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Europe Daily Bulletin No. 8415
A LOOK BEHIND THE NEWS /

Vice President Giuliano reminds convention not to forget competition rules and market economy

Free competition in favour of citizens. Vice President of the Convention, Giuliano Amato, quite unexpectedly introduced the theme of competition policy into the debates on the constitutional treaty. At the same time, he kept an eye on the "Spring Summit", which is fast approaching (21 March), which will be looking at the implementation of the Lisbon strategy. The question raised by Giuliano Amato in an article published in the Italian newspaper "Il Sole -24 ore" of 2 March is in practice, one of knowing whether the Convention intends to confirm and consolidate the principles of free competition and the market economy, which are the basis for the single market. He has the impression that the general climate is tending to highlight other worries and he cites the temptation to put public services out of the reach of any kind of competition and allow for a certain impunity for State Aid to industry.

Mr Amato confirms his support for quality and universality of services of general interest, as well as provisions allowing certain aid for restructuring companies experiencing difficulties but at the same time points out that the objectives of free competition benefit everybody. It has been an essential instrument in the creation of the single market, getting rid of cartels that carved up the national markets and stopping State Aid to companies in one country to the detriment of another, dismantling autarkic monopolies and offering a range of European operators that can better serve consumers. These directions and the powers that enabled them to be put into practice have to be safeguarded; a step backwards, in my Amato's opinion would b disastrous, because the competition rules represent the only instrument that prevents domination by the strongest. Giuliano Amato has not lost his Socialist faith but he considers that the social objectives and the fairest kind of distribution of welfare and other advantages of economic progress should not be pursued by harming free competition ("we have fallen into the trap of good power too many times and have failed to realise that it is best to always defend freedom areas") but through the means of other policies: training for everyone, encouragement for innovation, bankruptcy discipline, which does not imply social disqualification, a corporate law for preventing abuse…here we are really talking about the Lisbon Strategy.

Respecting balance. How can Convention Members contribute to safeguarding balance between social objectives (to be strengthened) and free competition? There's no contradiction. Even for services of general interest, competition contributes to improving quality and bringing down prices. Mr Amato is not putting forward any texts but it is not difficult to find the thousands of amendments that convention Members have submitted to the drafts of the initial Articles of the Constitutional Treaty and the EPP has announced an initiative that goes in this direction (see our bulleting yesterday p 6). On Article 11 ("exclusive Union competencies"), instead of allocating the EU with the task of establishing competition rules, it would be necessary to underline that it will have to guarantee this competition in the single market in a way that guarantees free movement for persons, goods, services and capital. Balance would thus be maintained between the different "exclusive competencies".

Impressive programmes and initial results. It's not the first part of the Constitution that should go further. This should apply for the second part. The Lisbon Strategy ha already indicated the objectives and methods. The next summit should provide a necessary boost to allow for these to be put into practice. At the risk of appearing naïve, I am still reasonably optimistic that the European Council will be able to relaunch the machine in two weeks' time. I am t aware of the delays that have occurred but we are now witnessing a conjugation of efforts of almost all Member States to overcome the delays and take to the road towards the mythical "the most competitive knowledge-based economy in the world". Divergences between the Fifteen are far less than in foreign policy … I would even say that the programmes risked being too numerous and overloaded (our bulletin of 4 March p8-14 is full of them). The aims of the Competitiveness council are impressive. It is significant that in the name of the already mentioned balance, the positions taken by the Council are accompanied by those of the Environment and Employment and Social Policy Council, which highlight the other parallel policies. Meanwhile, the initial results of this relaunch are already there, the main one being the political agreement on the Community patent (the criticism of Klaus-Heiner Lehne appears to me to concentrate on a single aspect and ignores what is essential). I intend to come back to this, together with other cases, notably telecommunications. (F.R.)

 

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