27 June 2007

Speech Kroes: No question of downgrading competition policy

Speaking before European Parliaments ECON Committee Competition Commissioner Neelie Kroes told MEPs she was not worried by the decision by EU leaders to move the commitment to free and undistorted competition from the objectives of the draft constitution into a protocol to the newly proposed reform treaty. She stressed that the protocol was legally binding, and that the same rules would continue to apply as now.

Ms Kroes, who was presenting the Commission’s annual Competition Report for 2006 to the committee, said: “The protocol to the treaty is a legally binding confirmation that the system of undistorted competition is part of the internal market. Of course, competition is not an end in itself, but it is one of the best means to create conditions for growth and jobs. Putting it in a protocol on the internal market clarifies that one cannot exist without the other. That is a fact, and the competition rules which have served citizens so well over the last fifty years remain in force, and the Commission will continue to enforce them firmly and fairly.”

MEPs' interpretations differ

Ieke van den Burg (PES, NL) said she appreciated this reaction: “You are right, competition is not an end in itself; it is a tool, and I fully support the Commission using competition as an instrument for the internal market.”

Jonathan Evans (EPP-ED, UK) said it was a gloomy day, and was worried by President Sarkozy’s comments, as he put it, “that competition has done nothing for Europe, that protectionism is no longer taboo, and that he favours European champions.” Gunnar Hökmark (EPP-ED, SE) said “It seems that competition is something everybody wants until they get it.” This was the first time in 10 or 20 years, he said, that the credibility of competition policy was being questioned in this way. He recommended a strict enforcement of state aid rules, with a view to decreasing it, ensuring cross-border mergers were made possible and following closely the work of the Intergovernmental Conference.

Furniture moved, house remains

Ms Kroes said she could agree on those three points but disagreed on the interpretation of the summit’s conclusions: “They have moved the furniture round, but the house is still there. The protocol is of equivalent status to the treaty. [...] You can be annoyed, but there is no need to be worried. Competition policy is an integral part of the concept of the internal market. The rules and the role of the Commission have been fully safeguarded. There is no question of downgrading.” As for champions, Ms Kroes said she wanted global champions, preferably based in Europe.

Full speech Kroes
Annual report 2006 Part 1, Part 2

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