LESSONS OF A CRISIS AVERTED.

The gas dispute between Russia and Ukraine boils down to a tussle between a supplier and transit operator, neither of which are members of the EU. But, like it or not, the European Union is directly involved. EU officials - Council and Commission first and foremost - responded accordingly. As soon as the dispute erupted when the Russians started cutting off gas supplies to Ukraine, with knock-on consequences for EU countries, they began urging both sides to reach an amicable settlement whilst examining what role might be played by EU mechanisms.

Two conclusions can be drawn from the dispute, which threatened to develop into a full-blown crisis before being settled by the January 4 agreement between Russia and the Ukraine.

Firstly, an EU energy policy is more necessary than ever, focusing on a diversification of suppliers and types of energy. A European-wide strategy has been on the back burner since the late 1970s owing to the member states' reluctance to relinquish sovereignty in this strategic area. Will the wake-up call of January 1 have a lasting effect? Some indication may be drawn from the reception the member states give the Green Paper which the European Commission is due to present - at their request - in March, hopefully including concrete guidelines for a European...