There are good reasons for a representative of VEAG to report on the power industry of the countries which have applied to join the EU. The new German federal states were only connected to the Western European UCTE grid in September 1995, just a month ahead of our Eastern European neighbours. Until then, East Germany's electricity industry developed in a similar way like its East European neighbours over a period of 40 years. VEAG's position was comparable in terms of technical facilities and organization with the utilities in the other post-socialist countries, even if the currency union and the re-unification created better framework conditions. The paper describes the present situation and the near future with particular attention to VEAG's neighbours in Central Europe, Poland and the Czech Republic. An excursion is also made into the development of the European transmission grid. East Germany's biggest power company, VEAG, went through all the phases of transformation from a centrally-controlled company operating in a planned economy to a market economy-based organization (Figure 1). In particular this involved adapting to EU regulations, especially with regard to environmental legislation, but also the liberalization directives, quickly implemented with typical German thoroughness, which practically dragged VEAG into a financial abyss. Backed by a unique investment programme anywhere in the world, VEAG made a massive leap forward. The most state-of the-art-power plants with high efficiencies and an efficient transmission grid that satisfies the highest demands in terms of guaranteed supply were created. This takes time, not to mention the vast amounts of money involved. Our colleagues in the neighbouring countries of East Germany as well as the politicians have to accept this. The five Central European candidates for the next EU enlargement - Poland, the Czech Republic, Hungary, Estonia and Slovenia are hoping to complete the negotiations next year in order to be able to join the EU from 2003. For the other Baltic states - Latvia, Lithuania and also Slovakia - the earliest possible date is 2005, and it will take even longer for Rumania and Bulgaria. Before they can join the EU, 80,000 pages of EU legislation need to be written, accepted and also implemented. A particular challenge in this respect is the implementation of environmental legislation. Following an agreement with the EU Environment Minister on 22nd June 2000, the waste gas limits of the law applicable in Germany will be tightened and will also cover old plants. The fact that these agreements have to be implemented in the applicant countries with transitional measures and a certain amount of "feeling our way in the dark" goes without saying.
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