Today's Date:

European Council

It is crucial for the EU at last to give itself a genuine common energy policy. In my view, it's the key issue for us. France has made proposals in her memorandum. By and large, we support what the Commission has proposed in its Green Paper.

This European strategy must satisfy three objectives:

- ensure security of supply,

- take account of the environmental impact,

- maintain competitiveness for both consumers and companies.

This presupposes assessing the contribution of each energy source in the light of these three objectives and very clearly identifying any gaps in terms of production capacities and transport capabilities in each EU country.

Consequently, we must also create the conditions allowing energy companies and every country to increase investment in a more informed way.

Since there is an investment deficit in Europe in the energy sector.

This is the very issue which has to be addressed through the multiannual strategic framework which the Commission is to develop. It must enable us to combine:

- each member State's sovereign choices for its energy package with

- the need to be mindful of their collective impact on Europe as a whole.

On this point, I should like the Council's draft conclusions to go as far as possible. At stake are:

- the energy security of all EU citizens,

- our industry's competitiveness,

- resolute action to combat climate warming.

To take up these challenges, Europe must massively increase its research effort particularly in new energies and energy efficiency. This must be one of the priorities for the Community budget (FP7) and for the European Investment Bank.

There must also be a stronger European diplomatic effort vis-à-vis all our suppliers. In this respect, ratification of the Energy Charter is a priority.

As the Commission proposes, we could have an annual strategic meeting, at each spring European Council, to assess the European energy situation, the problems encountered and the measures to be undertaken.

Of course, we must go on making our energy markets more flexible and open. The regulation of the energy sector must be improved in all our countries. But building an Energy Europe can't just be a matter of liberalizing the markets. We need strong companies, with powerful capacities for investment and research, commensurate with the European single market, and technological challenges, which are global. We must do our utmost to encourage the development of European champions, driven by solid industrial ambition, and not by purely financial considerations./.