This article analyses the reform process in the European and the German natural gas sector. Competition in the industry and intra-European trade have been underdeveloped thus far. We argue that the European gas pipelines are a monopolistic bottleneck that require some form of access regulation, e.g. in the form of an Entry-Exit System. We discuss how regulation should be implemented at the European level and, subsequently, in Germany. We conclude that the European Gas Directive 2003/55/EC and the new Energy Law in Germany offer a good point of departure for further reforms towards an integrated European market for natural gas. Copyright Verein für Socialpolitik und Blackwell Publishers Ltd, 2006
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