Senior government officials from South East Europe (SEE) met with the European Commission on 15 July in the first round of negotiations on a legally binding agreement regarding a common energy market in the region.

Building on the political endorsements of 2002 and 2003 (the so-called Athens memoranda), the parties hope to reach agreement on the text of the treaty by the end of 2004, and open electricity and gas markets between 2005 and 2007.

“The proposed treaty is a unique political chance for the region,” said Special Coordinator Erhard Busek in his address. “Similarly to the way the European Coal and Steel Community cemented reconciliation between France and Germany, and was a prelude to the 1957 Treaty of Rome, the proposed treaty could further strengthen relations within the region, and drive a comprehensive economic and political integration with the European Union.”

In the course of the process, SEE governments will adopt all relevant EU directives on energy and environment, and hope to undertake comprehensive modernisation projects with the help of foreign investment. Once EU standards are implemented, SEE countries will also gain access to the EU’s internal energy market, irrespective of the status of their membership negotiations.

Sponsored by the Stability Pact, the talks were held in Vienna with the participation of SC Erhard Busek, Mr. Bruno Zluwa, the Director General of the Austrian Ministry of Economy and Labour, as well as senior advisors to SEE prime ministers.

Annex:             Introductory remarks by SC Erhard Busek at the first High Level Political Meeting of Senior Advisors to the Prime Ministers of the Energy Community of South Eastern Europe, 15 July 2004