The French EU Presidency has clearly stated its ambition to reach political agreement on the whole of the energy package by the end of this year or in the first few weeks of 2009. The French view ambitious agreements at EU level as strengthening Europe’s driving role in the international climate change negotiations in 2009. Essentially, a whole year has passed since the European Council of March 2007 and its recommendations on continuing liberalisation. The debate intensified following the proposals that the European Commission presented in September 2007 on the liberalisation of energy markets. The bulk of the negotiating work has been done even if at this stage of the procedure, between first and second reading, member states and the European Parliament are far from seeing eye to eye on energy liberalisation. Does France have a ‘plan B’ if the Council does not work out a final agreement with the European Parliament? “Yes, 2012,” said a French diplomat. “It is not just a question of priorities, but of agenda,” she said. “We are constrained by Parliament packing up next year. We would not just lose six months,” warned a UK diplomat.

France may also be shielded during their six-month Presidency stint from ownership unbundling by the back door. The Germans were rudely awakened just hours before the Energy Council, in February 2008 by the announcement that E.ON would “voluntarily” undertake unbundling to avoid further Commission competition proceedings. Weeks before the French Presidency, RWE announced it was selling its gas network in Western Germany. A similarly undiplomatic move by the Commission against France’s energy giants would be a serious blow to French pride.