We need to help the EGM London coal team to understand the implications of 
Loyola's pronouncement and the draft legislat. which is promised. You are 
both already in touch with the EIM London steel team to explore implications 
of ECSC termination, US steel anti-dumping measures, the Arbed/ Usinor merger 
etc. Please contact Paul D to co-ordinate your briefing of the coal team. In 
both cases Lisa Yoho in Houston should be kept informed.

Lisa: Brendan and Nailia, working with me in the Brussels office, are also 
endeavouring to answer questions from the London freight team about EU 
freight market/ rail liberalisation. If you have suggestions for further 
co-ordination please let me know. You can call me on +32 2 535 7831 in 
Brussels or mobile no. +44 7768 233773.

---------------------- Forwarded by Peter Styles/LON/ECT on 06/27/2001 02:25 
PM ---------------------------


EEMF <EEMF@edelman.com> on 06/27/2001 10:46:48 AM
To: <nailia.dindarova@enron.com>, 
cc:  

Subject: EWI: DE PALACIO BACKS CONSTANT COAL PRODUCTION


EWI: Early Warning Information

DE PALACIO BACKS CONSTANT COAL PRODUCTION
European Energy and Transport Commissioner Loyola de Palacio has confirmed
her commitment to creating a basic level of fossil fuel production
(including coal) to help guarantee security of supplies in Europe. Mrs de
Palacio is current preparing a legislative proposal with a view planning
coal production after the ECSC Treaty expires, in July 2002. She said "coal
continues to be one of the main sources of energy and remains at the centre
of our concerns. As well as being one of the native resources coal also
contributes to regional cohesion.". Coal subsidies are due to be phased out
by 2010, when all countries are supposed achieve a drastic cut in their
greenhouse gas emissions, in line with the Kyoto Protocol provisions. "
However, it is vital to have more than a strategic reserve, which mean a
proportion of the infrastructure, the professional skills and the techno
-logical experience," she stressed. In the coming weeks she plans to table a
proposal to create a basic level of subsidised primary energies, comprising
coal and renewable sources of energy: "the aim is to strengthen the security
of supply situation in Europe " she explained, adding that "its use has to
be in keeping with environmental protection considerations ". She
underscored the importance of research and technological development for
promo-ting less environmentally hostile production activities.
Source:  European Report

EEMF Team
eemf@edelman.com
Tel: +32 2 227 61 83