Kroes: "Inleidende opmerkingen over fusies in de interne markt" (en)

Neelie Kroes

Member of the European Commission in charge of Competition Policy 

European Parliament plenary session

Strasbourg, 15th March 2006

Europe thrives from breaking down barriers between Member States not by erecting them. Open and competitive markets are key drivers for growth and jobs in Europe. Companies that are successful players in the European market are also well placed to compete globally. The Commission will always look with concern at any attempt by national governments, directly or indirectly, to interfere unduly in the process of cross-border corporate restructuring in Europe.

The Treaty enshrines the principle that there should be no unjustified impediment to the fundamental freedoms it establishes, and in particular the free movement of capital, or to the right of establishment, within it. Fundamental to these rights is the freedom for companies to re-structure, including by change of ownership. To deny this possibility to companies as a matter of principle or by means of failing to implement correctly the provisions of EC sectoral legislation introducing competition in the markets (such as energy, telecoms, financial services...) would amount to a serious restriction of their ability to adapt to the challenges presented by the integration of markets in the EU, to the rapid advances in technology which many industries are experiencing, and generally to the evolving dynamics of doing business in the Europe of today.

European industry is rising to these challenges, including by the appearance of an increasing number of cross-border European businesses. Whilst the effects of individual mergers must be assessed on a case-by-case basis in accordance with the relevant competition rules, mergers between companies based in different Member States are likely to increase competition in the Member State concerned, thereby contributing to the realisation of concrete benefits for European consumers in the form of lower prices and wider choice.

Take the energy sector as an example. The Green Paper the Commission published last week was clear. Sustainable, competitive and secure energy will not be achieved without open and competitive energy markets, based on competition between companies looking to become European-wide competitors rather than dominant national players.

Open markets will strengthen Europe and allow it to tackle its problems. At the same time, the process of cross-border corporate restructuring enhances the competitiveness of European business by equipping it to succeed in global markets.

Any interference in this process by national governments which is not justified by legitimate interest as foreseen in the Treaties, secondary legislation or jurisprudence, would risk to be seriously damaging for the prospects for Europe to benefit from the opportunities presented by market integration and globalisation.

The Commission has two principal legal instruments at its disposal - the single market rules in the EC Treaty and Article 21 of the EC Merger Regulation - for addressing undue interference by national authorities in relation to corporate restructuring. It has the duty to enforce these rules accordingly wherever appropriate.

As guardian of the EC Treaty, and as the institution responsible for merger control on competition grounds at the European level, the Commission is determined to guarantee that companies can effectively benefit from the advantages of the EU's internal market. That is why enforcement of these provisions is, and will remain, one of the Commission's central priorities."