Summary: 4 March 2009, Brussels - Speech by Olli Rehn, EU Commissioner for Enlargement, "Turkey as an energy hub for Europe: prospects and challenges" at the European Policy Centre
Your Excellencies, Ladies and Gentlemen,
It is a great pleasure for me to participate in the European Policy Centre's programme on "Turkish Insights" and specifically in today's event. The EU shares numerous interests with Turkey. Turkey is a partner of key strategic importance for all European citizens, in terms of security, stability and prosperity. The EU and Turkey need each other.
Today gives us an opportunity to underline how the European Union and Turkey can be complementary in particular in the field of energy. Energy is an area in which the benefits of Turkey's EU accession process are particularly easy to see. The challenges at stake include the secure and reliable energy supply for our societies - vital for their proper functioning - as well as the competitiveness and sustainability of our economies.
More specifically, Turkey can help the EU diversify and secure its energy supply. At the same time, integration of Turkey into the EU's internal energy market will enable Turkey to build a functioning and reliable domestic energy market and the infrastructure needed for its rapid and sustainable economic growth.
The European Energy policy has to be seen in the context of the challenges we are facing today. Let me mention two of them: climate change and security of supply. As we all know, there is no single country capable of tackling these issues alone. The same is true for the EU.
Securing reliable and affordable energy supplies is a major challenge for Europe today. It is also for Turkey. The recent Russia - Ukraine gas crisis illustrates the urgent need for diversification and investment. Turkey can play a key role in the diversification of energy supply routes to Europe. However, geography alone is not enough. Europe can help Turkey develop its role as an energy cross roads, through the deepening of EU - Turkey energy cooperation. The EU can also help address Turkey's
concerns about its own security of supply.
The oil pipeline Baku-Tbilisi-Ceyhan has been operational for almost three years, and is a major achievement. Turkey is also a vital partner for the planned Nabucco gas pipeline project which intends to carry gas from the Caspian to Vienna. The Nabucco pipeline would directly connect the natural gas suppliers of the Caspian Sea region and the Middle East to consumers in the European Union, Turkey and the Caucasus region.
The Nabucco pipeline is a key issue in EU - Turkey energy relations. The European Commission is strongly committed to the Nabucco pipeline project which is among the European Union's highest priority energy projects. We must now quickly address the outstanding issues and move on with the implementation of the project, which is in the interest of both the EU and Turkey.
We are determined to further support the mutually beneficial cooperation among the producer, transit and consumer countries, international institutions and energy companies in order to create the necessary political, legal, economic and financial conditions for the successful and prompt realisation of the Nabucco pipeline project. The EU has the market, Turkey has the geography. Only together can we achieve this.
The realisation of Nabucco will foster foreign direct investment in the source and transit countries - most importantly in Turkey - as well as the transfer of know-how and technology. It will also boost cooperation among the European Union, its Member States, Turkey, the countries of the Caucasus and Caspian Sea regions and the Middle East contributing thus to the creation of an effective energy partnership.
I welcome the discussions that have taken place with our Turkish partners in view of making Nabucco operational as of 2013. We have no time to waste. Nabucco should become a strong asset in EU-Turkey relations, instead of an "issue".
The title of this Conference refers to hubs, and specifically Turkey as an energy hub. Clearly the EU can assist in turning Turkey into an energy cross roads. Nabucco is an important project in this respect. But as you know Turkey would also need to introduce a number of changes into its energy policy. Such changes are for instance the introduction of clear and enforceable rules on gas transmission, the liberalisation of Turkey's domestic market at least for gas and the increase of investment
on infrastructure, most importantly in gas storage.
Let me take this opportunity to renew once more the European Union's standing invitation to Turkey to join the European Energy Community. The Energy Community Treaty provides for an ideal framework for deepening regional energy co-operation. I believe that it is important to link the Turkish and EU/Western Balkan energy markets in order to create a single energy platform with the same market rules. This would considerably facilitate investment in the energy sector and increase security of
supply for all partners. Accession to the Energy Community Treaty would be a major step forward in the process of deepening co-operation.
I would like to take this opportunity to say a few words about Turkey's EU accession process. Today the strategic thinking behind the accession process remains more valid than ever. It is a core interest of the EU to have a stable, prosperous and democratic Turkey by its side. Likewise, it is a core interest of Turkey to be integrated into the European Union, which provides for a clear, long-term prospect for its on-going modernisation process.
With regard to energy, Turkey has already taken steps in aligning its energy market with EU internal market rules. The full liberalisation of this rapidly growing market will create a transparent, open and competitive domestic energy market for the benefit of the Turkish consumer. It will also bring significant further investment opportunities for business. The EU supports these policy objectives.
Accession negotiations are instrumental in achieving these goals. As you probably know, for some time now it has not been possible to establish a consensus among all EU Member States that would allow us to open the energy chapter.
However, this should not prevent the further development of our energy relations. On the contrary, deepened energy cooperation could contribute to the establishment of an environment conducive to opening negotiations on the Energy Chapter.
Let us now concentrate on how we can deepen our cooperation in the field of energy and realise the enormous benefits for both sides. The Commission is ready to take the EU - Turkey energy relations forward. We expect from Turkey the same commitment and readiness.
Concluding I would like to thank the European Policy Centre for organising this event and for always hosting interesting speakers on topics close to the heart of the accession process of Turkey to the EU.
Energy has been more than once a reason for conflict. Let us together make energy a tool of a peaceful relationship and development.
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