Mr President, esteemed Members of the European Parliament, Ladies and Gentlemen,
The economy is dynamic, not static. Businesses are therefore daily required to arm themselves for the future and to remain competitive. In the European Union there are more than 23 million businesses in total. Every day many businesses are set up. On the other hand, every day many others cease operations, and many others which remain in existence undergo intensive restructuring.
It must be emphasised here that 99% of businesses are in the small and medium sized category, which accounts for 80% of employment. Functional competition has considerable repercussions for the labour market. However, competition must not lead to distortions in the internal market. That is an essential element for the success of the European economy.
Completion of the internal market and economic and monetary union, the enlargement of the EU and the reduction of barriers in international trade and in investment will lead to further business reorganisation, including in the form of mergers.
Such reorganisations are to be welcomed if they meet the requirements for dynamic competition and are likely to enhance the competitiveness of European industry by improving growth conditions and the standard of living in the Community. This is also in the spirit of the Lisbon goals, which we have already discussed this morning.
This topic is also being discussed at the moment because of the current examples of mergers in the energy sector. The issues for members of the public and consumers are: price trends, which are negatively influenced by lack of competition, and safeguarding jobs.
It is easy for consumers to understand that adequate competition is the only means of putting an end to unjustified price increases. However, it is also true that jobs can only be safeguarded in the long term if businesses are competitive. In this context we must actually pursue a Europe wide competition policy against the background of the four fundamental freedoms.
It is also important in competition policy that a reorganisation measure or merger should not harm competition in the long term. For that reason, Community law includes provisions on such mergers, which can hamper effective competition in the common market or a substantial part thereof. These rules were radically reformed with effect from May 2004. It was particularly necessary in an enlarged Europe to improve rules and reference systems relating to competence and jurisdiction. Greater importance was attached to the "more economic based approach". The rules designed to stop enterprises having a dominant position from hindering competition were also included in the new Merger Regulation. These new rules need to be carefully yet speedily implemented.
The Commission is responsible for the implementation of EU competition rules throughout the Community and in that context it works closely with national authorities. It is the Commission which, in cooperation with the competent authorities in the Member States, investigates cases of suspected breaches of European competition law and decides what further action should be taken.
We are convinced that in applying the new rules the Commission will demonstrate a great sense of responsibility, in order to achieve the competition policy goals which are part of the Lisbon objectives. However, we must not overlook the fact that decisions on mergers must also take into account medium and long term aspects.
In any event, an essential aspect of Europe's economic position is the principle of the rule of law and the associated predictability of decisions. Here, more detailed studies on the "more economic based approach" will be necessary. It is also clear that not every possible case can be regulated by legislation, but that a certain degree of abstraction is necessary. The Council Presidency assumes that in relation to the decisions which it currently has to take the Commission will also exercise its judgment with the greatest care, for example with regard to market definition and determining efficiencies.
Email Service
Accreditation
Hotel Reservation
Route Planner
Weather