Turkey and the EU

Introduction 11

Chapter 1 Central and Eastern Europe’s Dependence on Russian Gas, Western CIS Transit States and the Quest for Diversifi cation through the Southern Corridor 19
1. Introduction 19
2. Market changes in Europe and Gazprom, with special attention to the pricing and the CEE region 20
3. Gas demand and production in Central and Eastern Europe 25
3.1 Role of gas in primary energy consumption in Central and Eastern European countries 25
3.2 Gas demand 26
3.3 Internal gas production in Central and Eastern Europe, with special attention to unconventional gas 28
4. Transit through the western CIS states and Central and Eastern Europe 29
4.1 Bypass pipelines and their effect on transit 31
5. The role of Russian gas in Central and Eastern European countries 35
6. Diversification projects in the Southern Corridor 50
7. Conclusions 56

Chapter 2 Norms and Interests in Turkey’s Southern Corridor Policy 61
1. Changes in Western energy policies regarding natural gas 62
2. Weakening U.S. commitment to global gas supply security 62
3. European demand concerns 63
4. Arab Spring and growing tensions in the Middle East 65
5. From geopolitics to pragmatism – the new context of the Southern Corridor 66
6. EU-Turkish relations and the issue of Turkish gas transit 72
7. Conclusion 73

Chapter 3 Turkey’s Energy Policy and the EU’s Energy Demand 75
1. Turkey’s energy policy 76
2. Geopolitical considerations 83
3. The Nabucco dilemma 84
4. The Challenge of Reclaiming Impetus 89

Chapter 4 Energy as a Significant Material Factor Shaping Turkey’s Foreign Policy Preferences towards the South Caucasus: What Role for Turkey as an Energy Transit State from Caspian to Europe? 93
1. Introduction 93
2. Emergence of Energy in the Caucasus and Central Asian Politics 95
3. Turkey and the Politics of Energy Politics: Progress in Relations with Azerbaijan 98
4. The role for Turkey as an Energy Transit Country from the Caspian Basin to Europe? 111
5. Conclusion 119


Chapter 5 The EU Transport Policy and the Enlargement Process 121
1. Introduction 121
2. Early plans for motorway interconnections between Europe and Turkey 122
3. From early EU ideas to the first common policy for transport in 1992 123
4. Extending TEN-T: the system of Pan-European corridors 124
5. Extension of the Pan-European corridors as the TINA Network 1999 126
6. Time to decide: white paper for transport policy in 2001 128
7. Re-examination of the TEN7T principles (2004) and further extensions 129
8. Re-examination of the white paper (2006): road haulage strikes back? 131
9. The 2011 white paper on EU Transport Policy 132
10. 2009 – 2013: revision of the TEN7T network 135
11. Summary 136

Apendix A. The transport policy goals of the EU’s policies of the last two decades, categorized by levels 137

Chapter 6 Turkish Transport Policy and the EU: Areas of Cooperation and Conflict 139
1. Introduction 139
2. Overview of transport infrastructure in Turkey 141
2.1 Road Transport 142
2.2 Railway Transport 145
2.3 Maritime Transport 148
2.4 Air Transport 150
3. Identifying areas of cooperation between Turkey and the EU: a theoretical framework 152
4. EU-Turkey transportation chapter: liberalization and intermodality 155
4.1 Liberalization 156
4.1.1 Railway Liberalization – Distributive Impact 156
4.1.2 Liberalization of Road Haulage – Redistributive Impact 160
4.2 Intermodality in Turkish Transport 164
4.2.3 Road-Rail 166
4.2.4 Road-Marine Transport 167
5. Conclusion 167

Chapter 7 The Role of Competition Policy in the Enlargement of the EU 171
1. Introduction 171
2. Competition policy and EU enlargement 173
2.1 Competition in the EU acquis 173
2.1.1 Necessary legislative framework 175
2.1.1.1 Pre-accession contractual frameworks 175
2.1.1.2 Examples of specific issues assessed in the negotiation process 176
2.1.2 An adequate administrative capacity 179
2.1.2.1 Pre-accession contractual frameworks 180
2.1.2.2 Examples of specific issues assessed in the negotiation process 181
2.1.3 A credible enforcement record 181
2.1.3.1 Examples of specific issues assessed in the negotiation process 183
2.2 The impact of competition policy beyond the competition chapter 186
3. Conclusion 188

Chapter 8 The Incomplete Transformation of Institutions of Economic Policy: From Clientelism to Competition? 189
1. Introduction 189
2. Institutions, delegation and rules vs. discretion 190
2.1 Why delegation? 192
2.2 Delegation and clientelism 194
3. Economic institutions in Turkey and their (incomplete?) transformation 196
3.1 The pre-crisis period 196
3.2 Institutional change in the last decade 199
3.3 The central role of competition policy 201
4. An assessment 204
4.1 The view from the European Commission’s progress reports 204
4.2 Independence, transparency and accountability 205
5. Concluding remarks 206

Chapter 9 Afterword 209