Competition applied on smaller states within the European Union on a one-size fits all approach across the Union is going to be counter productive. Dr. Alfred Sant, Shadow Rapporteur for the Socialists and Democrats (S&D), made this statement during the first exchange of ideas on the annual competition report at the Economic and Monetary Affairs Committee (ECON) of the European Parliament. He said that for representatives in the European Parliament who come from smaller states, the analysis sometimes made of how competition proceeds is that it is too much of a one size fits all approach. ‘This is wrong. It is wrong to have this approach of a one size fits all, especially in a number of cases. We should be aware that the way in which the things get applied do not make proper distinction between regions and regions, between countries and countries, between economic situations and economic situations’.
Dr. Sant referred to the operations of the competition arm of the European Commission. He said there are two extremes in fact in how these things work out in concrete terms. ‘On one extreme there is how peripheral regions, island regions, isolated regions sometimes get treated. The case for instance of Cyprus Airways not so long ago where a decision was taken and things were operated in such a way that Cyprus Airways had to be dissolved. Now, Cyprus Airways and transport airlines of that sort on peripheral regions have no way by which they can affect competition on a major scale in the Union. They have a minor segment of the market, a regional segment of the market, they can be justified on structural grounds and applying to them a one size fits all competition rules simply is not a good idea.’
Dr. Sant spoke on overregulation problems which creates slowdown on businesses and governments alike. ‘We have to be clear that regulation is important but over regulation can be a problem. It can cause new problems, can cause bureaucratization and too many rules, too many procedures, too many amendments to procedures, too many investigations, too many slow ways of doing things hurt business and hurts jobs.’
Dr. Sant spoke on the EU’s competitiveness in global markets. He said that the Union is not being sufficiently competitive on world markets. ‘We are facing global competition in a big way and it is quite clear that, in competitive terms, Union enterprises have not been up to scratch in global terms.’ The S&D Rapporteur said that the competitive trades are increasing, not least with the recent signing of the Trans-Pacific Partnership (TPP) approach between the U.S. and pacific countries and that is going to create the framework for state aid. The TPP is going to be a big challenge to community enterprises on global markets and it is going to allow state aids on a basis that are not allowed in the Union.
Referring to the digital economy, Dr. Sant said he agrees that we need to have different criteria of assessing how competitive stances is to be introduced and operated but perhaps as well we need to think about how to encourage small enterprises in a proactive way without falling foul of competition policy. There are lots and lots of young entrepreneurs coming into that sector and we need to think about how there could be central aids, central assistance, state aid as well to be able to push them forward, to be able to keep them inside the market.