login
login
Image header Agence Europe
Europe Daily Bulletin No. 11167
ECONOMY - FINANCE - BUSINESS / (ae) competition

Vestager seeks to reassure powerless EP

Brussels, 01/10/2014 (Agence Europe) - The European Parliament wants a competition commissioner who is impervious to pressure of all kinds, and it wants to make sure that its voice will be heard in all areas in which it can be of use. Denmark's Margrethe Vestager, who has been nominated by the future President of the European Commission, Jean-Claude Juncker, to take on this portfolio, is expected to get through her hearing before the committee on economic and monetary affairs (ECON) of the EP with no problems, but will nonetheless have to make the MEPs a number of commitments, as they have no powers in this field.

“The EP is aware that the legal bases for the competition policy do not provide for the ordinary procedure” which automatically involves it on the same footing as the Council, a parliamentary source explains. “We anticipate commitments in this direction, in full respect of the Treaty, of course”, the same source added. Another source stressed the value added by the institution in the trialogue on the directive aiming to make it easier for citizens to bring actions for damages and losses due to breaches of the anti-trust rules (see EUROPE 11042).

The EP will also ask for its position to be taken into account, particularly its resolutions. This will not be easy, another source acknowledged, “but if you don't ask, you don't get”.

In the written responses she submitted, Vestager stressed that the application of the ordinary procedure depends on the content of the legislative proposal, but pledged that these proposals would be submitted to the EP at the same time as the Council. Any reconsideration of the Parliament's position in competition issues would require the formalisation of an inter-institutional agreement, she explained, before undertaking active dialogue with the EP, initially through regular hearings at the ECON committee.

Capacity for autonomy. The EP will also question Vestager about her “independence”, according to one source. In a new move brought in by Juncker, the holder of the competition portfolio will no longer rank as a vice-president. In her mission letter, Vestager was told that she would be expected to contribute to projects related to the growth and employment agenda, the single digital market and energy policy. “I do not see the competition portfolio as a lonely portfolio”, Vestager told the MEPs in her written responses. “On the contrary, competition is central to things we want to create both in and for Europe”, she added, going on to paraphrase Mr Juncker.

Mario Mariniello, a former employee in the competition services at the Commission and now with the think tank Bruegel, explained to the Wall Street Journal that Juncker could mean that, in practice, co-decision between the commissioners will be needed. “If that's the true interpretation, then I am very worried indeed. Competition policy should not be used as a tool for industrial policy”, he added. Much, therefore, will depend on Vestager's ability to conserve her independence.

The MEPs see the current Danish finance minister as a very hard and competent worker. She is well-known in Denmark for her listening skills, a quality which has brought her to notice in her bilateral contact with various members of the Parliament. In Denmark, it is said that she will be very difficult to replace. Her greatest achievements is teh skillful way she took forward negotiations on banking union and bankers' bonuses, during the Danish Presidency of the Council of the EU in 2012.

The heritage of Joaquin Almunia. Vestager will be taking on a number of dossiers, including the flagship investigations into Google and Gazprom and those into various unfair fiscal practices. Various MEPs have already spoken up about the Google dossier. In February, Google presented proposed commitments to respond to allegations of abuse of dominant position in the field of online research and the related advertising. First of all, the Commission took the view that these proposals were satisfactory, before changing its mind on reading the most recent arguments submitted by the plaintiffs. Having tirelessly hounded Almunia over the issue, the MEPs welcomed this eleventh-hour change of heart.

“We want to strengthen dialogue with the European Commission in this area and increase the capacity of the ECON committee to deal with these issues, but this doesn't mean that we want a politicisation of the case”, a parliamentary source went on to explain. Whatever happens, various MEPs have already put across the expectations of SMEs and citizens on this front to the commissioner. The European Parliament will not let up the pressure on the next Commission on this dossier, the source warned.

Another issue of importance is the relationship between competition policy and the banking market. In the event of a bank's failure, the revised rules on state aid to the financial sector will apply in 2015. Vestager notes the Parliament's call regarding the end of the application of the provision that allows state aid to be declared compatible with the single market if it is granted in order to remedy a serious disturbance of the economy of a member state. “I agree that we have to come back to the usual application of state aid control in the banking sector. I am ready to do so as soon as the market conditions permit”, she promised the MEPs in advance. (EL)