At its plenary session on Wednesday 29 November, the Committee of the Regions (CoR), the European Union’s advisory body of local and regional representatives, unanimously adopted an opinion on the European Commission’s 2022 report on competition policy. The CoR is opposed to extending the relaxation of the EU State aid rules.
Regional and local leaders recognise that the flexibility introduced into European State aid rules has helped to mitigate the consequences of the Covid-19 pandemic, the war in Ukraine and the energy shock. However, they point out that a prolongation of this flexibility could lead to fragmentation of the single market and increase inequalities, both between and within Member States. For example, France and Germany claim that they have made almost 80% of the investments under the Temporary Framework for State aid.
Regional and local leaders are particularly concerned that rural areas or areas undergoing industrial transition will not be able to benefit from the public support they need to meet the challenges of the green and digital transitions and the energy transition.
The Committee of the Regions therefore calls for measures to be taken in the short and medium term to reduce market distortions before these flexibilities are abolished.
It also hopes that future State aid will be well designed and properly implemented, and that it will do more to help regions in difficulty to implement the green and digital transitions.
In addition, the CoR is in favour of fair competition, guaranteed throughout the EU.
Finally, on a broader level, the Committee of the Regions recommends that the European Commission focus on strengthening cohesion policies so that competition policy and cohesion policy complement each other and serve to promote inclusive economic growth.
Link to opinion: https://aeur.eu/f/9w8 (Original version in French by Émilie Vanderhulst)