Greening the Internal Market in a Difficult Economic Climate

As bankruptcies and unemployment rise in 2009, no doubt the negative impact of the recession on market integration and liberalization will be further felt. In 2008, one of the most significant policy developments concerning the internal market was the stalled liberalization of the energy sector. However, this was in no way linked to the economic slow-down: French and German governments have long dragged their heels on liberalization in these sectors and long opposed the unbundling of gas and electricity production and supply. More surprising was the success in adopting ambitious targets to cut EU carbon emissions over the next decade. Despite the inevitable watering down of the European Council’s initial goals and the Commission’s legislative proposals and the frequent disappointment of environmentalist groups, this represents a considerable achievement – if not the greatest legislative accomplishment for the EU in 2008. Following a brief analysis of the agreement on energy markets, the bulk of this article is centred upon the climate change package.