Speech Kroes: "Concurrentiebeleid is essentieel voor Lissabon-strategie" (en)
Neelie Kroes
Member of the European Commission in charge of Competition Policy<h1> Effective Competition Policy - a Key Tool for Delivering the Lisbon Strategy </h1>
Introductory statement at EMAC Open Meeting of Coordinators
Brussels, 3 rd February 2005
Madame le Président, Mesdames et Messieurs les députés, je vous remercie de m'avoir invité à cette réunion aujourd'hui. Je suis très contente d'être parmi vous et de pouvoir vous présenter la vision de la Commission européenne en ce qui concerne les objectifs à atteindre d'ici cinq ans dans le domaine de la concurrence.
Cette vision comporte des propositions ambitieuses. Pour ma part, je vous assure de ma détermination à les poursuivre de façon ouverte et transparente vis-à-vis de votre commission. C'est dans cet esprit que je m'adresse à vous aujourd'hui. J'espère pouvoir recueillir vos réactions, vos commentaires et vos conseils, que j'écouterai avec le plus grand intérêt. Si vous le permettez, Madame le Président, je continuerai ma présentation en anglais.
Yesterday the Commission presented its mid-term review of the implementation of the Lisbon Strategy. As President Barroso told the Parliament yesterday, the Commission has identified jobs and growth as the most urgent challenges facing Europe today. We have set this question at the very heart of what the Commission hopes to achieve over the next five years. Our agenda will be focused on actions to help the Union and the Member States drive up productivity and create new jobs.
Of course growth is not an end in itself. But it is only through sustainable, dynamic growth that Europe can safeguard the standard of living and social protection which European citizens have come to expect.
I am convinced that competition policy is of fundamental importance for the future of the partnership for growth and jobs. We have already put in place a European Single Market, and many barriers to trade and growth have been abolished. Europeans are rightly proud of this unique achievement. However, if Europe is to achieve its full potential for growth, we need to make sure that the Single Market provides an environment which rewards those businesses which innovate, which invest in research and development, which deliver better quality products at lower prices.
That is the role of competition. Competition drives competitiveness, growth and productivity. An effective, well-managed competition policy is both a pre-requisite and a key tool for delivering the Lisbon agenda.
I am committed to playing my part in that process. That is why I am pleased that the Commission has endorsed my suggestions for concrete actions in three key competition policy areas: reforming the state aid regime; ensuring effective enforcement of our modernised competition law; and actively promoting competitive practice.
State aid reform
Firstly, I intend to put the Lisbon target of `less and better aid' right at the top of the agenda.
`Less aid':
- because it is a waste of taxpayers' money to artificially maintain jobs on a temporary basis instead of spending it on sustainable jobs;
- because it is simply not acceptable that while the majority of firms work hard to build success on their superior skills and adaptability, others are granted artificial advantage purely through public financial support;
- because in the long run aid may prevent market forces from rewarding the most competitive firms thereby decreasing overall European competitiveness, leaving customers with higher prices, lower quality and less innovative products.
`Better aid':
- because intelligently-targeted support can fill the gaps left by genuine market failures and empower more undertakings to become active competitors;
- because when used properly, public aid can create positive spin-offs for society as a whole without distorting competition;
- because European businesses - and in particular the smaller ones - do sometimes need help to get started - to get onto the ladder of growth, innovation, research and development - and to start climbing.
As announced in the Commission Legislative and Work Programme, this spring I will invite the College to endorse a communication setting out a strategy for delivering less and better aid. I want to use this opportunity to launch a wide debate on how we can ensure that in the future aid is concentrated where it can add greatest value in line with the Lisbon objectives. That means focusing more on measures which will boost innovation, improve access to risk capital, and promote research and development.
Regional aid will have to be targeted much better on the regions most in need, taking into account the realities of an enlarged Union. But we must also guarantee that there is no discrimination between otherwise similar regions just because they happen to be situated in different Member States.
And we need to look again at how to leave more flexibility for smaller amounts of aid, through a revised `de minimis' threshold which will also contribute to reducing the administrative burden on national, regional and local state aid providers. More generally, I want to promote imaginative solutions to improve the regulatory environment and cut unnecessary red tape. I believe that there is room for simplifying the rules and making them more efficient and user-friendly.
Delivering a coherent, intelligent reform of state aid rules is not something the Commission can or should embark on in splendid isolation. That is why I am keen to have a substantive, genuine debate on these issues. Your Committee is a key interlocutor in this respect. I intend to listen carefully to your thoughts and ideas for improving state aid rules and practices to make them work better for industry, citizens and national, regional and local authorities.
Effective enforcement of modernised competition law
The second pillar in the Commission's strategy for competition policy over the next five years is perhaps less sexy, but no less essential. It is vital that we maintain the pattern of effective enforcement of competition law. Yes, through decisions on individual merger and anti-trust cases. But also through encouraging the mainstreaming of enforcement so that national authorities and private actors play a full and complementary role in ensuring that businesses throughout Europe play by the rules.
An effective enforcement policy ensures that the spoils of the Single Market are not carved up in private by a handful of businesses. An effective enforcement policy guarantees that each and every undertaking competes on its own merits; it is a pre-requisite for competition and for keeping business on track for continuous improvement. And it is only by creating and maintaining a fair competitive environment at home that our businesses will learn to compete effectively abroad.
There is no need for a radical revolution here. Far from it. Our present rules - which were the result of extensive consultation with the European Parliament and then agreed by the Council - give us the necessary means. They are based on sound economics and apply the same standards as all major global jurisdictions. I am committed to putting them properly into practice.
However, I do see scope for a series of complementary actions to enhance this work. I would like to further explore the idea of a European-wide `one-stop-shop' for leniency applications in cartel cases. And, as announced in the Commission Legislative and Work Programme, I plan to present a Green Paper setting out ideas for facilitating private action against anti-competitive practices.
Actively promoting competitive practice
The third key building block in this `competition for competitiveness' strategy is about getting onto the front foot and actively promoting good competitive practice. It is not enough to stand around waiting for anti-competitive behaviour to occur and then correcting it. Our fundamental goal should be to create a climate in which anti-competitive behaviour is prevented at source. That means not just enforcing the rules, but changing minds and attitudes too.
I see two immediate areas where we can be more proactive. In line with the recommendation in the Kok report, I would like to use the Commission's new powers to conduct investigations in a limited number of key sectors where competition does not appear to be functioning as well as it might. We will go into these investigations with an open and constructive attitude, and will focus on those sectors which have the greatest impact on overall competitiveness, such as transport, energy and financial services. Where we identify obstacles to competition we will propose solutions, working closely with national administrations, regulatory bodies and competition authorities.
Secondly, and as I said in September, we need to screen legislation _ both at EU and at national level _ to identify restrictive measures which have an unnecessarily harmful impact on competitiveness and consumers. At European level, the Commission will systematically test the impact of new legislative proposals on competition by making this an integral part of the impact assessment tool.
Conclusion
I find this agenda rather exciting. I believe that Europe stands at a crossroads. Either we continue down the path of low growth and insufficient employment and risk undermining the societal values we share. Or we face the challenge and innovate, stimulate and adapt, promoting growth and job creation and ultimately maintaining the economic base on which our vision for European society is founded. I know which route I favour, and look forward to sharing the journey with you.