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Sarkozy plays down Lisbon setback
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Energy

France has listed energy as one of the top priorities during its presidency. Energy concerns have especially heightened recently as oil prices hit a record high above 140 US dollars per barrel, sparking protests by truck drivers across Europe.

French Secretary of State for European Affairs Jean-Pierre Jouyet has said France "would go as far as possible" to reach an agreement on a new EU energy package before the end of its term. The European energy policy should seek to reduce dependence on fossil fuels and increase investment in energy networks.

The goal, if achieved, would allow the following Czech presidency to present legislative proposals on the issue to the European Parliament before it breaks up on 9 February 2009, in preparation for the next elections.

However, EU leaders have been largely divided on the energy deal. France and Germany have clashed with other EU governments over plans to break up energy giants and open up the bloc's energy market in an effort to increase customer choice and drive down prices.

EU leaders have also disputed over how to deal with the soaring oil prices.

Sarkozy had urged EU leaders to take emergency measures by capping value added tax (VAT) on fuel, but the proposal was rejected by German Chancellor Angela Merkel and Swedish Prime Minister Fredrik Reinfeldt.

Italian Prime Minister Silvio Berlusconi's introduction of a windfall tax on oil companies and Austria's call for an EU tax on commodity speculation also met cold response from other EU countries.

As a compromise, the European Commission will conduct a study together with France on all proposed fiscal measures to deal with soaring oil prices and a report was expected before the next EU summit in October.

EU leaders may still have to find ways to reach agreement on certain key issues, such as a common EU defense policy, but the fact that they are shifting attention to issues more relevant to ordinary citizens may prove helpful to salvage the somewhat endangered idea of EU integration, analysts say.

(Xinhua News Agency July 2, 2008)

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