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Decrypting the EU Energy Jargon

Public Affairs Blog - Tue, 28/04/2015 - 20:08

I love words. I work in public affairs and communications, so I love words. As public affairs consultants, we write all day long. We write, rewrite, rephrase, edit, amend, tweak, this is all we do: we play with words, we build strong cases and look for convincing arguments.

Read industry position papers and Commissioners’ speeches, they use the same jargon. This jargon is comfortable. It gives us an ‘esprit de corps’, as it were. However, the jargon also clouds our discussions. As consultants we try not to fall into the trap and propose alternatives. It is not always easy. In the energy policy area, 10 phrases are on everyone’s lips. They are so commonly used that we tend to forget what they really mean and where they’re coming from.

  1. Energy Union

Term coined in 2014 by then Polish Prime Minister Donald Tusk to instigate common gas purchasing and strengthen the EU’s negotiating powers towards external suppliers Russia. This is now a catch-all phrase for our entire Energy and Climate policy programme for  the next five years – which in effect no longer includes obligatory common gas purchasing.

  1. Decarbonisation

This is not even a word in the English dictionary (about this, I encourage everyone to read the Commission’s publication on Misused English Words and Expressions in EU Publications, which is an excellent read). Brussels is not Oxford, so let’s continue to encourage Europe to ‘decarbonise’ its economy, just like we want to ‘internalise external costs’.

  1. Level-playing field

You will rarely find a stakeholder not asking for a ‘level-playing field’. More often than not, it will be accompanied by words of caution against ‘unintended consequences’ and calls for the popular ‘regulatory certainty’.

  1. Energy subsidies

There is a tension about subsidies, almost a love/hate relationship about them. You dislike them unless they are directed to you. Whilst they are widely acknowledged for distorting the market, they can be accepted under certain conditions, for example for technologies that are not yet commercially available. Their phasing-out is recommended, but Member States continue to use them massively, both for renewables and fossil fuels. Figures are usually thrown into the debate, with no strong evidence backing them.

  1. Carbon Leakage

When I first heard this phrase in 2009, I remember thinking there were actually molecules of carbon physically leaking from somewhere. There are not. In effect, this is about industries likely to relocate outside Europe (and emitting carbon there) due to additional costs incurred by EU climate policy (namely, the Emissions Trading Scheme). Most expert studies have so far concluded that there is no evidence of carbon leakage. This might change when/if the carbon price increases.

  1. Completion of the internal energy market

Since Heads of States agreed to complete the internal energy market by 2014 (February 2011 Council Conclusions), and to “allow gas and electricity to flow freely”, this has become the mantra of EU energy policy. Progress has definitively been made – with more interconnections, more diversity of supplies and some convergence in prices. But who would really argue that the EU energy market prevails over the 28 national energy markets?

  1. Hardware

A new piece of vocabulary that emerged with the Energy Union. This is neither a computer nor a piece of electronics, but rather the physical infrastructure needed to complete the internal energy market: gas and electricity interconnections, pipelines, LNG terminals.

  1. Software

Again, a creation of the Energy Union.  Should be understood as the regulatory framework building links between domestic gas and electricity markets and making cross-border flows possible. Be it network codes or the reform of the power market design, they all fall under ‘The Software’.

  1. Intermittent

Don’t describe renewable energies as intermittent. EWEA, the wind energy association, “recommends using the qualifier “variable” when referring to wind power generation, rather than “intermittent”, which means starting and stopping at irregular intervals.” Now you know.

  1. Clean coal

A very bold oxymoron, and a good marketing tool to promote Carbon Capture and Storage.

The EU energy lingo goes beyond these few examples. I could expand on ‘windfall profits’, ‘technology neutrality’, ‘capacity mechanisms’, ‘prosumers’, ‘the energy-only market’ and many others. If you have any personal preferences, feel free to share. For my part, I am off writing about the plenary vote on ‘Indirect Land-Use Change’ – my favourite.

 

Clara Lemaire

 

 

Categories: European Union

Did Greece get promised a deal on t-bills?

FT / Brussels Blog - Tue, 28/04/2015 - 19:31

Monday night’s live TV interview with Alexis Tsipras, the first since he became Greece’s prime minister, has generated headlines because of his declaration that, if the deal he ultimately strikes with eurozone creditors includes measures he promised to avoid, he’d put it up for a referendum.

But the three-hour-long session contained some other nuggets that illustrated anyone who thought Tsipras was going soft after reshuffling his bailout negotiating team on Monday morning may have miscalculated.

At the very top of the show, for instance, he accused Angela Merkel, the German chancellor, of “political weakness” for failing to admit the Greek bailout has been “a failure”.

For eurozone crisis obsessives, another exchange was particularly notable: Tsipras claimed that as part of the critical agreement on February 20 to extend Greece’s bailout through June, he received a verbal commitment that the European Central Bank would allow Athens to sell more short-term debt.

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Categories: European Union

Better public administration is key to combatting youth unemployment

Europe's World - Tue, 28/04/2015 - 10:32

The impact since 2009 of the EU’s economic and financial crisis on the labour market for young people has been deep and unsettling. Youth unemployment has risen so significantly that in some EU countries, particularly in southern Europe, one in five young people are not in employment, education or training.

These levels of youth unemployment are disastrous. That there are so many young people without hope and without prospects is bad enough, but on top of that, there are huge economic and societal costs. Even if the European economy recovers, many young people will not be able to find a good job. Yet it is unacceptable that unemployment should be the first labour market experience of young people when they finish their education or training. Europe needs to mobilise all its forces in to combat youth unemployment.

EU leaders have agreed to set up a Youth Guarantee scheme designed to soften the impact of the crisis. But the high rates of youth unemployment often have deeper roots. They also point to shortcomings and structural weaknesses in such other spheres as public administration, education and labour market institutions. The Youth Guarantee’s promise is that all young women and men under the age of 25 will receive a good-quality offer within four months of leaving formal education or becoming unemployed. But labour market conditions differ around Europe, so fulfilling this promise will require a broad range of measures that must be tailor-made for each country. This implies a significant financial investment by member states that could then be topped up from EU funds. The medium- and long-term benefits of successfully implementing the Youth Guarantee are huge, making these costs the best way to ensure sustainable future growth in Europe.

“We must help disfavoured countries build structures that are better equipped to tackle youth unemployment”

With last year’s establishment of the European Network of Public Employment Services (PES), we now have a firm basis for co-operation on labour market policies. The aim is to reduce unemployment by increasing employment service efficiency, by fostering exchanges and mutual learning. This will help to improve the functioning of labour markets by better matching jobseekers and employers and by promoting mobility. The PES Network has created a formalised “Benchlearning” system that combines elements of benchmarking and mutual learning.

One of the Network’s major tasks is to enable public employment services in member states to identify optimal strategies for combatting youth unemployment. This is complicated by differences in the level of resources available to national services and by the range of challenges posed by labour markets in the various member states. Sharing experience on successful measures and adapting those measures to fit other national labour markets could be an important first step in developing new solutions to youth unemployment, but this will only be effective if there is a deep understanding of the unique nature of each country’s labour market.

All countries need to prioritise funding for tackling youth unemployment. The EU will top up national spending through the European Social Funding, the European Investment Bank and €6bn included in the Youth Employment Initiative. However, it is vital that public authorities are able to make efficient and effective use of the money. Simply handing out extra cash will not solve the problem. We must help disfavoured countries build structures that are better equipped to tackle youth unemployment.

The Youth Guarantee together with the PES Network will help, but there are a number of issues that must be addressed.

Among the most important is making sure young people get qualifications and skills that meet employers’ demands. This should be done throughout their education and not left until they are already looking for work. To do this, we need to improve educational and training systems to incorporate skills and knowledge that are directly relevant for the labour market. This requires a profound knowledge of national labour market conditions.

Another priority area is the transition from school to employment. We need specialised structures in public administrations to support young people after they finish education. It’s vital they are provided with tailor-made job placements and career counselling covering job opportunities at regional, national and European level. The authorities also need to form a better picture of the generation of young people who are seeking to enter the labour market, so they can respond to specific problems hampering young jobseekers, such as mobility costs or lack of language skills.

“Building trust between social partners could help the search for more flexible solutions to integrate young people into the labour market”

Improving public employment services should not be done in isolation. We need strong co-operation between the public and the private sector, bringing together employment services, career guidance providers, education and training institutions, employers and trade unions. Given the extraordinary levels of youth unemployment, it’s particularly important to improve the sometimes difficult relationship between employers and unions. Building trust between social partners could help the search for more flexible solutions to integrate young people into the labour market. The future of millions of young people should not be held back by ideological controversies or political negotiations. Beyond the current crisis, major trends such as the digitalisation of the world of work are beginning to shape our labour markets. By building well-functioning and flexible public structures with experts in the field of youth employment, Europe will be able to face these future labour market challenges successfully.

 

IMAGE CREDITS: CC / FLICKR – atelier PRO

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