In November 2002, the European Union (EU) energy commissioner, Loyola de Palacio, announced that an agreement had been reached between the energy ministers of the respective EU governments on the opening and eventual integration of the European gas and electricity markets.
Broadly, the extent to which the agreement and the EU directives that precede it will impact on the continental project finance market will largely depend on how vigorously the agreement is applied by the EU member states and in particular Germany and France. Moreover, in looking to the future, the experience of market deregulation in the UK provides a useful illustration of some of the possible effects of full liberalisation in the EU.
Deregulation
