Communication from the Commission to the Council and the European Parliament enhancing euro-mediterranean cooperation on transport and energy
Date: 2001-03-07
Institutions: European Commission
Subjects: EU policy, Mediterranean third countries, cooperation policy, data collection, energy policy, exchange of information, transport policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 07.03.2001
COM(2001) 126 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

ENHANCING EURO-MEDITERRANEAN COOPERATION ON TRANSPORT AND
ENERGY

TABLE OF CONTENTS

1.

1.1

1.2

2.

2.1

2.2

2.3

INTRODUCTION.................................................................................................... 3

Objectives of the Communication............................................................................. 3

Euro-Mediterranean cooperation on transport and energy: the stakes ........................ 3

THE TRANSPORT DIMENSION: INJECTING NEW MOMENTUM.................... 5

The political mandate given at Barcelona.................................................................. 5

Five years of Euro-Mediterranean cooperation in the transport sector ....................... 5

Areas in which specific measures could be taken ...................................................... 7

2.3.1

Support to the reform of the transport sector in the Mediterranean Partners .............. 7

2.3.2

Definition and promotion of a multimodal trans-Mediterranean transport network.... 7

2.3.3

Sea and air transport ................................................................................................. 8

2.3.4

Global navigation satellite system (Galileo).............................................................. 9

3.

3.1

3.2

3.3

4.

4.1

4.2

THE ENERGY DIMENSION: BOOSTING THE EXISTING MOMENTUM ....... 10

Energy in the framework of the Euro-Mediterranean partnership - The political
mandate given at Barcelona .................................................................................... 10

Five years of Euro-Mediterranean cooperation in the energy sector ........................ 11

Definition of priorities: Follow-up to the Granada Forum ....................................... 11

CONCLUSIONS AND RECOMMENDATIONS................................................... 13

Transport sector...................................................................................................... 13

Energy sector ......................................................................................................... 14

Annex 1 : Area and population of the EU and Mediterranean Partners ................................. 15

Annex 2 : Transport in the Mediterranean region.................................................................. 15

Annex 3: Development of the energy situation in the region (12 Mediterranean Partners)

1985-1998. ............................................................................................................. 17

2

1.

1.1

INTRODUCTION

Objectives of the Communication

The specific objective of this Communication is to define the broad lines of
Euro-Mediterranean cooperation in the field of transport and energy for the period
2000-20061. At their conference in Malta in April 1997, the Euro-Mediterranean
Ministers for foreign affairs identified transport and energy as two of the six priority
sectors for regional cooperation under the heading of the economic and financial
partnership2. This Communication is designed, firstly, to inject new momentum into
the Euro-Mediterranean partnership in the transport sector and, secondly, to boost the
existing momentum of the partnership in the energy sector.

it

level,

follows on from the Communication entitled
On a more general
adopted by the Commission on
"Reinvigorating the Barcelona Process",
6 September 20003,
the broad lines of which were approved by the Fourth
Conference of Euro-Mediterranean Foreign Ministers in Marseilles on 15 and
16 November 2000. The Nice European Council in December 2000 confirmed the
to developing the partnership in all areas, while the
Union's commitment
Commission for its part decided to make the Mediterranean one of its priority
objectives for 2002. In this context, the Communication aims to take stock of five
years of Euro-Mediterranean cooperation on transport and energy, and to propose
ways of enhancing this cooperation on the basis of experience gained, the evolution
of the two sectors and the recommendations contained in the above Communication4.

Finally, the Communication should be seen in the context of the overall review the
Commission is currently carrying out in the framework of the Green Paper on the
security of energy supply in the European Union5 and the draft White Paper on a
common transport policy.

1.2

Euro-Mediterranean cooperation on transport and energy: the stakes

The prognoses for population growth in the 12 Mediterranean Partners (+50% by
2025 – cf. Annex 1) and for development in trade as a result both of the vigorous
growth in world commerce and the creation of the Euro-Mediterranean free trade
area indicate that there will be a veritable explosion in mobility and demand for

1

2

3

4

5

promotion of South-South and sub-regional cooperation (by sub-region: Maghreb, Mashraq; or

2000-2006 is the reference period covered by the MEDA Regional Strategy Paper, an internal
Commission working paper.
The four other priority areas identified are industrial policy, water, environment and the information
society.
COM (2000) 497 final
The recommendations relating to transport and energy concern in particular:
-
any other sub-group of Mediterranean partners);
-
the new approach recommended for infrastructure financing (joint funding MEDA (grants) /
loans from international financial institutions (notably EIB and World Bank) / national governments /
private sector);
the need for greater complementarity between regional and bilateral cooperation in the
-
framework of MEDA, notably by transferring the results of regional programmes to the MEDA bilateral
programmes.
“Towards a European strategy for the security of energy supply”, COM(2000) 769

3

transport in the Mediterranean Partners in the coming decade and also in energy
consumption. This will generate considerable pressure on transport and energy
systems, which will go hand-in-hand with increased safety and environmental
protection requirements.

According to the second report by FEMISE6 entitled "The Euro-Mediterranean
partnership in the year 2000", the next 20 years will be decisive for the greater
Euro-Mediterranean region and its progress towards the objective of becoming an
area of shared prosperity, as written into the Barcelona Declaration. The conditions
for higher growth (of the order of 6 to 7% per annum) creating more jobs in the
Mediterranean Partners primarily involve speeding up the pace of the reforms
undertaken - notably of the institutional, legislative and regulatory framework -
redefining the role of the State (disengagement) and correcting structural imbalances
inherited from the past. Consequently, there is a need for both reform and structural
measures in the area of transport and energy systems and networks.

With regard to transport networks, FEMISE considers that "transversal transport or
transport by sea is either non-existent or extremely costly at the present moment.
This is a crucial aspect for the development of South-South trade". The low volume
of intra-regional South-South trade (between 4 and 6% of the Mediterranean
Partners' trade since 1970) is largely conditioned by the inadequacy and cost of
transport systems and related services.

Furthermore, the relatively low share of the Mediterranean in flows of foreign direct
investment (FDI) towards the emerging countries7 and in total direct investment by
the EU is also explained by inadequate infrastructures, which have a negative impact
on decisions to invest in the area.

With regard to transport, more than 80% of goods traded between the EU and the
Mediterranean Partners are transported by sea, as is 95% of the Mediterranean
countries' external trade (cf. Annex 2). Air transport is particularly important to the
Mediterranean countries in which tourism is a major sector of the economy. Land
transport links are scarcely used because of political instability in the region, the fact
that certain borders are closed and the low volume of South-South trade. Finally,
there are considerable disparities between Mediterranean Partners with regard to
infrastructure (cf. Annex 2). For example, the density of the road transport network
varies by a factor of 1 to 150 between countries (from 42 km/1000 km2 to more than
6000 km/1000 km2).

It is estimated that some 200 billion euros in investment will be needed in the energy
sector in the next ten years on the basis of the economic growth in the countries on
the Mediterranean8. Annex 3 to this
the southern and eastern fringes of

6

7

8

FEMISE is the Euro-Mediterranean Forum of Economic Institutes, financed through the MEDA
programme. FEMISE produces regular reports containing analyses and proposals for the economic and
financial dimension of the Euro-Mediterranean partnership. The second FEMISE report was published
in July 2000.
According to FEMISE, about 7 billion dollars in FDI would be needed (i.e. a doubling) in order for the
region to be included among the average for emerging countries.
A survey by the Mediterranean Energy Observatory of its members in 1999 put the figure at 190 billion
dollars.

4

communication reviews developments in the region (12 Mediterranean Partners) over
the period 1985-1998.

2.

2.1

THE TRANSPORT DIMENSION: INJECTING NEW MOMENTUM

The political mandate given at Barcelona

Transport is a major priority under the economic and financial dimension of the
Euro-Mediterranean partnership, as is clearly stated in the Barcelona Declaration and
the accompanying work programme.

the terms of

the Barcelona Declaration,

the participants: “stress the
Under
importance of developing and improving infrastructures,
including through the
establishment of an efficient transport system ...” and “undertake to respect the
principles of international maritime law, in particular freedom to provide services in
international transport and free access to international cargoes.”

The work programme in the annex to the Declaration provides for cooperation in the
transport sector focusing on:

•

•

•

"development of an efficient trans-Mediterranean multimodal combined
sea and air transport system, through the improvement and modernisation
of ports and airports, the suppression of unwarranted restrictions, the
simplification of procedures, the improvement of maritime and air safety,
the harmonisation of environmental standards at a high level including
more efficient monitoring of maritime pollution, and the development of
harmonised traffic management systems;

development of east-west land links on the southern and eastern shores of
the Mediterranean; and

connection of Mediterranean transport networks to the trans-European
network in order to ensure their interoperability.”

Thus the key points of the Barcelona mandate for the transport sector are:
infrastructures; organisation of
transport operations and freedom to provide
international transport services; safety and environmental protection.

2.2

Five years of Euro-Mediterranean cooperation in the transport sector

The actions taken at the regional level and the results obtained to date fall far short of
the Barcelona mandate, even though a framework for fresh momentum has been put
in place with the Euro-Mediterranean Transport Forum.

Sea transport

Following a meeting of the Euro-Mediterranean Partners in Cyprus in October 1996,
a package of regional projects on sea transport was submitted in June 1997 to the
MED Management Committee, which approved funding by MEDA (8.4 million
euros). These projects - some ten in all - concern mainly technical and safety aspects,
in particular port information systems, hydrographical studies, research and training,
statistics, port management, dangerous goods and waste collection, maritime

5

administration and flag state policy. While some projects have already been
completed or are being implemented, the launch of some other scheduled activities
(projects relating to maritime safety, strengthening of maritime administrations and
flag state policy) has been delayed for administrative reasons that will be resolved
shortly. Overall, the mid-term balance of these actions is modest, given their size
(microprojects) and scope (ad hoc measures lacking overall coherence).

Statistics

MEDSTAT (regional cooperation project between Euro-Mediterranean statistical
institutes, coordinated by Eurostat and financed by MEDA to the tune of 20 million
euros over the period 1996-2000) has launched a sub-project, “Med-Trans”, designed
to establish cooperation on transport statistics in the Mediterranean area in order to
meet
the demand for information on this subject. Three years down the line,
Med-Trans has created a network of Euro-Mediterranean statisticians who have
learned to work together with the various institutions involved in the statistics
production process (statistical offices, ministries of transport, port and airport
administrations, etc). This has led, following work to harmonise data,
to the
establishment of an initial database of transport statistics in the Mediterranean9.

Creation of the Euro-Mediterranean Transport Forum

The Euro-Mediterranean Transport Forum10, which was set up at the end of 1998, is
the reference forum for developing regional cooperation in the transport sector. Its
mandate is to draw up an action plan for transport in the Mediterranean area -
covering proposals for measures, the resources to carry them out and a timetable - to
monitor its implementation, promote exchanges of information and experience and to
ensure that the results of the action taken are disseminated. This Forum, which meets
annually, has had two technical meetings since it was set up (Malta, March 1999;
Brussels, November 2000). The Brussels Forum approved the setting up, from 2001,
of working parties on certain priority cooperation issues.

Sub-regional cooperation

On the margins of the Barcelona Process, an institutional framework for sub-regional
cooperation in the western Mediterranean also evolved after 1995:
the GTMO
(Group of Transport Ministers for the Western Mediterranean11) which has enabled
progress to be made on the sub-regional level.

There is no equivalent framework at present for the eastern Mediterranean.

9

10

11

Eurostat has published a summary of these statistics entitled «Transport trends in the Mediterranean
countries» (OOPEC, 1999, catalogue number: CA-23-99-306-EN-C-EN).
The Euro-Mediterranean Transport Forum is composed of representatives of the 27 Euro-Mediterranean
partner countries, the European Commission, international financial institutions (EIB, World Bank) and
the international organisations concerned (notably IMO, ICAO, UNECE).
The GTMO comprises the transport ministers of France, Italy, Spain, Portugal, Morocco, Algeria and
Tunisia.

6

Bilateral cooperation has also remained limited, Lebanon being the only
in its bilateral
Mediterranean Partners to have included a transport component
cooperation with the EU12.

*

*

*

*

Very few specific measures have therefore been initiated so far under the transport
dimension of the Euro-Mediterranean partnership. Every effort should be made to
use the new institutional framework provided by the Euro-Mediterranean Transport
Forum and the fresh impetus given to the partnership by the communication
“Reinvigorating the Barcelona Process” in order to relaunch Euro-Mediterranean
cooperation in the transport sector.

2.3

Areas in which specific measures could be taken

2.3.1

Support to the reform of the transport sector in the Mediterranean Partners

This is a crucial area to the extent that many bottlenecks in the Mediterranean
transport system are due to inappropriate sectoral policies (influence of the State,
insufficient competition,
inadequate institutional and regulatory frameworks). In
addition, a favourable climate for private investment should be promoted by
encouraging reform of transport in the southern Mediterranean. Three points are
fundamental in this context:

–

–

–

adaptation of the institutional,
legislative and regulatory framework,
notably in order to remove barriers to the freedom to provide transport
services and to modernise management of traffic flows;

approximation of social, technical, environmental and safety standards
and monitoring of their application by the national authorities in order to
avoid distortions of competition;

improvement of the interface between transport services and the customs
and immigration authorities, banking and insurance sectors.

2.3.2

Definition and promotion of a multimodal trans-Mediterranean transport network

Another basic objective of the transport dimension of the Barcelona Declaration
concerns the definition, initially, of a multimodal air-sea transport plan, given that air
and sea transport are the key elements of a transport system organised around an
enclosed sea. In a second phase, this plan would be supplemented by overland links,
crucial to the development of South-South trade. Attention should focus in particular
on the importance of rail-sea connections (linking ports with their hinterland). This
network will have a trans-Mediterranean dimension (interconnection with the
Trans-European Networks or TENs) and a South-South dimension. For the purposes
of devising this network, account should also be taken of the review already carried
in the framework of sub-regional cooperation (cf. 2.2) and the Third
out
Pan-European Transport Conference held in Helsinki in June 1997.

12

The ARLA Project (Assistance to the Reform of the Lebanese Administration) has a transport
component.

7

Infrastructure, whether the improvement of existing links or the construction of new
infrastructure (missing links), holds the key not only to investment in this particular
sector, but also to decisions to invest in the Mediterranean Partners in general.
MEDA funding, which can undoubtedly play a catalytic role in this area, is not
infrastructure (hardware). Thus an
normally used directly to finance physical
in-depth study on how to finance infrastructure is necessary, in particular on ways of
encouraging public-private partnership.

In this context, a new approach should be taken to infrastructure financing in future,
combining the available sources of funding in optimum fashion13.

It is also important to stress that any development of infrastructures must always be
accompanied by a comprehensive environmental impact assessment of a standard
approaching that required in the EU14.

2.3.3

Sea and air transport

a) Maritime and aviation safety

The recent disasters at sea (Erika, Ievoli Sun) highlighted the need to improve the
safety of shipping, and of the transport of oil and chemicals in particular. This
concern is all the more acute in the Mediterranean, an enclosed sea with a fragile
ecological balance. There is a great deal of oil tanker traffic in the Mediterranean,
and a disaster of the Erika type would have irreparable consequences on this fragile
environment. The current situation (oil
tanker traffic, application of the safety
measures adopted by the International Maritime Organisation) must be examined at
the Euro-Mediterranean level, together with the possibility of implementing the
measures from the Erika I and II packages in the Mediterranean (Erika I: double-hull
tankers, more stringent port control, stricter control of classification societies; Erika
II: establishment
in particular of a vessel monitoring, control and information
system - VTMIS).

A similar review must be carried out in the field of sea passenger transport, taking
account of the volume of traffic at certain strategic points such as straits (Gibraltar,
Bosporus and Dardanelles).

Experience developed in the European Union in the aviation sector could also be
usefully shared with the Mediterranean Partners in order to strengthen the national
authorities' control over aviation safety. The Commission is already engaging in such
cooperation with the countries of central and eastern Europe under the PHARE
programme, notably as regards standards issued by the Joint Aviation Authorities.
This experience could constitute a useful basis for developing Euro-Mediterranean
cooperation in this area. Progress towards European levels of safety and performance
in air transport in the southern Mediterranean might also require support from the
Union in the field of air traffic management, particularly as regards the acquisition

13

14

In this context, as pointed out in the Communication "Reinvigorating the Barcelona process", MEDA
funds can be used for preparatory work and feasibility studies on regional infrastructure projects
concerning interconnection with TENs (Trans-Mediterranean dimension) and/or mutual interconnection
of national systems (South-South). The main responsibility for financing infrastructure proper will
remain with the EIB and other public (national governments in particular) and private investors.
Cf. Directive 85/337/EEC, as amended by Directive 97/11/EC

8

and mastery by the Mediterranean Partners of the new techniques being put in place
in Europe.

b) Short-sea shipping

Short-sea shipping is of strategic importance in the Mediterranean, in view of the
distances involved and the fact that there are no practicable overland routes in many
cases. Short-sea services are also a key part of the multimodal transport chain
(road/sea or rail/sea). It is clear that any increase in trade - and hence transport -
flows in the region will result in increased use of this transport mode. Last but not
least, short-sea shipping is an environment-friendly transport mode, which provides
cheaper services than other modes.

Action can be taken at three levels to make this transport mode more attractive:

–

–

–

technical level (optimisation of loading units15 and the speed of ships in
particular);

administrative level (administrative and customs documents, use of electronic
data interchange,
international documentation, creation of administrative
assistance offices in ports);

and regulatory level, particularly in ports. Reference is made in this connection
to the measures contained in the Commission's communication on short-sea
shipping16 and the examination in progress at Community level of non-
discriminatory and transparent access to the port services market.

c) Approximating air transport policies at Euro-Mediterranean level

This is a crucial area given the tourism potential of the Euro-Mediterranean region
and the importance of facilitating relations between the economic actors concerned.
The Euro-Mediterranean framework should enable discussions to begin at
the
regional level on progressive liberalisation of air transport, in the light of the EU's
positive experience with the multilateral negotiations with the countries of Central
and Eastern Europe and Cyprus.

2.3.4

Global navigation satellite system (Galileo)

Extending the global navigation satellite system to the Mediterranean area has, from
in the creation of a
the outset, been seen as an important
trans-Mediterranean transport network and coherent multimodal transport systems.
With the development of the Galileo programme17, Euro-Mediterranean cooperation

instrument

15

16

17

In order, particularly through joint research and development actions, to define the optimum size of
loading units in the framework of existing legislation at Community level.
COM(1999) 317 final. The measures recommended include concentrating administrative procedures in
the hands of a single authority and the possibility of carrying out unloading before administrative
formalities are completed.
Galileo is the second generation European satellite navigation and positioning system, comprising a
totally independent system with its own satellite infrastructure. Following a definition phase - financed
jointly by the EU and the European Space Agency - to be completed at the end of 2000 and a validation
phase (2001-2005), Galileo should become operational in 2006 and will incorporate EGNOS (European
Geostationary Navigation Overlay Service). EGNOS, which will be operational in 2002, is the first
European satellite navigation initiative, consisting of an improvement in the services provided by the

9

in this area is even more crucial. Galileo will have a major impact on managing
the environment and efficiency of transport
capacity and traffic flows, safety,
systems. Priority needs to be given in this context to studying ways of associating the
Mediterranean Partners with Galileo, and of analysing the effects of
their
involvement on national and regional transport systems.

3.

3.1

THE ENERGY DIMENSION: BOOSTING THE EXISTING MOMENTUM

Energy in the framework of the Euro-Mediterranean partnership - The political
mandate given at Barcelona

There are two main reasons for developing close collaboration with the 12
Mediterranean Partners in the energy sector:

•

•

Geographical proximity to Europe's southern flank is a crucial factor,
from other
given the importance of
neighbouring regions such as the Gulf and Caucasus.

transit of energy sources

The cumulative volume of oil and gas reserves in the Mediterranean
Partners is an important guarantee of supplies to the EU.

the economic and financial chapter of

In the context of setting up the Euro-Mediterranean free trade area (FTA), the
the Barcelona
ultimate objective of
Declaration, energy is seen as a decisive facet of the Euro-Mediterranean partnership.
The Barcelona Declaration stresses that the participants "acknowledge the pivotal
role of the energy sector in the economic Euro-Mediterranean partnership and decide
to strengthen cooperation and intensify dialogue in the field of energy policies. They
also decide to create the appropriate framework conditions for investments and the
activities of energy companies, cooperating in creating the conditions enabling such
companies to extend energy networks and promote link-ups".

However, the Mediterranean Partners differ greatly as to their external trade in
energy. Some of them are net energy exporters (Algeria, Egypt), others are in
balance (Tunisia, Syria), while the remainder are obliged to import energy sources
(Morocco, Malta, Lebanon,
Israel, Jordan, Palestinian Authority, Cyprus and
Turkey).

Overall, the Mediterranean Partners are characterised by a substantial increase in
energy consumption, in particular electricity, and according to the forecasts this is set
to continue in future18. Consequently, to satisfy this demand, additional financial
resources will be required, which will have to be mobilised from private, bilateral or
multilateral sources.

18

existing GPS and GLONASS systems, based on a increase in regional stations relaying these signals.
Unlike GPS, EGNOS and Galileo are systems for civil use.
Of the estimated 190 billion dollars in energy investments needed in the Mediterranean partner
countries in the coming ten years,
the Mediterranean Energy Observatory estimates that almost
110 billion will be mobilised in the electricity sector alone, of which 70 billion for electricity
production.

10

3.2

Five years of Euro-Mediterranean cooperation in the energy sector

As in the transport sector, a Euro-Mediterranean Energy Forum was set up in the
wake of the Barcelona Declaration19.

Since its establishment in 1997, the Energy Forum has become the reference body
with regard to the development and direction of Euro-Mediterranean cooperation on
energy.

The Action Plan for the period 1998-2002, approved by the Conference of Ministers
held in Brussels in 1998, contains initiatives for Euro-Mediterranean energy
cooperation and constitutes the reference for the work of the Forum. It proposes
specific measures concerning political and administrative cooperation on the one
hand and cooperation at the level of industry on the other. With regard to political
and administrative cooperation, it focuses on adapting the Mediterranean Partners'
institutional and legislative framework and on preparing, in the context of the Forum,
guidelines for Euro-Mediterranean energy policy. In the case of industry, it stresses
the need for undertakings to adapt to the market (increase in demand in particular), to
include the concept of energy efficiency in their
thinking and to engage in
cooperation at Euro-Mediterranean level.

*

*

*

*

As in the transport sector, the start-up phase of the Barcelona Process has above all
concentrated on putting the energy cooperation instruments in place. However, there
has been a change of gear since the Granada Forum, with the focus of cooperation
shifting firmly to action on a number of priority cooperation issues.

3.3

Definition of priorities: Follow-up to the Granada Forum

The third meeting of the Forum, held in Granada (Spain) in May 2000, gave new
impetus to Euro-Mediterranean energy cooperation and approved guidelines for three
ad hoc working parties that will begin work in 2001.

The Granada Forum also reaffirmed the priority character of the following themes:

•

Reform of the legislative and regulatory framework, and restructuring of the
Mediterranean Partners' energy industry.

the energy sector

The Member States of the EU recently carried out radical reform of the legal and
regulatory framework of their energy sectors20. In the case of the Mediterranean
Partners,
is still generally characterised by a centralised,
State-controlled monopoly. This constitutes a major disincentive to inflows of
foreign direct
in order to increase the production
capacities needed to satisfy the growing demand for energy, particularly in the
electricity sector. The Mediterranean Partners must therefore embark on a global

investment, which is crucial

19

20

The Energy Forum comprises representatives of the 15 Member States of the Union and the 12
Mediterranean partners at the level of Director-General. Financed by MEDA, it is the main instrument
for promoting dialogue between the EU and the Mediterranean partners on energy issues.
This reform process was speeded up by the adoption in December 1996 of the EU Directive on the
internal market in electricity (96/92/EC) and in June 1998 by the Directive on the internal market in gas
(98/30/EC).

11

reform process in order to meet the requirements of competitive markets, leading to
the creation of an appropriate framework that can meet the international investment
criteria. In this context, account should be taken of the EU's experience in reforming
the energy sector. A number of liberalisation measures in particular need to be
implemented at national level:

*

*

*

*

*

establishment of independent regulatory authorities;

separation of production, transport, distribution and sales activities;

progressive introduction of competition in the production and
distribution sector;

reduction of subsidies and tariff reforms in order to bring prices
into line with costs;

of

licensing
participation,
promotion
independent power producers (IPP) to operate in the generating
segment.

notably

private

by

•

Convergence of the energy policies of the EU and the Mediterranean Partners

Looking ahead to the creation of a Euro-Mediterranean free trade area, convergence
is above all necessary with regard to security of supply, business competitiveness and
the environmental approach. The European Union is therefore encouraging the
Mediterranean Partners to accede to the Energy Charter Treaty, which is the
reference framework for security of supply and promotion of investment.

•

Integration of the Mediterranean markets and development of interconnections

This objective, which is directly linked to security of energy supply in the region, is
included in the "Common Strategy of the European Union on the Mediterranean
region”21, according to which the Union plans to “support the interconnection of
infrastructure between Mediterranean Partners, and between them and the EU,
drawing on the experience of trans-European networks (TENs) in transport, energy
and telecommunications". It is also part of the energy strategy outlined in the Green
Paper on the security of energy supply in the Union, adopted by the Commission on
29 November 200022. It can be achieved by strengthening cooperation between
focusing primarily on
industries in the EU and the Mediterranean Partners,
developing both North-South and South-South interconnections. Support from the
international financial
in particular the European Investment Bank,
should also concentrate on developing and modernising energy production and
transport infrastructures. Finally, in the same vein, enlargement of INOGATE23 to

institutions,

21

22

23

This common strategy was adopted in June 2000 by the European Council in Santa Maria da Feira.
COM(2000) 769, see Part Three, II/B/3 “Ensure external supplies”.
Interstate Oil and Gas Transport to Europe (INOGATE) is an EU programme launched in 1995 to
promote the construction and interconnection of oil and gas transport infrastructures between the EU
and the regions of the Caspian Sea, Black Sea, Mediterranean and South-East Europe. INOGATE gave
rise to an international agreement (INOGATE Umbrella Agreement), which has so far been signed by
17 countries of South-East Europe – including Turkey - the Caucasus and Central Asia, and provides a
framework for
solving questions relating to the operation, maintenance and safety of said
infrastructures.

12

the Mediterranean countries will be considered, as discussed at
Conference in Athens in June 2000.

the INOGATE

•

Sustainable development of the Mediterranean Partners and use of renewable
energy sources.

The objective of a sustainable development model for the Mediterranean Partners is
based on energy efficiency requirements, energy saving and environmental
protection. Achieving it will require action to improve the efficiency of the electricity
production process, significantly reduce electricity network losses and control
greenhouse gas emissions.

The use and promotion of renewables, based on the specific potential of the
Mediterranean region (in particular solar and wind energy), should make a
significant contribution to restructuring of the sector while improving environmental
protection. The development of renewables will also contribute to efforts to diversify
energy sources, with a view to enhancing security of supply in the Euro-
Mediterranean region and reducing the dependence of some Mediterranean Partners
on external energy supplies. Finally, the use of renewable energy sources has a
public service dimension, as it facilitates access by isolated rural populations to the
electricity network.

Moreover, the debate in the EU on the Kyoto objectives concerning the possible use
of flexible mechanisms, and the clean development mechanism in particular, could
open up new avenues for cooperation with the Mediterranean Partners.

4.

4.1

CONCLUSIONS AND RECOMMENDATIONS

Transport sector

While the foundations for the Euro-Mediterranean free trade area are progressively
being put in place (progress in the conclusion and entry into force of bilateral
association agreements, dismantling of tariff barriers in progress in most countries)
and the prospects for accession to the EU of certain Mediterranean Partners (Turkey,
Cyprus, Malta) are becoming clearer, the upgrading of transport systems in the
countries on the southern shores of the Mediterranean appears more urgent than ever.

This upgrading is based on a combination of structural measures (networks and
infrastructures) and reform (adaptation of the institutional, legislative and regulatory
framework; compliance with international standards). In fact these two types of
action are interdependent in that the increase in investment flows required to develop
infrastructures depends to a large extent on reform of the transport sectors in the
Mediterranean Partners. Furthermore, while the basis
this approach is
multimodal, particular attention must nevertheless be devoted to maritime transport
in view of its predominance in Euro-Mediterranean transport of goods, and to air
transport because of its predominant role in passenger transport.

for

In this context, the regional cooperation framework provided by the Barcelona
Process - of which the Euro-Mediterranean Forum is the keystone - and the resources
available under the MEDA programme can and must act as a catalyst. The statistical
this process through
network created by the Med-Trans project will support

13

providing the statistics,
enhanced cooperation in this area.

indicators and benchmarks necessary to bring about

4.2

Energy sector

The Mediterranean Partners are at a stage where their energy sector requires radical
adjustment. Reform must be based on liberalising the sector, restructuring the energy
industry and developing renewable energy sources. The development of energy
production and transmission interconnections is also a priority in terms of security of
supply at Euro-Mediterranean level. The EU must make every effort to encourage the
Mediterranean Partners to accede to the Energy Charter Treaty and INOGATE.

in place the appropriate
In accordance with these principles,
instrument (the Euro-Mediterranean Energy Forum) to ensure ongoing dialogue. This
dialogue is designed to promote debate and the exchange of ideas with the
Mediterranean Partners on the measures most suited to stimulate and accompany the
reform process in the energy sector.

the EU has put

14

Annex 1 : Area and population of the EU and Mediterranean Partners

Source
MEDSTAT

Area (km2)

Population 1998

Population
projection 2025

(Million)

EU (15 Member
States)

3 240 000

374.6

MED

5 400 000

225.6

388.3

338.3

(12
Mediterranean
Partners)

Annex 2 : Transport in the Mediterranean region

Euro-
Mediterranean
transport
of
goods:
breakdown

1997 figures

Volume

Value

Flows

Sea

Air

Road

Rail

163 million
tonnes
€

110
million

83%

0.2%

4.24%

0.67%

53%

16%

23%

0.84%

Passenger transport at
Euro-Mediterranean
level

1997 figures

Million

MEDSTAT statistics

Sea

8.5

Air

86

15

Transport infrastructure indicators for the Mediterranean Partners

Road network

Rail network

Countries

Length
(km)

Density(km
/1000 km2)

Length Density(km
/1000 km2)

Notes

Algeria

100 992

42.40

4 219

1.77

Cyprus

10 654

1 151.66

-

44 498

44.43

4 810

Egypt

Israel

Jordan

15 464

698.31

7 519

84.16

Lebanon

6 359

608.40

Malta

1 972

6 240.51

-

4.80

43.44

4.32 Note 1

-

-

962

386

-

-

Morocco

57 520

80.92

1 907

2.68

Palestinian
Authority

Syria

Tunisia

Turkey

2 055

342.60

-

-

41 451

223.84

18 997

122.24

382 000

468.95

2 767

1 860

8 607

14.94

11.97

10.57

MED

683 122

128.00

20 708

5.51 Note 2

Notes

1. Length of
network only

the rail network: Hijazi

2. Density of the MED rail network: the figures do not take account of the countries
without a rail network.

Source : MEDSTAT. Full statistics are available in the Eurostat publication «Transport trends in the
Mediterranean countries» (OOPEC, 1999, catalogue number: CA-23-99-306-EN-C-EN). These
statistics were prepared by Eurostat and CESD-Roma in collaboration with the National Statistical
Institutes of the Mediterranean Partners.

16

Annex 3: Development of the energy situation in the region (12 Mediterranean Partners) 1985-1998.

Mediterranean Basin (12 Mediterranean Partners)

Gross domestic consumption

1985

1990

1995

1996

1997

1998

Total
Solid fuels

Oil and oil products

Natural gas

Nuclear

Renewables

Other fuels

Million
toe

% Million

toe

% Million

toe

% Million

toe

% Million

toe

% Million

toe

%

117.7

100.0

152.4

100.0

180.3

100.0

189.7

100.0

198.7

100.0

207.3

100.0

16.3

73.4

15.4

0.0

12.5

0.2

13.8

62.4

13.1

0.0

10.6

0.1

22.1

89.6

27.1

0.0

13.8

-0.1

14.5

58.8

17.8

0.0

9.1

-0.1

23.8

103.7

37.5

0.0

15.5

-0.1

13.2

57.5

20.8

0.0

8.6

-0.1

27.4

107.0

39.2

0.0

16.2

0.0

14.4

56.4

20.7

0.0

8.5

0.0

30.1

108.8

43.4

0.0

16.3

0.2

15.2

54.7

21.8

0.0

8.2

0.1

31.9

112.2

46.2

0.0

16.6

0.3

Electricity production (TWh)

1985

1990

1995

1996

1997

1998

Total (TWh)

Nuclear

Conventional thermal

Hydro, wind, solar & geothermal

Coal

Oil products

Natural gas

Biomass and other

TWh
121.3

%
100.0

0.0

95.9

25.4

24.9

47.1

23.9

0.0

0.0

79.1

20.9

20.5

38.8

19.7

0.0

TWh
172.1

0.0

131.0

41.1

33.4

49.5

48.1

0.0

TWh
239.2

0.0

183.1

56.1

53.0

56.2

73.7

0.2

%
100.0

0.0

76.6

23.4

22.2

23.5

30.8

0.1

TWh
258.3

0.0

196.0

62.4

58.8

56.7

80.3

0.2

%
100.0

0.0

75.9

24.1

22.8

21.9

31.1

0.1

TWh
277.7

0.0

215.2

62.6

64.7

60.5

89.7

0.3

%
100.0

0.0

77.5

22.5

23.3

21.8

32.3

0.1

TWh
296.9

0.0

231.4

65.5

70.0

68.2

93.0

0.3

%
100.0

0.0

76.1

23.9

19.4

28.8

27.9

0.0

17

15.4

54.1

22.3

0.0

8.0

0.1

%
100.0

0.0

77.9

22.1

23.6

23.0

31.3

0.1

Energy dependence (%)
(IEA-OECD figures)
All fuels

Solid fuels

Oil and oil products

Natural gas

1985

-45.7

34.7

-53.9

-129.2

1990

-37.6

41.5

-44.8

-96.3

1995

-23.8

47.9

-24.9

-75.6

1996

-22.4

50.8

-23.5

-79.3

1997

-23.0

54.3

-22.6

-86.8

1998

-21.2

54.8

-18.3

-89.2

18