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 today (December 8) 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 theis 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 intergovermental 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.