GERMANY: Germany, Spain to push for European constitution, deny relations tarnished after German bid for Spanish energy supplier

Record ID: 872635

  • Title: GERMANY: Germany, Spain to push for European constitution, deny relations tarnished after German bid for Spanish energy supplier
  • Date: 21st April 2006
  • Summary: CLOSE OF ZAPATERO LISTENING
  • Embargoed: 6th May 2006 13:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: International Relations
  • Reuters ID: LVA9M4S0F5QTM38J9AIWLGC5Z68M
  • Aspect Ratio:
  • Story Text: Germany and Spain have on Thursday (April 20) reiterated their demands that progress be made on the European treaty, calling it an "important step towards the integration of Europe."
    German Chancellor Angela Merkel said during a joint news conference with Spanish Prime Minister Jose Luis Rodriguez Zapatero in Berlin that "we both believe the European treaty is a further important step for Europe in order to improve and intensify European integration."
    Merkel added that "Europe needs progress and needs better institutional conditions and that's why both countries will work towards the progress of this treaty process."
    Her Spanish colleague said "my government will work very intensively, in close cooperation with the German chancellor and the German government, to make use of the very first chance we get to continue to work on the European treaty in order to set new goals for the European agenda."
    The two government leaders brushed aside speculation that an offer by German energy supplied E.ON for Spanish electricty company Endesa had tarnished relations between their countries -- although Merkel said there was "a difference in opinion on one issue."
    "In Germany, E.ON as a private company has made an offer for a Spanish company and I believe this offer was made according to the rules and needs to be dealt with accordingly."
    "But this does in no way tarnish our political relations. We have a friendly, open discussion which is not at all influenced by this issue," Merkel said.
    The Spanish government has been hostile to the E.ON bid, saying the energy sector is strategic and that it wants to ensure the security of supply in Spain, which imports 80 percent of its energy needs.
    E.ON handed over more documents on its bid for Endesa to Spain's energy regulator on Wednesday and said the merger would improve security of energy supply in the country.
    The Spanish government, which approved a rival bid for Endesa from Barcelona-based Gas Natural, widened the powers of the regulator so it would rule on E.ON's bid -- a move seen as an attempt to the block the 29-billion-euro (35.7 billion U.S. Dollar) offer.
    Gas Natural's offer is currently worth around 22 billion euros but is expected to be increased. Its bid has passed all of its regulatory stages but has been blocked by a commercial court pending investigation into an alleged breach of European Union takeover regulations.
    The regulator's final ruling on E.ON's bid is not expected for at least another month, while the European Commission will give its ruling by April
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