Energy Policy in the Communities

Abstract

Energy policy in the European Community has been limited, thus far, to the collection of information, the setting of objectives, support for some research and demon stration projects, and the making of recommendations to member countries. This situation is likely to continue in the near future, because the institutions of the Community were not set up to cope with the complexities of a common energy policy. More importantly, there are major differences in resource endowments and energy policies of the member states, which inhibit cooperation, since energy is an extremely sensitive area of national sovereignty. Since the 1973-74 oil crisis, more energy policy has been made at the national level than at the European level. However, on the whole, west European countries have responded more rapidly with revisions and improvements in their energy policies than has the United States. They have acted to set objectives whereby Community dependence on imported energy would be reduced by 1985, and to encourage adjustment of the mix of energy sources. Even if these objectives are achieved, the EC will remain an area dependent on the outside world for approximately 50 percent of its energy needs in the mid-1980s.