17 September 2012

Almunia: Competition control is one of the most important factors to achieve the ultimate goal of establishing a genuine Single Market

In his speech at the CINDER (International Centre for Registration Law) Congress in Amsterdam, Almunia talked about some of the measures adopted to tackle the present situation, put Europe back on the road to recovery and lay the foundations for sustainable growth in the long term. He gave his views on the pivotal role of Europe’s Single Market as a platform for growth. 

He then went on to talk about competition policy:

"It is my duty as Commissioner in charge of competition policy to guarantee that companies and organisations do not privately rebuild the barriers that European governments have committed to tear down. My responsibility also extends to some decisions taken by EU governments. The Treaty gives to the Commission exclusive competence over the control of State Aid.

We have to make sure that State subsidies and other public policies do not give an unfair advantage to companies and do not distort competition in the internal market. Competition policy supports efficiency and the creation of economic value. It forces players to win on merit and not on privileges."

"As my predecessors in this position have done before me, I am trying to use all the instruments at my disposal to create the best environment for growth in Europe and help to complete the Single Market. Based on my experience, today I am even more convinced than the day I took over that competition on the merits is a necessary condition for a sustainable pattern of growth, and to tap the full benefits of a Single Market of 500 million consumers.

However, there are claims that competition enforcement should be softened because of the crisis. Some argue that the harsh conditions of the markets, and in particular the dynamism shown by the biggest emerging economies, need to be accommodated with a more lenient approach from my side. I strongly disagree.

We must urgently create the conditions that allow our companies and every economic player to consider the whole of the EU as their own playground and to be free to do business in every corner of the Union without barriers and undue restrictions.

The industrial policy that Europe needs must be consistent – and not in contradiction – with the principles of our Single Market and with our common competition-policy rules. A modern industrial policy in Europe cannot be based on the same wrong assumptions of the "picking winners" strategy that failed in the second half of last century. A company that is unable to compete freely in the Single Market will not succeed in the world markets. Only a pan-European marketplace can allow our companies to reach the size they need to take on their global competitors. And a keen and well-regulated competition environment on European scale can make them strong, efficient, and innovative enough."

"Regulations and professional orders can raise concerns for competition when they are not proportionate or are used to limit access to a profession and curb the freedom of professionals. So, there are still gaps in the internal market and in the competitive conditions for the main liberal professions; the key restrictions to competition being fixed or recommended prices, advertising regulations, entry requirements, and reserved rights. Usually, these issues are handled by the competition authorities in each country of the EU, given the national scope of regulations and practices. We have intervened in this domain at EU level in very few cases.

At any rate, the Commission and national authorities are fully coordinated within the European Competition Network, taking into account that the legal basis for our enforcement are the same articles of the Treaty, and we regularly discuss with the 27 national authorities about their decisions and investigations."

"Competition control is a very powerful and efficient means to leverage the potential of the Single Market for growth, because – unlike other policies – its effects are immediate and it will cost nothing to the taxpayer. Competition policy can also bring lasting effects. The power of deterrence of our sanctions does change firms’ behaviour and improves the business environment for all.

In addition, the control of State aid, aimed to preserve a level playing field in the internal market, has taken on a special significance. In these times of adjustments and austerity, it is also a very useful tool reconcile a policy of fiscal consolidation with a sound strategy for growth.

Finally, the action of competition authorities brings fairness to the markets and to society at large, because it protects consumers and firms regardless of the size and market power of the infringers."

Full speech

© European Commission