Energy, innovation to dominate EU summit

The European Union leaders on Friday will focus on its energy ties with Russia, and how to stimulate innovation to boost the 25-member bloc's competitiveness.

Energy will be a hot topic during an informal EU summit in the southern Finnish skiing resort town of Lahti, where Russian President Vladimir Putin has also been invited to participate.

EU states worry about their energy security, and fear that Moscow will use energy as a political weapon since Russia supplies a quarter of Europe's gas and oil.

The EU has made it clear that it wants to formulate new principles of energy cooperation with the Kremlin, which is a crucial part of the bloc's energy security strategy.

The EU has been trying to persuade Russia to ratify an international energy charter, which regulates transit and investment in the energy sector, and allows for greater market competition from foreign companies.

Moscow, however, reiterated its opposition to the charter on Thursday.

"If Russia is not prepared to ratify the charter in its current form, it's time to start changing wordings we cannot accept," said Sergei Yastrzhembsky, Putin's aide in charge of ties with the EU.

"There are no other options," he said.

Also on Thursday, a plan was approved by the European Commission to cut EU energy consumptions by 20 percent by 2020.

The plan for more efficiency in buildings, cars, power generators and appliances comes, as EU worries have grown, after Moscow briefly cut off gas supplies to Ukraine earlier this year, causing disruptions in gas supplies to some eastern EU member states as well.

"It is important for the EU to speak with one voice, stressing our interdependence in terms of energy," Finnish Prime Minister Matti Vanhanen said in a statement.

"Russia needs our markets, we need its energy. But this relationship must be built on openness and reciprocity. The EU market is open to Russia but we expect the same openness from them," said Vanhanen, whose country currently holds the EU presidency.

European companies can provide the much needed investment in Russia's energy sector, and advanced European technology can help boost energy efficiency in Russia, he argued.

Official statistics show that the EU will import 70 percent of its energy in 2030 compared to the 50 percent today.

Finland is also using the Lahti summit to work out a better approach toward a more innovative and competitive organization.

Commenting on the meeting's agenda, Vanhanen said on Thursday that the EU needs "a more company-driven innovation policy, and a dismantling of barriers to innovation."

"A critical look at market conditions is required if we are to find ways to tap Europe's innovative potential," he said.

Europe should take several "practical steps," including a more efficient policy on intellectual property rights, consultation with business on European standards, and creation of platforms that will bring academia, research and business together, Vanhanen said.

The EU's executive European Commission said earlier that one of the major obstacles in coming up with innovative results is the lack of cooperation between European universities, research institutes and the industry.

Vanhanen also suggested that EU states should increase public funding for innovation.

The informal summit will also discuss energy ties with other countries such as Ukraine, and try to reach agreements on a more coherent internal and external energy policy.

The summit will touch on other topics such as the recent murder of Russian journalist Anna Politkovskaya, the current crisis between Russia and Georgia, illegal immigration, and the situation in Darfur.

Source: Xinhua