The run up to the 2007 full-market opening in Europe will continue to feed consolidation momentum in the EU.

The run up to the 2007 full-market opening in Europe will continue to feed consolidation momentum in the EU. Around the globe, increased competition is driving companies to turn to M&A activities to deliver growth horizontally and vertically. High wholesale power, gas and carbon prices also are creating new platforms for deal activity, pushing up generation asset values and bolstering the rationale for deal prices. As we look ahead, we can expect to see greater integration of upstream and downstream entities and more moves by the mega-players. The attitude of the competition authorities will be critical to future deals.

Companies are not looking for more money from the government. They are looking for more certain framework.

The electricity and gas M&A activity surpassed the exceptional momentum that had already built up and is continuing to gain speed in 2006. We are seeing a new era of 'blockbuster deals.' Companies are consolidating and extending their regional footprints to attain non-organic growth in a tight sector facing high fuel prices and security of supply concerns. We are also seeing greater involvement of financial players in the market with the rise of infrastructure funds creating a new asset class.

Everybody is looking at Vince Young and Reggie Bush, but to me the game will be won up front by the offensive and defensive lines.

This will be a major success for EU foreign policy if it can lead to a proper political dialogue on the causes which have led to some of the recent violence.