Brussels, 10/02/2012 (Agence Europe) - Keeping an open common market in Europe that is competitive and dynamic, preventing any type of abuse and restricting state aid to areas where it can encourage innovation and industrial competitiveness is the mantra outlined by EU Competition Commissioner Joaquin Almunia in a speech in Paris on Friday on “Industrial Policy and Competition Policy - Quo Vadis Europa.”
At a time of financial crisis, lack-lustre growth and the fear of companies leaving Europe to set up in emerging economies, there is a need to address the question of getting industry moving in Europe, and Almunia said that the EU's competition policy aimed to do exactly that by making the market stronger and more dynamic. He said that the proper functioning of the market must not be undermined by government measures or anti-competitive behaviour by private companies. The financial industry must be properly regulated, but industry and other areas should experience limited state intervention, with the state simply setting up an environment in which innovation can prosper and companies grow. This should form part of an approach of using competition, regulation and public aid to support growth, economic efficiency and innovation.
The commissioner said that the EU's new economic policy must encourage moving to a low-carbon economy that does not waste the world's resources, where small business is encouraged, red tape slashed, and productivity and competitiveness encouraged. He said that this was where industrial policy and competition policy merged because they both aim to make the most of the potential of the single market. In this connection, the EU's competition policy works on a number of levels. By tackling cartels, abuse of the market (patents and the like), abusive mergers and state aid, it guarantees fair competition that encourages innovation, high quality and downward pressure on markets. It also ensures an open, competitive, dynamic market that allows new players in, and old non-competitive players out, and guides public expenditure to where it can make a difference and alleviate shortcomings in the markets like start-up capital and leverage to encourage private investment. (FG/transl.fl)