16 Competition policy
| (25592)
8923/04
COM(04) 293
| Commission Communication: A pro-active competition policy for a competitive Europe
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| Legal base | — |
| Document originated | 20 April 2004
|
| Deposited in Parliament | 30 April 2004
|
| Department | Trade and Industry
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| Basis of consideration | EM of 17 May 2004
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| Previous Committee Report | None
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| Discussed in Council | 17 May 2004
|
| Committee's assessment | Politically important
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| Committee's decision | Cleared, but relevant to the Commission Communication on industrial policy already recommended for debate
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Background
16.1 A new competition regulatory framework came into effect on
1 May 2004 — the day ten new Member States joined the EU.
The Commission has taken that as an appropriate moment to publicise
its new approach to competition policy.
The document
16.2 In the introduction to its Communication the Commission says
it intends to follow a proactive competition policy in order to
promote a competitive Europe — an important aim of the Lisbon
Strategy.[43] It says
such a policy is characterised by:
"improvement of the regulatory framework for competition
which facilitates vibrant business activity, wide dissemination
of knowledge, a better deal for consumers, and efficient economic
restructuring throughout the internal market; and
"enforcement practice which actively removes
barriers to entry and impediments to effective competition that
most seriously harm competition in the internal market and imperil
the competitiveness of European enterprises."
The Commission notes the relevance of this policy
to other policies contributing to the Lisbon Strategy, drawing
particular attention to its Communication on industrial policy,
which we have recommended for debate in European Standing Committee
C.[44]
16.3 In a section about the contribution of competition
policy to competitiveness and economic growth the Commission argues
that competition is a driver of productivity growth and delivers
tangible benefit and that good competition policy supports competitiveness.
16.4 The following section describes a regulatory
framework to foster competitiveness and economic growth. It notes
three themes in the new framework:
"competition strategies of enterprises should
to the largest possible extent be submitted to a unified legal
framework throughout the European Union;
"competition rules as well as their enforcement
in individual cases will be based on a more economic effects based
approach; and
"competition enforcement procedures will become
more transparent, streamlined and simplified without losing their
effectiveness."
16.5 This section then describes the main policy
instruments dealing with anti-trust matters, merger control and
state aid. On the latter the Commission looks forward to the
review and renewal of the present state aid rules due in 2005
and 2006, mentioning amongst other elements regional aid policy
and support for research and development. This section also looks
at the international aspects of competition including cooperation
on competition policy with the USA, Japan and Canada and negotiations
in the World Trade Organisation on a framework agreement on competition.
16.6 The final section of the Communication covers
enforcement practice in support of effective competition. The
Commission says enforcement will be focussed on detecting obstacles
to competition, particularly mentioning dealing with cartels,
monitoring liberalised utility sectors, the liberal professions
and financial services and developing enforcement of state aid
policy.
16.7 The Commission's Communication concludes:
"Effective competition in the EU internal market
makes, through improved productivity and innovation, a decisive
contribution to the competitiveness of the European industry.
A pro-active competition policy will act as a catalyst unleashing
more competition across Europe thereby also helping to better
achieve the Lisbon objectives."
The Government's view
16.8 The Minister of State for Industry and the Regions
and Deputy Minister for Women and Equality, Department of Trade
and Industry (Jacqui Smith) says:
"The Government has since last summer been encouraging
the Commission's Directorate-General for Competition to adopt
a more pro-active competition policy both as a driver of productivity
and as a contribution to the economic reform agenda set out for
Europe by the Lisbon strategy. The Communication is therefore
a very welcome response to that agenda, and one which the Government
has actively influenced, encouraged and supported."
Conclusion
16.9 This document gives a useful and largely
encouraging summary of developments in competition policy. We
clear the document, but we note that it is relevant to the Commission
Communication on industrial policy which we have recommended for
debate in European Standing Committee C.
43 The policy to make Europe the most competitive and
dynamic knowledge-based economy in the world by 2010. Back
44
(25580) 8875/04: see HC 42-xx (2003-04), para 2 (18 May 2004). Back
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