Economic Reform in Europe: Integrating and Liberalizing the Market for Services

22 Pages Posted: 21 Feb 2002

See all articles by David M. G. Newbery

David M. G. Newbery

University of Cambridge - Department of Applied Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: January 2002

Abstract

The EU faces challenges in reforming the Gas and Electricity Directives to implement the single market in electricity and gas. The Paper argues that there is unfinished business in the areas of regulation, restructuring, encouraging proper risk management through contracting, and designing markets and regulation to ensure effective and sustainable competition in the services supplied over the networks. Regulators often lack critical information and appropriate power to act. Restructuring is problematic, requiring forceful competition authorities with a clear agenda to achieve desirable structural reforms. A key issue is striking the right balance between complete liberalisation and ensuring adequate capacity and investment. Finally, proactive competition policies will be necessary to resist the powerful forces for vertical and horizontal integration visible in the Union.

Keywords: Regulation, competition, risk, contracts, electricity, gas, EU

JEL Classification: K23, L51, L94

Suggested Citation

Newbery, David M. G., Economic Reform in Europe: Integrating and Liberalizing the Market for Services (January 2002). Available at SSRN: https://ssrn.com/abstract=301224

David M. G. Newbery (Contact Author)

University of Cambridge - Department of Applied Economics ( email )

Sidgwick Avenue
Cambridge, CB3 9DE
United Kingdom
+44 1223 335 246 (Phone)
+44 1223 335 299 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom
+44 1223 335 246/7 (Phone)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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