Germany's Glos favours European grid union-paper

FRANKFURT, April 28 (Reuters) - German Economy Minister Michael Glos told Frankfurter Allgemeine Zeitung newspaper that unifying all European power grids could foster competition in the sector.

RWE (RWEG.DE: Quote, Profile, Research), Germany's largest power producer, has proposed setting up a pan European power grid in response to plans announced in February by competitor E.ON EONG.DE to sell off its long-distance power grid.

E.ON had proposed that German utilities could merge their long-distance, high-voltage power grid.

"Whether a private German network group makes sense is first and foremost an economic decision and therefore upto the companies involved to decide," Glos said, according to the newspaper.

"A European solution would be better suited to promote competition," he said. (Reporting by Peter Dinkloh)