The European Union and seven Balkan countries Tuesday signed a landmark treaty on establishing a unified Energy Community in southeast Europe in line with EU energy legislation.

The treaty was signed by British Trade and Industry Minister Alan Johnson on behalf of the EU, and ministers from Albania, Bosnia, Bulgaria, Croatia, Macedonia, Romania, and Serbia-Montenegro, as well as a United Nations representative on behalf of Kosovo.

Greek Prime Minister Costas Karamanlis welcomed the treaty, calling it a milestone in the course of regional integration and a harbinger of new relations, as well as the springboard for wider economic cooperation.

The treaty was designed to create a single regulatory framework for trading powers in the region in hopes of boosting energy investment.

A series of planned natural gas pipelines connecting the entire region are expected to help boost investment in the energy sector.

Andris Piebalgs, EU Commissioner for energy, said the treaty would lead to the improvement of energy supply safety for the region and the EU, and create a common and firm environment for investment in energy production units and transport networks.

Erhard Busek, EU Stability Pact special coordinator, said that 12.5 billion euros (some 14.9 billion US dollars) would be required in the coming years for investment in electricity production units in the region, and another 8 billion euros (some 9.5 billion dollars) for power transportation and distribution networks.

However, Turkey, which is seen as a vital participant in the treaty for its huge energy consumption, refused to sign the accord reportedly due to disagreements on environmental issues.

According to the treaty, the Energy Community's regulatory and electricity board will be based in the Greek capital of Athens, while its technical and information center will be based in Sofia, Bulgaria. Its secretariat will be headquartered in Vienna, Austria.

Britain currently holds the rotating presidency of the EU.

Source: Xinhua