Strasbourg, 06/02/2002 (Agence Europe) - The proposals by the Commission concerning distribution in the automobile sector focused on consumer interests, Romano Prodi said in Strasbourg, on Tuesday, as he opened the press conference for Competition Commissioner Mario Monti (see yesterday's EUROPE, page 9). The advantages for consumers will be "tangible", not only when buying but also when having repairs done, stressed Mr Prodi.
Mr Monti made it clear for his part that the new system also improves the situation of distributors (the system so far has really been a "straitjacket" as distributors have been totally dependent upon the manufacturers, he said, but noted that this was about to change). Confirming that there will be wide consultation with all those concerned, Mr Monti said: "We are open to good arguments. We shall improve what can be improved but the objectives and motivation behind the draft will not change". While stressing that the Commission is not sensitive to pressure, Mr Monti added: "If public or private entities have positions they wish to put across, then let them go ahead and do so". In this context, he considers that the expression of disagreement (for example, that expressed by Chancellor Schröder, cited by a journalist, on certain parts of the proposal) "is not appropriate".
In answer to questions put by journalists (often the same as those raised by MEPs during the brief debate that took place during plenary), Mr Monti said:
- Level of prices. One can imagine there being a downward trend, a tendency to converge, and above all, an injection of competition enzymes into the way the system works. In some countries where the tax component of prices is very high, prices could increase, admitted Mr Monti, citing the case of Denmark but adding that the competition authorities in this country took a stance in favour of a direction similar to that taken by the Commission.
- Taxation. Taxation remains a national responsibility, but perhaps the area covered by the directive could be one of the limited sectors of tax policy where decisions by qualified majority (instead of unanimity) would ensure that the single market works as it should.
- Application of the regulation. Even if the current system is very generous towards the motor industry, Mr Monti said he has sometimes been forced to impose fines. He said that keeping more rigorous and clearer rules will facilitate both enforcement and sanctions.
Several MEPs express reservation about Commission proposal
The first reactions of the European Parliament to reform of competition rules concerning the motor industry were cautious. Rapporteur Christoph Konrad (CDU) expressed largely positive views but hoped, among other things, that there would be more time with regards enforcement of the regulation. Mr Konrad criticised the governments which (like his own, but also like that of France and Italy) used this Commission proposal to internal policy ends. Those who protest, said Mr Konrad, seem to forget that the structural change in progress in the motor industry is not recent and that it was the industry itself that provoked such change.
The Socialist Group, speaking through specialists in the sector, German nationals Bernard Rapkay and Bernd Lange, said it was not very convinced by the arguments put forward by the Commission. It fears concentration will be strengthened to the detriment of the smallest.
The Commission's proposal is only a beginning, but not the "full Monty", said Graham Watson, President of the Liberal Group. According to the Group, it is a step towards liberalisation, but does not go far enough for the protection of consumers.
EP session (cont.)