2001 Warning  to the 

European Commission of 

the coming Energy, Financial and Ideological CRISES 

"The Coal and Steel Community initiated by Robert Schuman helped resolve internal energy problems, the cause of earlier hostilities. Since the 1950s European states have suffered from increasingly severe external problems without taking Community action. The 1970s were the decade of a disastrous energy crisis. After the 11 September 2001 terror attacks in the USA, the risks are even greater today. Energy imports are surging, while our own energy sources are depleting fast. Yet the European population's increased vulnerability vies with European governments' complacency and amnesia. Policy incoherence of the EU15 will multiply with the adhesion of the candidate countries. …"

"As distinct from a reaction policy after the next crisis that will cost a great deal mind and money, all participants can immediately benefit from creating an Energy Community solution. The EU experience proves this. "

"Despite the increasingly serious crises that Europe has faced and the increasing costs for our populations, European governments have shown an extraordinary complacency. Previous energy crises nearly brought about the collapse of the European economy. Recent events make it more than probable that Europe will face similar crises in the future. It is the duty and responsibility of the European Commission, the European Parliament and other European institutions to warn the European people and their governments of these dangers so that Community decisions can be made and a common policy can be created. ..."

    2. FINANCIAL CRISIS

"Posted oil prices of $1.80 a barrel in 1970, rose to $2.90 in early 1973 but with the application of the ‘oil weapon’ in the October war, the price hit $11.65 by the end of the year. World petroleum earnings went up from $23 billion in 1972 to $140 billion in 1977. The UK Stock Market crashed by as much as the 1929 crash but twice as fast. … With the first shock, oil costs were increasing at a rate of more than an extra trillion dollars a decade. But in 1979 the second severe oil shock struck, quadrupling prices again: spot prices hit the $40 to $50 range. It peaked in 1983 at $53…. "

"Plans for European monetary union (Werner Plan) were abandoned for two decades at enormous social, economic and political cost. Europe’s vigorous growth and its huge foreign currency reserves – the largest in the world – were wiped out. .."

"The lack of stabilizing oil and gas prices and fair trade has probably cost trillions of dollars to the economy of the European Union. This energy non-policy may create economic losses greater than the gains we have seen through beneficial policies such as the single market. Any policy, even moderately successful, that could stabilize fair prices against speculation, pillage policies or unwarranted foreign policy intrusion, is likely to be of outstanding value to Europe’s citizens. This overview does not even consider the imperative of providing energy savings and an environment-friendly energy policy against global warming. A profligate energy policy can wreak untold damage on the environment and our children’s heritage. Whereas a wisely conceived energy-saving and ecology policy is a real jobs- and prosperity-creating instrument." 

3. IDEOLOGICAL CRISIS: GLOBALIZED PIRACY

"Thirdly, prices of our most precious raw materials are dangerously vulnerable to  anonymous, off-shore, financial leverage and speculation beyond the effective rule of law. " 

"Adding $25 to every barrel of oil or gas equivalent dispossesses the EU of around $100 billion per annum extra for the same goods. ... Is it true that even democratic states make a multibillion dollar grab at the citizen's wealth with no democratic control? ... While the cartel of oil states, OPEC, continually complains at the supply-side indiscipline of its members, today the EU is paying more than double. ... Is this a fitting way to manage the world economy of the twenty-first century? Is 'price volatility' just unauthorized, forced redistribution, leveraged 'free (for some) trade' or the slippery slope to a MEGA-DISASTER? "  

Extracts from the 2001 Schuman Project Report to the European Commission: European Union's Trillion Dollar Disaster -- Energy Non-policy