. 
B. CO-OPERATION WITH INTERESTED PARTIES 
In the framework of preparing the Green and White Papers on European Energy Policy, 
the comments of industrial and consumer bodies as well as other organisations on the 
future shape of Community Energy Policy have been very useful. These organisations 
have also emphasised the importance they attach to this dialogue and to transparency, and 
they have expressed their wish that this process should be continued and deepened. The 
Council has endorsed this request by calling upon the Commission to pursue this 
consultation process in a Community energy framework9. 
The main purpose of closer co-operation with interested parties is to provide the basis for 
an open and transparent dialogue whereby the Commission can take into account the 
views of all parties concerned when preparing proposals for energy policy decisions of 
interest to them. 
An Energy Consultative Committee is being set up, under Commission auspices, 
consisting of representatives of the principal economic and social actors in the energy 
sector. 10 The principal tasks of this Committee consist of (a) identifying areas in which 
Community action is needed, (b) delivering opinions on Commission proposals before 
they are officially adopted, and (c) formulating recommendations on how to implement 
energy policy actions. 
9 Council Resolution of ©8.07.1996 on the White Paper "An Energy Policy for the European 
Union", OJ N° C 224 of 01.08.1996, p. 1. 
10 Commission Decision N° 96/642#ïC of 8 November 1996 setting up an Energy Consultative 
Cammittoe, OJ N° L292, 15.11.1#96, p. 34. 
i^^ 
A. SECURITY OF ENERGY SUPPLY AND INTERNATIONAL ENERGY 
COOPERATION 
The external energy dependency of the European Union, of approximately 50% at present, is 
likely to continue increasing and reach 70% in 2020. The growth of external dependency 
requires security of energy supply to be a major priority for Community policy. Measures 
should include : the diversification of energy supply and sources ; action on energy demand ; 
cooperation programmes ; the preparation of the accession of new states ; cooperation with 
international institutions and crisis measures. 
1. Actions on the diversification of energy supply 
The diversification of energy supply requires actions both as regards the variety of 
partners supplying energy to the Union, and as regards the diversity of energy resources 
available. 
• The development of relations with the supplier countries 
The relations of the European Community with its current and potential suppliers require 
the progressive establishment of a suitable legal framework which covers bilateral and 
multilateral agreements, together with the strengthening of infrastructures. 
The Energy Charter has become the main framework for pan-European energy 
cooperation n. The Treaty, which was concluded in December 1994, is the first economic 
agreement covering all the NIS republics, the countries of Central and Eastern Europe, 
the European Community, its fifteen Member States, and some countries of the OECD. 
Its main aim* is to facilitate and develop trade and to protect and promote investments in 
the energy sector. The ratification of the Charter Treaty by all its signatories is of major 
importance for East-West cooperation in the energy sector. 
Energy and nuclear safety appear as priority issues in the agreements concluded with the 
Central and Eastern European countries but also in those concluded with a majority of 
republics of the NIS and other third countries. The emergence of Central Asia and of the 
Caspian Sea Basin as gas and oil producers offers a strong potential for exports to the 
European Union. The bilateral agreements with Asia and Latin America give an important 
role to cooperation in the field of energy and in particular to the search for greater energy 
efficiency. Cooperation with the countries of the Gulf is another major component of the 
security of the energy supply of the European Union. Protocols signed with the Mediterranean 
third countries envisage actions for energy, and energy is an explicit aspect of the reform of the 
economic and social structures within the framework of the Euro-Mediterranean partnership. 
Lastly, the Lomé convention contains, among its other provisions, a section devoted to the 
development of energy production, both fossil and renewable, in the ACP countries. 
11 Council Decisions 94/998/EC and 94/1067/Euratom of 15.12.1994 on the provisional application 
of the Energy Charter Treaty by the European Community. OJ N° L 380 of 31.12.1994, p.l. 
10 
The increase in the infrastructures for transport of energy to the European Union is a decisive 
condition of security of energy supply. Within the framework of actions for the promotion of 
the Trans-European Energy Networks12, the Commission will support the process of 
identification of projects of mutual interest with the third countries concerned, as proposed 
in its new Communication on the external dimension of the Trans-European Energy networks. 
• Diversification of energy resources 
The diversification of energy resources, in particular the use of new and renewable 
sources, should make it possible, by an increase in supply, to increase the energy security 
of the European Union. The same is true with regard to the contribution of nuclear energy 
and energy products of European origin, provided these are economically competitive. 
Energy saving and cogeneration also contribute to reducing external dependency. 
The European Community supports new energy sources and renewables (hydro-electric, 
solar, wind and geothermal) and encourages biofiiels. The ALTENER13 and JOULE-
THERMIE14 Programmes play a leading part in promoting this process. The relatively 
high costs of putting the biomass products to energy use should not obscure the 
advantages of these technologies, not only for Community energy policy but also as 
regards job creation, environment and future developments in agriculture. The Common 
Agricultural Policy supports the production of raw materials for purposes other than 
human or animal consumption; most of this non-food production is for biofiiels. 
The nuclear sector represents more than 30% of the electricity production of the 
European Union, and consequently contributes to lower external energy dependency. Use 
of nuclear energy must take into account the imperatives of non-proliferation, of nuclear 
safety, of health and of waste treatment. Under the EURATOM Treaty, the Community 
institutions have a role in the development of nuclear energy, in particular by the 
publication of the PINC15 (Illustrative Nuclear Programmes which give guidance to 
investors in this field), by the implementation of provisions concerning the supply of 
nuclear materials and safeguard provisions, by the protection of workers and the 
population against risks due to ionising radiation, and by the conclusion with third 
countries of agreements on nuclear trade. In this connection, mention should be made of 
the measures taken to combat illegal traffic in nuclear materials (essentially, those diverted 
from military uses), including their customs and judicial co-operation aspects. 
12 Decision 1254/96/CE of the European Parliament and of the Council of 5 June 1996 laying down 
a series of guidelines for Trans-European Energy networks, OJ N° L 161, 29.06.1996, p. 147. 
13 Council Decision 93/500/EEC of 13 September 1993 concerning the promotion of renewable 
energies in the Community (ALTENER), OJ N° L 235 of 18.09.1993, p. 14. 
Draft Council Decision concerning a multiannual programme for the promotion of renewable 
energy sources in the Community. ALTENER II, COM(97) of 12 03.1997. 
14 The presentation of JOULE-THERMIE in its legal context of the 4th RDT framework 
programme is in Chapter D. 1. 
15 Based on Article 40 of the EURATOM Treaty, the publication of the last PINC took place in 
1996, COM(96) 0339 final of 25.09.1996. 
11 
2. Actions on energy detaaitid 
The decreasing of dependency on imported energy necessitates additional action to reduce 
energy demand. 
Through SAVE16, JOULE-THERMIE and the local energy agencies, the European Union 
aims to promote energy saving and develop a culture of energy-saving behaviour and 
rational energy consumption. 
Techniques offering a high technological output have also fully to be exploited. In this 
connection, the contribution of JOULE and THERMIE to technological development and 
demonstration projects concerning energy efficiency should be highlighted. 
3. International aid and cooperation programmes 
International cooperation is a vital aspect of a coherent energy policy. Energy 
dependency, as well as the planetary character of climatic change, have in fact made any 
geographically limited attempts to grapple with energy questions out of date. 
• Technical assistance programmes 
The most important programmes in this domain (PHARE, TAOS17 and MED A18) allow, 
in particular, the undertaking of technical assistance programmes but also co-financing in 
the energy sector. The development of an effective energy policy is a preliminary, for the 
countries involved, to their economic development. In line with the policy priorities 
towards the regions concerned, every effort is made to strengthen the contribution of their 
programmes towards the setting-up in these countries of effective energy structures, and 
to carry out the necessary reforms. 
In its relations with the developing countries of Latin America and of Asia (DC-ALA), the 
Community has defined a precise framework19 for this cooperation which has resulted, in 
the field of energy, in a cooperation strategy between Europe and Asia on the one hand20 
and, as regards Latin America, in the recent launching of the ALURE Programme, aimed 
at encouraging the optimum use of energy resources in this region. 
16 Council Decision 96/737/EC of 16 December 1996 concerning a pluriannual programme for the 
promotion of energy efficiency in the Community (SAVE II), OJ N° L 335 of 24 12.1996, p.50. 
17 The closure of Chernobyl should be partly financed by a EURATOM loan and TACIS subsidies. 
18 Council Regulation N° 1488/96/EC of 23 July 1996 on financial and technical measures to 
accompany (MED A) the reform of economic and social structures in the framework of the Euro-
Mediterranean partnership, OJ N° LI89, 30.07.1996, p. 1. 
19 Council Regulation N° 443/92/EEC of 25 February 1992 on financial and technical assistance to, 
and economic cooperation with, the developing countries in Asia and Latin America, OJ N° L 
52, 27.02.1992, p. 1. 
Council Regulation N° 213/96/EC of 29 January Î996 on the implementation of the European 
Communities investment partners financial instrument for the countries of Latin America, Asia, 
the Mediterranean region and South Africa. OJ N° L 28, 06.02.1996, p.2. 
20 Communication from Uie Commission on an Europe-Asia Cooperation strategy for energy, 
COM(96)308 final of 18.07.1996. 
12 
Relations with the ACP countries are organised within the framework of the funds 
provided under the Lome agreements, in particular the European Development Fund 
(EDF). Actions in the field of energy could receive new impetus, in particular with regard 
to renewables, so as to tackle problems of water supply and of desertification, to favour 
economic takeoff, to limit external constraints on imports of energy and to improve the 
quality of life of the rural populations of these countries. 
• Taking European priorities into account 
SYNERGY is the tool for international cooperation which is specific to the energy sector 
and which takes full account of the needs of the European energy industry in their external 
aspect. The implementation of the SYNERGY Programme is responding to an obvious 
specific need for international cooperation in the energy sector. This programme covers 
cooperation with third countries for the definition of energy policy and its implementation. 
The programme concerns the countries of Central and Eastern Europe, the republics of 
the NIS and the Mediterranean countries, Asia, Latin America and Africa. A key feature 
of this programme is that it takes account as a priority of the specific needs of European 
energy policy development. 
Among cooperative efforts initiated by SYNERGY, the creation of the Euro-
Mediterranean Forum21, the setting up of the Balkans Task Force, similar actions for the 
Baltic States and the new China-European Community Group represent major activities. 
• External aspect of R&TD and environmental policies 
International cooperation in the energy field is also based on a specific external aspect 
deriving partly from R&TD policy (the INCO Programme and the specific JOULE-
THERMIE Programme) and partly from energy actions carried out in the framework of 
environmental policy. In the framework of the INCO Programme, synergy is ensured with 
the JOULE-THERMEE Programme so as best to exploit partnership and cooperation 
possibilities with third countries as regards energy technology. Joint energy research 
projects are also .undertaken with the developing countries. 
• Links between the different programmes 
Emphasis is placed on seeking complementarities between programmes. The imperative of 
complementarity was particularly evident when redefining the role of SYNERGY. This 
programme, as now defined, will place priority on European energy interests at 
international level, complementing the actions of the energy industry. This approach 
differs from that of PHARE/TACIS and the Lomé Convention, under which actions to be 
financed are defined by the Commission on the basis of requests linked to the needs 
expressed by third countries 
21 Communication from the Commission to the European Parliament and the Council concerning 
the Euro-Mediterranean partnership in the energy sector, COM(96)149 final of 03.04.1996. 
13 
4. Preparing for the accession of new States 
At the European Council of Essen of December 1994, the pre-accession strategy22 was 
adopted which contains policy initiatives to prepare the associated CEECs for their 
accession to the European Community. In this context, a structured political dialogue 
between the European Community and the applicant countries makes it possible to discuss 
questions of mutual interest including energy. This strategy of pre-accession results, in 
the field of energy, in harmonization of energy policies, reform of legislation in line with 
the "acquis communautaire" and restructuring of the energy sectors. 
5. Cooperation with international organizations 
Energy questions are also treated within specialized organizations such as the 
International Energy Agency (DEA) - in particular for crisis measures -, the International 
Atomic Energy Agency (IAEA) - as regards all the applications of nuclear energy and in 
particular the monitoring of nuclear materials use (safeguards) and assistance to CEECs 
and to the NIS - and the Agency of the OECD for nuclear energy. Energy also represents 
an important aspect of the activities of the European Bank for Reconstruction and 
Development (EBRD) and of the World Bank, in particular for the technical and financial 
assistance aspects and for the encouragement of the rational use of energy. 
The Commission attaches a great deal of importance to its collaboration and coordination 
with these international organizations, in view of the increased convergence of energy 
objectives and in view of the complementarity of the means to be employed. 
6. Crisis measures 
In order to alleviate potential difficulties in the supply of energy resources, an obligation 
for Member States to maintain a minimum crude oil and/or petroleum product stock level 
was established in 196823. Complementary crisis measures (levies on stocks, reduction of 
consumption, distribution between Member States) have been taken since 1973 24. In 
connection with the initiatives developed on this point within the I.E.A., the current 
framework of stocks and crisis measures has to be adapted to integrate all the components 
of the internal energy market as it takes shape, together with the development of the 
world market. 
22 White Paper - Preparation of the associated countries of central and Eastern Europe for 
integration into the internal market of the Union. COM(95)163 final of 03.05.1995. 
23 Council Directive 68/414/EEC of 20 December 1968 (OJ N° L308 of 23.12.1968, p. 14) fixed this 
level at a quantity corresponding to 65 days of average consumption; Directive 72/425/EEC of 
19.12.1972 (OJ N° L 291 of 28.12.1972, p. 154) carried this level to 90 days of consumf consumption. 
24 Council Directive 73/23 8/EEC of 24 July 1973 on measures to mitigate the effects of difficulties 
in the supply of crude oil supply and petroleum products , OJ N° L 228, 16.08.1973, p. 1. 
Council Decision 77/706/EEC of 7 November 1977 on the setting of a Community target for a 
reduction in the consumption of primary sources of energy in the event of difficulties in the 
supply of crude oil and petroleum products,. OJ N° L 292 of 16.11.1977, p.9. 
14 
B. INTEGRATING ENERGY MARKETS 
The internal energy market represents an essential priority for energy policy and for the 
European Union in general; it opens up prospects for increases in competitiveness for 
companies and for the reduction of prices to the European citizen. 
1. The achievement of the Internal Energy Market 
The internal energy market requires the adoption of a number of operating rules and 
means for its development. 
The structures of the electricity sector are changing in numerous countries of the world 
and in several countries of the European Union; this involves primarily a process of 
modernization, of liberalization and of the introduction of competition. 
The directive on the internal market in electricity, adopted by the co-decision procedure 
at the end of 1996 25, aims at establishing real competition among the energy producers 
and at giving consumers a choice for their electricity supply. It represents a decisive step 
in the achievement of the internal market. This Directive also recognises the public service 
obligations specific to the electricity sector and is fully in keeping with the Commission's 
Communication on services of general economic interest 26.The discussion of the rules 
concerning the internal market in gas 27are now entering a decisive phase in a favourable 
negotiating climate. 
The directive on the internal market in electricity, which entered into force early in 1997, 
will open up as a mimmum a third of the market in six years, which corresponds to a 
volume of 45 billion ECU turnover. It represents a significant opening-up to competition. 
The full implementation of the internal market and a rigorous application of the 
competition rules will create a level playing field for the development of energy sources. 
State aid to the companies and other organizations in the energy sector has to follow the 
general provisions on state aid except in the case of the coal industry where special 
provisions28 have been adopted, taking into account the decline of the sector and the need 
for environmental protection. 
The networks for transport of energy constitute an essential infrastructure element for the 
internal market. The interconnection of these networks is largely operational at national 
and regional levels. It is being achieved at Trans-European level. There nevertheless still 
exist, at all levels, missing connections and insufficient capacities. Moreover, it has been 
necessary to build new pipelines from the gasfields to meet the increasing demand for 
natural gas. Decisions29 taken in 1996 as regards Trans-European Networks provide the 
25 Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 
concerning common rules for the internal market in electricity, OJ N° L 27 of 30.01.1997, p. 20. 
26 Communication from the Commission on services of general interest in Europe, COM(96)443 
final of 11.09.1996. 
27 Amended proposal for a European Parliament and Council Directive concerning common rules 
for the internal market in natural gas, OJ N° C123, 04.05.1994, p.26. 
28 Commission Decision N° 3632/93/ECSC of 28 December 1993 establishing Community rules for 
State aid to the coal industry, OJ N° L329, 30.12.1993, p. 12. 
29 Council Decision N° 96/391/EC of 28 March 1996 laying down a series of measures aimed at 
creating a more favourable context for the development of Trans-European Networks in the 
energy sector. OJ N° L161, 29.06.1996, p. 154. Decision N° 1254/96/EC of the European 
Parliament and of the Council of 5 June 1996 laying down a series of guidelines for Trans-
European Energy Networks, OJ N° L 161, 29.06.1996, p.147. 
15 
framework, guidelines and means for securing a sound basis for trade and for the 
operation of the internal energy market. 
Taxation of energy products is an important factor in the achievement of the internal 
market. The Directives relating to excise duties on mineral oils 30 together with that 
relating to the free circulation of these products31 have allowed the creation, by a process 
of harmonization, of a true internal market in mineral oils. The Commission sent the 
Council, on 12 March 1997, a draft Directive aimed at completing the first of these 
provisions and at thus strengthening the internal market in energy products 32. This 
proposal widens the application of the Community system of minimum rates to cover all 
energy products. It will allow the ending of distorsions of competition which today affect 
the energy markets, while promoting the principle of fiscal neutrality. This proposal also 
takes account of the need to encourage, by fiscal incentives, the development of 
renewable energies, and the internalization of environmental costs. 
Transparency is a very important condition for the smooth operation of the internal 
energy market and is likely to create a climate favourable to investment. This transparency 
should extend to the energy policies pursued, to the rules applied, to the quantities33 and 
prices of energy products, and to investments. It was significant, for example, that the 
transparency of prices to the industrial final gas and electricity consumer was achieved in 
this context.34 
Standardization contributes to the integration of the energy sector. Standardization work 
covers the energy products themselves, their production, their transport, their distribution 
and also appliances or equipment which are energy-consuming. It is in particular with the 
support of SAVE and ALTENER that standardization directives are drawn up in the fields 
of energy efficiency and the labelling of energy-consuming appliances35. 
30 Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the structures of 
excise duties on mineral oils, OJ N° L 316 of 31.10.1992, p. 12. Council Directive 92/82/EEC of 
19 October 1992 on the approximation of the rates of excise duties on mineral oils, OJ No L 316 
of 31.10.1992, p. 19, modified by Council Directive 94/74/EC of 22 December 1994, OJ No L 
365 of 31.12.1994, p. 46. 
31 Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products 
subject to excise duty and on the holding, movement and monitoring of such products, OJ N° L 
76 of 23.03.1992, p.l. 
Draft Directive restructuring the Community framework for the taxation of energy products, 
COM (97) 30. 
Council Regulation 95/2964/CE of 20 December 1995 introducing registration for crude oil 
imports and deliveries in the Community, OJ N° L 310, 22.12.1995, p.5. 
Council Directive 90/377/EEC of 29 June 1990 concerning a Community procedure to improve 
the transparency of gas and electricity prices charged to industrial end-users, OJ N° L 185, 
17.07.1990, p. 16. 
35 Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water 
boilers fired with liquid or gaseous fuels, OJ N° L 167 of 22.06.1992, p. 17. Directive 96/57/EC 
of the European Parliament and of the Council of 3 September 1996 on energy efficiency 
requirements for household electric refrigerators, freezers and combinations thereof, OJ N° L 
236, 18.09.1996, p. 36. 32 
33 
34 
16 
2. Energy and economic and social cohesion 
Energy policy is also concerned with Community action in the field of economic and 
social cohesion36. The possibility of having sufficient energy available at affordable prices 
is an important condition for the competitiveness of underdeveloped regions. A good 
energy balance, rational energy use and emphasis on the development of renewable 
energies are also important considerations for European regional planning The energy 
programmes include this aim of cohesion; it is thus for example that a third of the actions 
under THERMIE and nearly half of the local and regional energy centres are located in 
the regions of Objective 1 (support to the less developed regions) and more than 20 % in 
the regions of Objective 2 (regions in industrial decline) and 5b (rural areas). 
As regards the Structural Funds, the Community Support Frameworks almost all envisage 
an "energy component". In the Objective 1 budget, the amount for projects concerning 
energy represents 2.5 billion ECU. Some of the Community initiative programmes 
concern energy directly, in particular INTERREG II/REGEN (cross-border cooperation 
and energy networks) and REGIS II (integration of the more remote regions). 
The Cohesion Fund, for its part, finances environmental projects and projects for transport 
infrastructure which are indirectly connected with energy. 
3. The financing of energy investments 
In addition to the financing provided by the Structural Funds or within the framework of 
the Trans-European Networks, the energy sector enjoys the financial support of the EDB, 
the EIF and ECSC and EURATOM aid and loans. The table entitled "main sources of 
finance for Community energy actions"(see Annex 2) provides an overview of all the 
financing granted to the energy actions. 
Loans from the European Investment Bank (EIB) to the energy sector account for 
approximately 20% of the financing granted by the EIB. The objectives of the energy 
policy of the European Community constitute eligibility criteria for the EIB. The 
achievement of the internal market also results in emphasis on the interconnection of the 
gas and electricity networks both within the European Union and outside it. 
The Edinburgh mechanism was introduced by the European Council at the end of 1992 to 
support, inter alia, the financing of investments in Trans-European Energy Networks, 
equipment in the energy production sector and other investments making it possible to 
improve the access of the regions concerned to the Trans-European Energy Networks 
(the amounts granted are included in the data given in Annex 2 concerning EIB loans). 
The European Investment Fund (EIF) centres its interventions on the granting of financial 
guarantees to the banks in support of medium and long term investments of interest to the 
Trans-European Networks. 
36 Communication from the Commission to the Council, the European Parliament and the 
Economic and Social Committee on Energy and economic and social cohesion, COM(93)645 
final of 14.02.1994. 
17 
The ECSC finances actions concerning in particular the retraining of workers and research 
programmes in the coal and steel sectors; it grants interest rebates on industrial 
readjustment loans. Moreover, the ECSC makes loans, mainly to the coal industry, to 
thermal power stations and to Community steel. 
C. PROMOTING SUSTAINABLE DEVELOPMENT IN THE ENERGY FIELD 
"Sustainable" economic and social progress can be achieved only if all policies and, first 
and foremost, energy policy, fully integrate environmental concerns. 
1. The compatibility of energy and environmental objectives 
The energy sector plays a major role as regards the environment. Indeed, the production, 
transport and use of energy have incidences, in most cases, on our environment; these 
incidences may be local, when they concern air quality in towns, discharge, nuclear 
storage or noise; they may cover several regions or states and thus have continental 
dimensions, in the case of emissions which have consequences beyond their place of 
origin. Emissions of greenhouse gases such as CO2 constitute a world-wide concern, 
which was the subject of the United Nations Framework Convention on Climate Change. 
All actions aimed at reducing emissions and developing safer energy techniques bring with 
them benefits to health. Since 1991, the reduction of CO2 emissions has been raised by the 
Council to the rank of strategic concern37 and will represent the major topic for discussion 
at the Kyoto Summit in December 1997. On 3 March 1997, Council conclusions indicated 
the objective of reducing by 15% emissions of the main greenhouse gases before the year 
2010. Against this background, the Commission is preparing a Communication on the 
energy dimension of climate change. 
Taxation, voluntary'agreements and R&TD are some of the means available, in addition to 
legislation, for making energy and environmental objectives compatible. This dimension 
has been taken into account by the Commission in its draft Directive restructuring the 
Community taxation framework for energy products38, which aims at completing the 
internal market while allowing Member States to implement environmental policies 
adapted to their national contexts. Furthermore, the Commission is negotiating with the 
car industry with the aim of reaching an agreement on significant reductions in the average 
CO2 emissions from new cars. In addition, specific programmes can enable the 
Commission and the energy industry to work together. For example, the Auto-Oil 
programme involved the petroleum and automobile sectors in seeking the best way of 
economically attaining air quality objectives, working simultaneously on the aspects 
relating to fuels and to engines39. 
37 At its meeting on 29 October 1990, the Council regarded it as a goal to stabilize total CO 2 
emissions between now and the year 2000 at the 1990 level throughout the Community. Also see 
the amended proposal for a Council Directive introducing a tax on carbon dioxide emissions and 
energy, COM(95)172 final of 10.05.1995. 
38 Draft Directive restructuring the Community framework for the taxation of energy products 
(COM (97) 30). 
39 The Communication from the Commission to the European Parliament and the Council on a 
future strategy for the control of atmospheric emissions from road transport takes into account 
the results from the Auto/Oil Programme, COM(96)248 final of 18.06.1996. 
IK 
2. The rational and efficient use of energy resources 
The achievement of the Community's environmental objectives and the reduction of 
energy dependency necessitate rational and efficient use of energy resources. The SAVE 
Programme provides an overall framework for the European Community for stimulating 
measures on energy efficiency, for encouraging investment by industry and consumers in 
energy conservation, and for creating the conditions for the improvement of the energy-
intensiveness of final consumption. Complementing this, the JOULE-THERMDE 
Programmes provide financial support for the development of clean and efficient 
technologies in this field. 
Energy saving at the local and urban levels is increased by the improvement of demand 
management, by the promotion of energy efficiency and by better use of regional 
resources. Following pilot projects for the regions, for the cities and for the islands, the 
Commission has concentrated its action on the local or regional agencies for energy 
saving, the creation of which is supported by SAVE. The value added by setting good 
examples and by successful cooperation in this field across national boundaries are 
especially noteworthy. The potential number of local or regional agencies which could 
usefully operate is estimated at 1600 in the European Union. 
3. The promotion of new and renewable energy sources 
Renewable energy sources are clean, contribute relatively little to climate change, and are 
indigenous and generally easily available. Increasing their share in the Community energy 
balance would contribute to environmental protection and to security of supply, as well as 
having other advantages. These energy sources will be more intensely developed in the 
future, given the progress being made in the technology and the costs. The Commission 
has just submitted a Green Paper on renewable energy sources, which will be the subject 
of a wide-ranging debate associating all the interested parties40. A White Paper, 
accompanied by an action plan, will be adopted before the end of 1997. 
The ALTENER Programme is a particularly important tool for promoting renewable 
energies. By encouraging market penetration, it aims at increasing the share of renewable 
energies in total energy supply as well as at increasing the use of biofiiels by motor 
vehicles. The support of the technological development of renewables is provided by 
JOULE-THERMIE but also by FAIR 41. 
4. Links between the different programmes 
The various energy programmes have different purposes. In drawing up programmes 
which have been recently adopted (SAVE II) or are in the process of being adopted 
(ALTENER II), the Commission has made sure that overlappings are avoided. A number 
of steps have also been, or will be taken to avoid duplications at the operational level. An 
example is the cross-participation by the managers of the different programmes - at the 
level of the preparation of measures, as well as in the evaluation and selection committees 
- which allows potential duplications in practice to be detected. These are first steps which 
40 Communication from the Commission on "Energy for the future : renewable energy sources : 
Green Paper for a Community strategy", COM (96)576 of 20.11.1996. 
41 Council Decision 94/805/EC of 23 November 1994 adopting a specific programme of research, 
technological development and demonstration in the field of agriculture and fisheries, including 
agro-industry, food technologies, forestry, aquaculture and rural development (1994 to 1998). 
19 
may need to be further extended. The tables annexed to this Communication provide a 
tool for further analysis as to potential overlaps, and will enable the necessary steps to be 
taken. 
J>. PROMOTING RESEARCH AND TECHNOLOGICAL DEVELOPMENT 
Research and technological development, including demonstration projects, play an 
essential role in the development of methods which yield high energy efficiency and of 
new technologies for the exploitation of fossil fuels, nuclear energy or renewable energy 
sources. The R&TD Framework programme has a Research and Development component 
(JOULE) and a Demonstration component (THERMIE). These allow substantial efforts 
to be undertaken on new energy technologies by industry, research centres and 
Universities in the Member States. An R&TD programme in the area of nuclear safety and 
controlled nuclear fusion based on the EURATOM Treaty is also undertaken. The Joint 
Research Centre is associated with these efforts. 
1. Non-nuclear energy 
In addition to the general objectives of technological development, the JOULE-
THERMIE42 Programmes have as a focus objectives of energy security (in the large 
sense, i.e. including the concept of economic competitivity and sustainable growth), 
environmental protection (in particular Climate Change), and coherence between R&TD 
and the energy markets. 
The programme has three priorities: the rational use of energy, the development and use 
of renewable energies and the improved use of fossil fiiels. It is completed by a component 
supporting R&TD strategy which also covers research into modelling. 
As regards the improvement of energy use and the conversion of fossil fuels, the aim is 
primarily to reduce polluting emissions and to increase energy efficiency with a positive 
impact on the competitiveness of enterprises. In addition, the Community finances 
research activities in the solid fuels field (coal, lignite and peat). The Commission will 
present a Communication on the role of solid fuels in energy policy, taking account of the 
technological aspects and of the clean and efficient use of these fuels, and looking beyond 
the ECSC Treaty, taking also into account future enlargement. 
With regard to renewable energies, the actions financed cover various energy forms 
(conversion of biomass, photovoltaic electricity, integration of solar energy in buildings, 
new generations of wind-turbines, etc.) and also deal with the impact on the social, 
economic and environmental fabric of the new kinds of energy. 
Efforts are undertaken to co-ordinate the national and Community R&TD programmes. 
This coordination is reinforced by joint analyses of the cost and potential of new 
technologies. 
42 Council Decision 94/806/EC of 23 November 1994 adopting a specific programme for research 
and technological development, including demonstration, in the field of non-nuclear energy 
(1994 to 1998), OJ N° L334, 22.12.1994, p.87. 
20 
It is important to continue these activities and also to add new innovative projects, in 
particular that relating to the "city of the future" for which research and demonstration 
activities centred in particular on energy efficiency in buildings are envisaged. 
Other specific programmes of the 4th R&TD Framework Programme indirectly contribute 
to the improvement of the efficiency of the energy system: information technology 
(ESPRIT), industrial technologies (IMT), technologies of transport (IMT and "Car of 
Tomorrow"). Activities linked to the production of biomass (FAIR) complement 
horizontally the energy-specific activities of JOULE-THERMIE. 
The proposal for the 5th Framework Programme covering the period 1998-2002 has been 
adopted by the Commission. One of its key actions, "advanced energy systems and services", is 
intended to have as an objective a contribution towards satisfying the Community's energy 
needs, while reducing CO2 emissions and strengthening competitivity by promoting, through 
targeted projects, the development of efficient energy systems both as regards production and 
consumption. 
2. Nuclear energy 
In the context of the Fourth R&TD Framework Programme, research and technological 
development activities as regards nuclear fission are undertaken on reactor safety, the 
safety and security of the whole combustion cycle (including waste-management), the 
dismantling of nuclear facilities, the monitoring of nuclear materials, non-proliferation, and 
the radiological effect on human health and the environment. The study of the effects of 
ionizing radiation also results in developments in medical applications. 
The second aspect of research in the field of nuclear energy concerns controlled 
thermonuclear fusion, which constitutes an option that merits serious consideration, as it 
has practically inexhaustible potential as an energy source.43 
43 Following JET (Joint European Torus), the experimental ITER (International Thermonuclear 
Experimental Reactor) reactor has entered its detailed project phase; its objective is to show the 
scientific and technological feasibility of fusion energy for peaceful uses. 
21 
CONCLUSIONS 
1. This Communication aims to improve the transparency of Community energy policy. 
It presents, for the first time, a complete picture, giving an overall view of the actions 
of the European Community in the energy field, including both cooperation with 
Member States and the Community's own actions. 
It represents a first step towards a complete analysis of the different components of 
energy policy. With regard to the links between the specific energy policy actions and 
other Community policies, further analysis will have to be undertaken, based on the 
specific nature of each programme, methods of implementation and the level at which 
Member States, their regions or third countries are involved. These factors are essential 
to a correct understanding of the Structural Funds or of programmes such as PHARE/ 
TACIS/MEDA. 
2. Apart from increased transparency, this Communication allows two operational 
conclusions to be drawn as regards the policy which could be followed in future: 
• Energy actions should be strengthened so as better to respond to the expected 
significant increase in external dependency, to the objective of competitiveness, 
and to the need to respect the environment. The aim will be to encourage 
greater cooperation between Member States around common energy 
objectives. There will also be a need to improve the targeting of Community 
actions - whether developed in the framework of Energy Policy or that of other 
Community policies - on the basis of these priority objectives. The measures 
undertaken should aim to increase the efficiency of Community action and to 
optimise the use of financial resources by the encouraging of synergies and the 
identification of the areas in which energy policy actions should be 
strengthened; 
• With a view to increased efficiency, and without prejudice to the question of 
inserting a specific legal base for energy in the new Treaty, efforts should be 
made at clarification and streamlining. Community Energy Policy needs a 
coherent framework to allow it to fulfil its priority purposes with adequate 
means. 
In fact, the major challenges of security of supply, competitiveness which respects the 
rights and legitimate expectations of consumers, and of sustainable development represent 
major issues for the citizens of Europe, both as regards the way they live and their 
standard of living. It is therefore a matter of urgency to prepare to meet them by facing up 
to the changes taking place both within and outside the Union. 
ANNEX 1 
AN OVERALL VTEW OF ENERGY POLICY AND INSTRUMENTS 
t EJSKKGV COOPERATION 
Objectives and Actions Implementation/ Financing 
cooperation with Member States 
cooperation with interested parties • cooperation framework 
• consultative committee 
m 
Objectives and Actions Implementation/Financing 
i. Security of supply and international energy cooperation 
diversification of energy supply 
- relations with supplier countries 
- energy sources 
actions on demand side management 
aid and cooperation programmes 
- technical assistance programmes 
- taking account of European priorities 
in international energy cooperation 
preparing the accession of new States 
cooperation with international institutions 
crisis measures European Energy Charter 
bilateral agreements 
renewables, biofiiels, nuclear 
SAVE/THERMIE 
PHARE, TACIS, MEDA 
Asia, Latin America (ALURE), EDF 
SYNERGY, including Euromediterranean Forum 
+ Balkans Task Force, China-ETJ Group 
energy policy convergence 
international development of networks 
IEA, IAEA, EBRD, WB 
adaptation of existing framework 
2. Integrating energy markets 
creating the internal energy market 
contributing to social and economic cohesion 
financing energy investments internal markets for gas and electricity 
Trans-European Energy Networks 
competition policy 
energy taxation 
transparency of the energy market 
standardisation 
Structura! Funds / Cohesion Fund 
EÏB/EIF, ECSC 
3. Promoting sustainable development in the energy field 
encouraging rational and efficient use of energy • 
resources 
promoting new and renewable energy sources 
compatibility between energy and environment • 
objectives SAVE, including regional and local agencies 
Renewables strategy, ALTENER 
climate change / auto-oil proposals / 
cooperation with industry for C02 reduction 
4. Promoting energy research and technological development 
promoting energy research and the 
demonstration, dissemination of energy technology 
nuclear research JOULEmffiRMIE/INCO 
EURATOM 
<£? 
ANNEX 2 
MAIN SOURCES OF FINANCE FOR COMMUNITY ENERGY ACTIONS 
v j^gr^^oracf&H* Frwl 
,*'« 
A. Financing of energy policy actions 
1. THERMIE (management / implementation) 
2. SAVEÏÏ 
3. ALTENER 
4. SYNERGY 
5. Observatory 1995 -1998 
1996 - 2000 
1993-1997 
1997 
1997 (pt. C.2 below) 
45 
40 
7 
2 (a)(b) 
(a)(c) 
(e) 
B. Financing of Trans-European Energy Networks 1995 -1999 112 JH. 
C Energy R&TD 
1. JOULE 
2. THERMIE 
3. Safety of nuclear fission 
4. Thermo-nuclear fusion 
5. Joint Research Centre 
6. INCO (External R&TD) 1995 -1998 
1995 - 1998 
1995 - 1998 
1995 -1998 
1995 - 1998 
1995 - 1998 464 
566 
170.5 
846 
312.5 
30 (a) 
(a) 
(a) 
(a) 
(a) 
(a) 
D. Structural Funds 
1. Community Support Frameworks 
2. Community initiatives (REGEN, REGIS) 1994 -1999 
1994 - 1999 2500 
534 (f) 
SSL 
K Financing of international cooperation 
1. PHARE (Central and Eastern Europe) 
2. TACIS (NIS and Mongolia) 
3. MED A (Mediterranean) 
4. Developing countries in Asia 
5. Developing countries in Latin-America 
(including ALURE) 
6. European Development Fund (ACP) 
7. SYNERGY 
8. External aspect of environmental policy 1994 - 1996 
1994 -1996 
1995 - 1999 
1994 - 1996 
1994 - 1996 
1995 -1996 
1997 
1995 - 1996 158.7 
415.4 
p.m. 
20 
28.5 
18.2 
(pt. A.4 above) 
4.6 (d) 
(d) 
(g) 
(d) 
(d) 
(d) 
SSL 
F EURATOM safeguards 1997 15.8 
G. ECSC support for coal 
1. Support for readjustment 
2. Support for research 
3. Coal social measures 1994 - 1996 
1994- 1996 
1994- 1996 164.7 
69.6 
103.2 (d) 
(d) 
SSL 
H. European Investment Bank Loans 
1. European Union 
2. Third Countries 1996 
1996 4.975 
702.4 
/ ECSC Loans 1996 97.3 
J. EURATOM Loans Î996 p.m. 
K. European Investment Fund Guarantees 
1. European Union 
2. Third Countries 1996 
1996 88 
182 
(a) Reference amount provided for in the multiannuai programme concerned. 
(b) In 1997, the Council will re-examine the financial reference amount for 1998-2000, on trie basis of a Commission proposal. 
(c) The Commission has adopted a draft programme for ALTENER II (1998-2002) with a budget of 30 MECU for 1998-1999. 
(d) Amounts committed for annual actions over the whole of the period. 
(e) Council's agreement has been obtained giving SYNERGY a legal base for 1997 and a budget of 6.9 MECU. From 
1993 to 1996, a cumulative amount of 38.8 MECU was committed for this type of action. 
(f) Amount resulting from energy sector actions provided for in the Objective 1 regions. 
(g) No sectoral breakdown; no commitment to date. 
(h) Indicative envelope agreed for the energy TENs within the overall reference amount of 2,345 MECU provided for the TENs as 
a whole (transport, energy, telecommunications). 
t\ 

ISSN 0254-1475 
COM(97) 167 final 
DOCUMENTS 
EN 12 
Catalogue number : CB-CO-97-171-EN-C 
ISBN 92-78-18981-2 
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