Abstract
Despite several attempts at completion, the EU's internal electricity market remains fractured into weakly interconnected submarkets. With a recently published initiative to extend cross-border power lines, the European Commission is striving for better market integration and more competition. Recent changes in Germany's energy policy seem to complement this initiative, increasing the pressure for a more interconnected Europe. They will have a deep impact on the European energy system and make a European response imperative. Yet, given the fragmentation within the European electricity market, their effect will probably be the opposite.
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