Intergovernmental agreements in the field of energy: Council strengthens energy security

The Slovak Presidency informed today the member states permanent representatives that on 7 December 2016 the Council and the European Parliament reached a provisional agreement on the proposal for a decision on establishing an information exchange mechanism with regard to intergovernmental agreements and non-binding instruments between member states and third countries in the field of energy.

The aim of the proposed decision is to correct shortcomings of the current information exchange mechanism on energy contracts, thus enhancing the transparency and consistency of EU's external energy relations and strengthening EU's negotiation stance vis-à-vis third countries.

This decision, as well as the regulation on the security of gas supply, will play a major role in the implementation of the security dimension of the Energy Union Strategy.

Following three trilogues, a compromise was found on the key issues:

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  scope of the ex ante assessment of IGA's by the Commission: it will cover gas and oil with a standard review clause
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  definition of intergovernmental agreement: addition of "international organisations" and "transit"
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  Member States should explain to the Commission in writing when it departs from the opinion of the Commission in its ex ante assessment

Peter Žiga, Slovak Minister for Economy said: I welcome the fact that an agreement between the Parliament and the Council has been reached in only 9 months. This law will introduce significant improvements to transparency in how intergovernmental agreement on energy are assessed against European law. There will be an end to hidden and damaging deals. This agreement should build trust and solidarity between Member States, prevent damaging provisions and enable an early intervention in the process. Our Presidency is pleased to have achieved the first legislative agreement under the Energy Union.

Next steps

Coreper will be invited to endorse the agreement at a forthcoming meeting. The Chairman of Coreper will then send a letter to the Chairman of the European Parliament's ITRE committee.

The letter will indicate that, if the Parliament adopts at its plenary session the compromise text as approved by the Coreper, the Council will then adopt the text in first reading without amendment.

This should enable the new legislation to enter into force by mid -2017.

Background

As part of its previous "Winter Package" of February 2016, the Commission proposed to examine the international agreements in the field of energy before they were signed by member states It argued that if certain provisions of an intergovernmental agreement ('IGA') are found to be incompatible with Union law (such as the Third Energy Package, competition law, public procurement rules), it is very difficult or even impossible for a member state to renegotiate the IGA with a third country.

The proposal also responds to the European Council conclusions of March 2015, which called for full compliance with Union law of all agreements related to the buying of gas from external suppliers.

The Council agreed on a general approach on June of this year. After the vote in the Parliament's ITRE Committee on 13 October, two trilogues were held in November.

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  Commission proposal
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  European Council conclusions of March 2015
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  Energy Union Strategy
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  Council general approach
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  Background brief - Energy