The evolving regional energy market in Southeast Europe will in the future also cover gas, in addition to electricity.  A Memorandum of Understanding was signed to this end 8 December in Athens by participating countries* and by EU Commissioner Loyola de Palacio as part of the joint Stability Pact / EU Commission Energy Initiative in Southeast Europe.  By signing up to this process, SEE countries committed themselves to reform their respective gas sectors into market-based systems following the provisions of the relevant Acquis Communautaire.  The commitments regarding electricity taken by SEE countries in the framework of the Athens process, named after the signing of a earlier Memorandum of Understanding in the Greek capital in November 2002, remain in place.  However, it was agreed today that both Memorandums of Understanding would be rolled over into a legally binding treaty in the next six months (until June 2004), covering gas and electricity.

As an international treaty is a more binding form of intergovernmental agreement, this will further the legal predictability of the process and is specifically intended to increase security for investors, donors and financial institutions.  It is understood, that the improvements of the SEE energy sector can only be realised if the reform process is secured by political commitment, which in its turn is indispensable to attract the much-needed public and private investments.

Special Co-ordinator Erhard Busek underlined, that by implementing the Athens Process, SEE countries will be well placed to attract some of the worldwide share in energy investments, as they align themselves with a legal regime already known to investors, that of the European Union.  He also stressed, that the interconnection of existing capacities and the creation of a real market for electricity and gas, were vital element for attracting foreign investors to SEE in general.  “Every investment depends on secure energy supply”, he added.

The European Commission and the Stability Pact jointly drive the Athens Process since 2002, with a view to creating a regional energy market in SEE.  This should increase reliability of the supply, lower prices for consumers and create opportunities for investments in the energy sector.

*   Signatories are, as participants: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR of Macedonia, Romania, Turkey, Serbia and Montenegro, UNMIK and the European Community;

                           as political participants: Greece, Italy and Austria;

                           as sponsors: the Special Co-ordinator of the Stability Pact for South Eastern Europe;

                           as observers: Hungary, Moldova and Slovenia.

 See also:

• Conclusions of the 6th Permanent High Level Group Meeting, Athens, 7 December 2003
• Memorandum of Understanding on the Regional Energy Market in South East Europe and its Integration into the European Community Internal Energy Market - "The Athens Memorandum 2003", 8 December 2003
• Joint Declaration of the Ministers of the South East Europe Regional Energy Market, 8 December 2003