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   "  THE  EUROPEAN  COMMUNITY  HAS  FIRMLY  AND  IRREVOCABLY  ACCEPTED  THE
   DEVELOPMENT  OF THE SINGLE MARKET AND THE INTERNAL ENERGY  MARKET.  MOVES
   TOWARDS  THE  ACHIEVEMENT OF THESE AIMS ALREADY HAVE BEEN MADE  AND  WILL
   AFFECT  ALL  SECTORS OF ACTIVITY INCLUDING INDUSTRY, TRANSPORT  AND,  NOT
   LEAST,  THE ELECTRICITY SUPPLY SECTOR.  THESE ARE  FUNDAMENTAL  POLITICAL
   DECISIONS AND THE QUESTION THAT THE EUROPEAN COMMISSION HAS TO ANSWER  IS
   NOT  WHETHER  OR  NOT TO GO FORWARD, BUT HOW TO  DO  IT.  THIS  MOVEMENT,
   WHATEVER  ITS ULTIMATE TIME SCALE, IS IRREVERSIBLE.  THIS CLIMATE  CHANGE
   OF PERCEPTIONS AND ATTITUDES, IS ALREADY UPON US, WHETHER WE LIKE IT,  OR
   NOT.
   THE  EVOLUTION OF EUROPEAN SOCIETY IS SUCH THAT OUR CITIZENS,  AGENTS  OF
   THE  LARGEST  WORLD MARKET, SUPPORTERS OF THE  TRADITION  THAT  CONSIDERS
   EUROPE  AS  THE NEST OF WESTERN CIVILIZATION, CANNOT  ACCEPT  ANY  LONGER
   BEEING FREQUENTLY DELAYED IN AIRPORT DEPARTURES BECAUSE "SLOTS" HAVE BEEN
   RESERVED TO THE NATIONAL AIRLINE, WHICH, QUITE OFTEN, IS NOT USING  THEM!
   THIS IS WHY THE EC COMMISSION IS ACTIVE IN LIBERALISING AIR TRANSPORT.
   THE CITIZENS OF EUROPE
   -  CANNOT  ACCEPT THAT ROAD TRAFFIC IS BECOMING IMPOSSIBLE, EVEN IF  THEY
      KNOW THAT 30% OF THE TRAFFIC IS MADE OUT OF EMPTY RETURN TRUCKS!  THIS
      IS WHY THE EC COMMISSION WANTS TO RATIONALISE ROAD TRANSPORTS.
   -  CANNOT  ACCEPT THE LIMITATION TO GAS AND ELECTRICITY  TRANSIT  THROUGH
      NETWORKS WHICH HAVE TECHNICAL CAPACITY OF TRANSPORT AVAILABLE BUT  ARE
      LINKED TO EXCLUSIVITY CONTRACTS;  THIS IS WHY WE ARE INSISTING ON SOME
      KIND OF FREEDOM OF ACCESS.
   -  CANNOT ACCEPT RAIL GAGES WHICH ARE NOT UNIFORM IN THE CONTINENT;
   -  CANNOT  ACCEPT THAT EVEN SIMPLE ACTIONS LIKE THE USE OF AN  ELECTRICAL
      RASOR CAN BECOME IMPOSSIBLE BY LACK OF NORMALIZATION OF DOMESTIC POWER
      SOCKETS;
   CITIZENS OF EUROPE
   -  CANNOT  ACCEPT  THAT  MOBILE TELEPHONE BECOMES USELESS AS  SOON  AS  A
      NATIONAL BORDER LINE IS CROSSED, EVEN KNOWING THAT THIS BORDER LINE IS
      DISAPPEARING;
   -  CANNOT  ACCEPT DIFFERENT INTERNATIONAL DIALING CODES, DIFFERENT  SPEED
      LIMITS,  AND, PROGRESSIVELY, DIFFERENT CURRENCY UNITS, EVEN  DIFFERENT
      EXTERNAL POLICY, SECURITY AND DEFENSE CONCEPTS!
   WE MUST, ALL OF US, RECOGNIZE THAT FUNDAMENTAL POLITICAL CHANGE IS  UNDER
   WAY.  THE FORCE OF INTEGRATION IS BY FAR BIGGER THAN FORCES OF STABILITY.
   THE  LEADERS OF SOCIETY ARE NOT THOSE WHO, IN A VERY COMPETENT WAY,  TAKE
   CARE  OF  THE  BUSINESS  OF EVERY DAY.  WITH  GREAT  RESPECT,  THOSE  ARE
   ACCOUNTANTS AND NOTARIES.
   TRUE  LEADERS ARE THOSE WHO CAN COMPLEMENT VISIBILITY WITH VISION,  THOSE
   WHO  HAVE  THE CAPACITY - UNFORTUNATELY NOT ALL - OF SEEING WHAT  IS  NOT
   VISIBLE TODAY.
   THIS  IS WHY, IN MY JUDGEMENT, SOME REASONS ADVANCED BY THE PARTISANS  OF
   STABILITY,  DO  NOT CORRESPOND TO THE TRUE ACTUAL PICTURE  AND  RISK  NOT
   BEEING CONSIDERED BY THE SOCIETY.
   IT  IS, IN MY JUDGEMENT, UNACCEPTABLE TO LEAVE THE CONTROL OF  COMMERCIAL
   PRACTICES  OF ELECTRICITY PRODUCERS, TRANSPORTS AND DISTRIBUTORS  TO  THE
   AUTHORITIES  OF  NATIONAL  GOVERNMENTS, BECAUSE,  MORE  OFTEN  THAT  NOT,
   GOVERNMENTS  ARE  MAJOR  SHAREHOLDERS  AND  -  EVEN  WORSE  -  COMPLACENT
   SHAREHOLDERS!
   IT  IS  NOT  REASONABLE FOR THE ELECTRICITY INDUSTRY  TO  COMPLAIN  ABOUT
   INTERDICTION  OF  ACCESS TO CHEAPER RAW MATERIALS, OR  THE  DIVERSITY  OF
   ENVIRONMENTAL,  FISCAL AND FINANCIAL CONDITIONS, AND NOT REFER  THAT  THE
   BEST WAY TO FINISH THOSE HEAVY CONSTRAINTS IS EXACTLY TO OPEN THE MARKETS
   AND LIBERALISE THE NETWORKS!
   IT  IS  VERY MUCH DOUBTFUL TO REPEAT THAT FREE ACCESS  TO  NETWORKS  WILL
   FREEZE INVESTMENT, WHEN WE SEE (CERTAINLY IN A PRELIMINARY STEP) THAT THE
   LARGEST  INVESTMENTS OF THE SECTOR TODAY, ARE LOCATED IN THE ONLY  MARKET
   THAT IS BEEING, IN A CONSIDERABLE WAY, LIBERALISED!
   THERE  IS A SOCIAL AND POLITICAL MOVEMENT IN THE SENSE OF  LIBERALIZATION
   OF  THE LAST CLOSED SECTORS OF THE ECONOMY THAT OVERCOME  OUR  INDIVIDUAL
   WILLS  AND ARE BEING IMPOSED ALL OVER THE WORLD.  WHAT WE ARE DOING  HERE
   IN EUROPE IS NOT AN ISOLATED MOVE, COUNTRIES AS FAR AWAY AS NEW  ZEALAND,
   FOR INSTANCE, ARE FOLLOWING EXACTLY THE SAME TRACK.
   HOWEVER,  IT  WOULD  NOT  BE  HONEST  TO  HIDE  THAT,  IN  THE  COMMUNITY
   ELECTRICITY   SUPPLY  SECTOR,  IMPORTANT  PROGRESS  HAS  BEEN   MADE.  AN
   IMPROVED   SYSTEM  OF  CONSUMER  PRICE  TRANSPARENCY  HAS  ALREADY   BEEN
   ESTABLISHED  AND  WE ARE CONVINCED THAT TRANSPARENCY OF  PRICES  MUST  BE
   EXTENDED TO ALL AREAS OF THE MARKET WHICH ARE NOT FULLY  COMPETITIVE.  AS
   FAR  AS  TRANSPARENCY  OF COSTS IS CONCERNED EVERYTHING  DEPENDS  ON  THE
   DEGREE OF COMPETITION.  IN THE LIMIT, A COMPETITIVE SYSTEM DOES NOT  NEED
   ANY  SYSTEM OF TRANSPARENCY OF COSTS.  THIS IS ENTIRELY  CONSISTENT  WITH
   THE CONCEPT OF A MARKET IN WHICH THE PARTICIPANTS HAVE CHOICE, THE CHOICE
   OF  REMAINING IN A REGULATED ENVIRONMENT OR MAKING  BINDING,  BI-LATERAL,
   ARRANGEMENTS.
   RULES  HAVE BEEN SET FOR THE TRANSIT OF ELECTRICITY ACROSS  GRID  SYSTEMS
   AND  NATIONAL  FRONTIERS.   HERE AGAIN THE ACCENT IS ON  CHOICE,  SUBJECT
   ONLY  TO REASONABLE TECHNICAL AND ECONOMIC CONSTRAINTS.  THE  ACTIVE  CO-
   OPERATION  OF THE SUPPLY INDUSTRY, AFTER SOME INITIAL HESITATIONS, IS  AN
   ENCOURAGING SIGN OF CHANGING ATTITUDES.
   THE  QUESTION  OF  THIRD PARTY ACCESS TO GRID SYSTEMS  WAS  DISCUSSED  AT
   LENGTH AND WITH SOME ANIMATION IN TWO CONSULTATIVE  COMMITTEES.   WHILST,
   NOT  UNEXPECTEDLY,  DIFFERING VIEWPOINTS WERE PUT FORWARD,  A  NUMBER  OF
   ELEMENTS ARE CLEAR.  IT IS CERTAINLY POSSIBLE TO DEVISE A SYSTEM OF THIRD
   PARTY  ACCESS,  AT LEAST AS A RIGHT, EVEN IF NOT YET  AS  AN  OBLIGATION,
   WHILST PRESERVING THE INTEGRITY AND SECURITY OF THE SUPPLY  SYSTEM.  SUCH
   A SYSTEM, OPERATED ON THE BASIS OF THE CHOICE OF CONSUMERS AND PRODUCERS,
   CAN  BE AN INCENTIVE TO IMPROVED ECONOMY AND EFFICIENCY BUT DOES  REQUIRE
   MODIFICATIONS  TO  THE  OPERATIONAL STRUCTURE OF  THE  MARKET  TO  ENABLE
   ARRANGEMENTS  TO  BE  FACILITATED, IN SPECIAL CASES,  FOR  EXAMPLE  AUTO-
   PRODUCERS,  TO  BE  ACCOMODATED.   FURTHERMORE, IF  I  WANT  TO  KEEP  AN
   INDISPUTABLE  PROFILE OF EQUITY, I MUST ACCEPT THAT ALL  THIS  PHILOSOPHY
   INVOLVES AN ELEMENT OF RISK.
   IN AN OPEN MARKET,  RISK IS A NORMAL CONDITION OF LIFE FOR INVESTORS  AND
   WE SHOULD NOT SHRINK FROM THE ACCEPTANCE OF BALANCED RISKS FOR  EVERYONE.
   IT  IS THE TASK OF THE PARTICIPANTS TO DECIDE THE LEVEL OF RISK  THAT  IS
   ACCEPTABLE  TO  THEM  AND  WEIGH ADVANTAGES,  FOR  EXAMPLE  OF  INCREASED
   SECURITY OF SUPPLY, AGAINST INCREASED COSTS.
   NEW  THINKING IS REQUIRED, TO SEPARATE THE ABSOLUTE FROM THE  UNNECESSARY
   AND  TO QUESTION THE CONCEPTS WHICH HAVE LED TO THE  PRESENT  OPERATIONAL
   STRUCTURE OF THE INDUSTRY AND THE NOTION OF THE OBLIGATION TO SUPPLY.
   IN THE EUROPEAN "ELECTRICITE SANS FRONTIERES", THERE IS NO PLACE FOR  ANY
   NATIONAL  OR  EVEN  INTELLECTUAL  FRONTIERS.  THE  "STATUS  QUO"  IS  NOT
   SACROSANCT; WHAT IS NEEDED IS A POSITIVE ATTITUDE TO CHANGE.  HAVING SAID
   THAT,  THE  COMMISSION, FOR ITS PART, WILL TAKE A PRAGMATIC  APPROACH  IN
   FORMULATING  NEW PROPOSALS AFFECTING THE ELECTRICITY  SUPPLY  SECTOR.  WE
   MUST  RECOGNISE THOSE ASPECTS OF THE SECTOR WHICH WORK WELL,  ASSIST  THE
   AIMS OF THE INTERNAL MARKET AND BE CAREFUL NOT TO THROW OUT THE BABY WITH
   THE BATH WATER!
   WHAT  I CAN SAY ABOUT THE WAY IN WHICH THE COMMISSION IS APPROACHING  THE
   FORMULATION  OF  NEW PROPOSALS IS THAT WE ARE NOT AFRAID OF THE  WORD  OR
   CONCEPT  "COMPETITION"  AND WE ARE SUSPICIOUS OF THE  WORDS  OR  CONCEPTS
   "MONOPOLY",  " EXCLUSIVE RIGHTS", "VERTICAL CONTRACTS"  AND  "EXCLUSIVITY
   CLAUSES".  WE ARE SEEKING A HARMONISED COMMUNITY SITUATION WHICH  FAVOURS
   THE  ECONOMIC OPTIMISATION OF SUPPLY IN THE INTERESTS OF  THE  CONSUMERS.
   WE  ARE  PLEASED  TO NOTE THAT, IN MANY  COMMUNITY  COUNTRIES,  THERE  IS
   ALREADY  EVIDENCE  OF NEW THINKING ON THE OPERATIONAL STRUCTURE  OF  YOUR
   INDUSTRY  AND  ON RELATIONSHIPS WITH ITS CUSTOMERS.  I AM SURE  THAT  THE
   PRESENTATIONS AND DEBATES IN THIS CONGRESS WILL PROVIDE FURTHER FOOD  FOR
   THOUGHT AND REFLECTION.
   THE  COMMISSION'S  DECLARED INTENTION TO REMOVE MONOPOLIES WHICH  ARE  IN
   CONFLICT WITH THE DEVELOPMENT OF THE INTERNAL MARKET IS, OF COURSE,  WELL
   KNOWN.  AN EXCELLENT EXAMPLE OF CHANGING APPROACHES BROUGHT ABOUT BY THIS
   POLICY IS THAT IN THE COMMISSION'S INTENTION TO REMOVE MONOPOLIES FOR THE
   IMPORT  AND  EXPORT  OF  ELECTRICITY.  A NUMBER  OF  MEMBER  STATES  WERE
   IDENTIFIED  AS HAVING SUCH LEGAL MONOPOLIES.  IT IS VERY HELPFUL  TO  SEE
   THAT  ALREADY  ONE  MEMBER  STATE, PORTUGAL HAS  DECIDED  TO  REVISE  ITS
   LEGISLATION AND REMOVE THESE OBSTACLES TO EEC PRINCIPLES.  IT WILL NOW BE
   POSSIBLE TO EXCLUDE PORTUGAL FROM THE LEGAL INICIATIVE BY THE COMMISSION.
   INDEED, PORTUGAL HAS GONE FURTHER BY INTRODUCING CHANGES IN THE STRUCTURE
   OF ITS ELECTRICITY SUPPLY INDUSTRY WHICH CONTRIBUTE TO THE CREATION OF  A
   MORE  OPEN MARKET AND THE MORE RATIONAL DIVISION OF RESPONSIBILITIES  AND
   FUNCTIONS.  YOU  CAN UNDERSTAND HOW THIS MOVE IS  PARTICULARLY  IMPORTANT
   FOR ME."
   (...)"THE  CURRENT  INTERNATIONAL POLITICAL AND  SCIENTIFIC  INTEREST  IN
   GLOBAL  WARMING HAS LED TO A FOCUS ON THE POSSIBILITIES OF  LIMITING  CO2
   EMISSIONS.  IN  THIS CONTEXT, THE COUNCIL AGREED IN OCTOBER LAST TO  TAKE
   ACTION  AIMING  AT THE STABILISATION OF TOTAL CO2 EMISSIONS  BY  2000  AT
   1990  LEVELS.  THE  POSSIBILITIES OF THE USE OF FISCAL MEASURE  IS  BEING
   CONSIDERED;   THE  COMMISSION  HAS  EXPRESSED  ITSELF  IN  FAVOUR  OF   A
   COMBINATION  OF  A  CO2 TAX AND AN ENERGY TAX.  THIS  WORK  IS  STILL  IN
   PROGRESS  BUT  IT  IS  ALREADY CLEAR THAT THE  BURDEN  OF  ACHIEVING  THE
   STABILISATION  OBJECTIVE WOULD FALL ON THE TRANSPORT AND THE  ELECTRICITY
   SECTORS.    HERE  AGAIN,  IT MUST BE SAID THAT ENERGY SAVING  WILL  BE  A
   PRINCIPAL TOOL IN THE STABILISATION OF CO2 EMISSIONS.
   WE  RECOGNISE THAT THIS ISSUE IS A GLOBAL ONE WHICH REQUIRES A  CONCERTED
   APPROACH, PARTICULARLY BY THE INDUSTRIALISED COUNTRIES.  IT REMAINS TO BE
   SEEN  WHETHER  A  CONSENSUS ON COMPARABLE EFFORTS  CAN  BE  ACHIEVED.  AT
   PRESENT, THE STRATEGIES BEING ADOPTED BY SOME COUNTRIES, SUCH AS THE USA,
   GIVE RISE TO SOME DOUBTS".
   (...)"THE INTEGRATED, HIGH VOLTAGE GRID SYSTEM OF THE COMMUNITY COUNTRIES
   IS,  OF  COURSE, INEXTRICABLY LINKED WITH THE  SYSTEMS  OF  NON-COMMUNITY
   COUNTRIES.  WE   WILL  BE  ENDEAVOURING  TO  OBTAIN  RIGHTS  OF   TRANSIT
   COMPARABLE WITH THOSE IN THE NEW TRANSIT DIRECTIVE IN THESE  INTER-LINKED
   COUNTRIES  IN  ORDER  TO  MAXIMISE  THE  PRACTICAL  UTILITY  OF   TRANSIT
   OPPORTUNITIES IN THE INTERESTS OF THE COMMUNITY.  STEPS IN THIS DIRECTION
   HAVE  ALREADY BEEN TAKEN WITH THE EFTA COUNTRIES AND WITH YUGOSLAVIA  AND
   THIS  APPROACH WILL BE TAKEN WITH THE EASTERN EUROPEAN COUNTRIES  IN  DUE
   TIME.  WE  BELIEVE THAT THIS APPROACH WILL CONTRIBUTE BOTH  TO  INCREASED
   ELECTRICITY EXCHANGES AND TO FURTHER OPTIMISATION OF THE SYSTEMS.  BUT  I
   KNOW IT WILL NOT BE EASY!
   IN ORDER TO ENSURE AN OPTIMUM LEVEL OF ELECTRICITY EXCHANGES, AN ADEQUATE
   INFRASTRUCTURE  IS  ESSENTIAL.  THE COUNCIL OF MINISTERS  HAS  RECOGNISED
   THIS, WITH THE ALLOCATION OF SOME OF THE COMMUNITY'S STRUCTURAL FUNDS  TO
   THE DEVELOPMENT OF INFRASTRUCTURE.  WE ARE NOW BUILDING ON THE ACCEPTANCE
   OF  THIS PRINCIPLE BY PROPOSING MEASURES TO IDENTIFY KEY  INTERCONNECTION
   PROJECTS AND TO SUPPORT FEASIBILITY AND OTHER RELATED STUDIES, AS WELL AS
   POSSIBLY LABELLING THEM AS OF SPECIAL COMMUNITY INTEREST.
   THE INTEGRATED GRID SYSTEM IN THE COMMUNITY IS THE PRODUCT OF TECHNOLOGY,
   MANAGEMENT  AND  OPERATION  SKILLS.  ADVANCED  AS  THESE  ARE,  THE  FULL
   ECONOMIC AND SECURITY BENEFITS TO BE OBTAINED FROM AN INCREASINGLY  LARGE
   NETWORK CAN ONLY BE OBTAINED BY THE USE OF EVEN MORE ADVANCED  TECHNOLOGY
   AND  THE  FURTHER  DEVELOPMENT OF SKILLS.  IT IS UP TO  THE  INDUSTRY  TO
   RESPOND AND THE INDUSTRY HAS THE CAPACITY TO RESPOND.
   FOR OUR PART WE WILL BE CAUTIOUS IN  THE MOVE FOR MORE COMPETITION NOT TO
   ENDANGER  THE  HIGH  QUALITY OF THE PRESENT  SERVICE,  BY  ACCEPTING  THE
   INTRODUCTION OF  SAFETY NETS WHEREVER NEEDED TO AVOID INSTABILITY OF  THE
NETWORKS."

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