Brussels, 28/02/2001 (Agence Europe) - The Competition Commissioner Mario Monti spoke on 27 February before the European Parliament's Economic and Monetary Affairs Committee, chaired by the German Social Democrat Christa Randzio-Plath, concerning the reform of the European competition regulations (Articles 81 and 82 of the Treaty). His speech followed a hearing of experts, to which had taken part Monica Widegren (Swedish Competition Authority), Peter Klocker (Bundeskertellamt, Germany), Claire Favre (Cour de Cassation, Chambre Commerciale, France) and Rufus Ogilvie Smals (CBI Competition Committee). In particular Mr Monti underlined his desire to reach an informal agreement in terms of competition at the global level, by emphasising the international dimension of this policy and by insisting on the following elements:
Enlargement: the candidate countries must imperatively put their anti-trust legislation and that concerning State aid in line with European rules. To do this, it is necessary to implant a "culture of competition" that will be encouraged by the European institutions. Certain candidate countries continue to grant tax breaks to nonviable companies, despite the undertakings made in the Europe Agreements, which provokes a climate of legal and economic insecurity.
Bilateral cooperation with third countries: for nearly ten years there have existed cooperation agreements between the EU and the American anti-trust authorities. This cooperation has intensified over the last year and also proven its effectiveness. The EU must work towards widening it, through two instruments:
Framework agreement in the WTO: it is crucial to conclude a framework agreement within the WTO respecting a set of fundamental and binding rights for the signatory countries. The members of the WTO must respect international standards based on a common foundation guaranteeing non-discrimination (avoid favouring national companies), transparency, rule of procedures (the injured party must be able to speak before the final decision), and the right to compensation before the courts. Moreover it is crucial that all the WTO members have a common vision of competition and unanimously declare cartels illegal. Such a framework agreement must, nevertheless, not weaken the sovereignty of the national authorities.
International competition forum: this forum should act as a place for discussion gathering together the various national authorities. The aim is not the creation of a new formal authority, but of a place where there could be a development of exchanges of experiences and practices, in the aim of achieving a consensus.
Multilateral cooperation with third countries: the problems of competition do not stop at borders, and the concluding of an agreement in the framework of the WTO and the creation of an international forum will work towards greater harmony. Europe carries integration in its genome (…), it must be able to transmit its experience and act as a guide to third countries, concluded Mr Monti.
The EP rapporteur Jonathan Evans (British Conservative) questioned the democratic dimension of the global policy favoured by the Commissioner: how to guarantee an effective control in an increasingly decentralised system, he asked. Other MEPs raised in particular the interest of maintaining the cartels in certain specific cases, cartels being able, according to them, as an exceptional measures to stabilise markets. Some MEPs insisted for their part over the need for a gradual approach in the implementation of competition rules in candidate countries.
Mr Monti also outlined the main themes of the Commission Communication from last 21 December on remedies - the acceptable correcting measures proposed by the parties to a merger operation when the Commission, at the end of the first investigation phase, declares the operation incompatible with Community competition rules. These measures enable the parties to bring concessions which, if they are accepted during the second phase of investigation, allow them to complete the planned operation. The Commission Communication sets out, in particular, the principals allowing to assess the possible benefits that the corrective measures could have. The sale of assets does not automatically resolve competition problems and the buyer must have the funds necessary for the continuity of the activities bought and have as aim to compete heavily with the seller, underlined Mr Monti in conclusion.