Sweden, Estonia, Finland, Ireland, Iceland, Latvia, Poland, Portugal, and the Czech Republic published a joint letter on Thursday, 29 February, that was notably addressed to the future European Commission in the context of preparing reports on the future of the single market and on European competitiveness. They call for fair, undistorted competition (i.e. a level playing field) to be maintained—which, in their opinion, is the best guarantee of a healthy, productive economy. These countries state that they are committed to a strict State aid framework and State aid control; they call for there to be a move away from short-term flexibilities and also want coordinated, structural responses at the European level so as to increase activity in specific sectors.
The signatories warn against [triggering] a race for public subsidies and the potential fragmentation—both within the single market and at the international level—that could result from the flexibilities offered by the various temporary State aid frameworks. They believe that only market failure should justify public intervention and that companies should, by default, test their robustness on the markets.
These countries believe that it is important for public support to be able to be contributed to traditional state functions—in the same way as for the green transition and for research and innovation—but they also stress the importance of private funding in this context.
The signatories thus also call for targeted, proportionate State aid control and a framework that have been drawn up with Member States, that are based on scientific evidence, and that include public consultations.
The nine countries put forward alternatives to relaxing frameworks, such as lifting barriers in the single market, simplifying administrative procedures, and partnerships with third countries.
The signatories believe that diversifying supply chains can be pursued through international partnerships and free trade agreements while including high environmental and social standards and defensive instruments to protect [the EU] from unfair competition from third countries.
Further information: https://aeur.eu/f/b38 (Original version in French by Émilie Vanderhulst)