A one-size-fits all approach on EU state aid policy does not work

A one-size-fits all approach on state aid in EU competition policy does not work, Maltese MEP Alfred Sant told the European Parliament’s Committee on Economic and Monetary Affairs (ECON). Dr Sant was reacting in his role as shadow Rapporteur (S&D) for the 2016 EP Annual report on Competition Policy to a draft report presented by Spanish Catalan ALDE MEP Ramon Tremosa.

Dr Sant said Mr Tremosa had good discussion points on making a better EU policy framework for the future, but he didn’t agree on his often too liberal views on competition.

“When it comes to state aid – a one-size-fit-all approach on EU Competition policy does not work in this sector. State intervention is in many scenarios well needed, especially when it comes to the provision of services of general economic interest which goes over business interests. State aid in the transport and energy sectors cannot be simply abolished – particularly in the current historical juncture in which Europe is passing through, where there is both the political and the economic will for a transition towards cleaner and more climate friendly energy supply and transportation system.”

Dr Sant said Tremosa’s reference to state aid to airlines is rather imbalanced.

“Low cost airlines are often receiving other kind of state subsidies against which major airlines often complain. Restructuring of national airlines is often needed. These airlines need to safeguard connections for non-viable destinations such as peripheral and sparsely populated regions. They need to safeguard thousands of jobs in the industry and also compete with the precarious job conditions that low cost airlines offer to their employees. Europe’s big airlines are also facing unfair competiton with other major non-EU airlines.”

Dr Sant referred to Tremosa’s call to open up competition in the transport sector for public ports and centrally managed airport networks.

“These are areas which are more often than not crucial for the survival of regional competitiveness, particularly in the context of insular and peripheral regions of the EU. We cannot allow these fundamental economic elements to be dependent upon the mercy of the market.”

The Maltese MEP welcomed Tremosa’s approach on National Competition Authorities, emphasising that the concept of subsidiarity should be strictly followed.

“On the digital agenda – Google is here well in the spotlight – we must be careful how to interfere (or not) within this very delicate market area while allowing for innovation in Europe to also flourish.”

Dr Sant said the Director General on Competition needs to have a full team of home-based engineers and specialists in the sector of digital economy. This needs to however go on hand-in-hand with a structural division of the DG’s competences.

“The Commission cannot be judge and jury at the same time, there has to be an organisational and an operational distinction between those writing the rules, and those who execute the same rules.”

Dr Sant welcomed Tremosa’s request for an in-depth analysis on how the lack of competition in certain parts of the food supply chain is affecting prices and the viability of agricultural producers.

‘This should be looked at especially in the context of small scale farmers which is increasingly becoming an extinct species in our continent.”

Mr Tremosa welcomed Dr Sant’s assessment on national competition authorities and congratulated him on his latest publication on ‘Malta & the Euro’. The Catalan MEP said he agrees that state-aid in transport is sometimes needed but said that it cannot be a free for all situation. The discussion on the EU’s Competition policy will resume on Tuesday 21 November with the participation of EU Competition Commissioner Margrethe Vestager.

You may wish to follow Dr Sant’s intervention at ECON on this link.

Maltese Version – ‘ŻARBUN WIEĦED GĦAL KULĦADD FIL-POLITIKA EWROPEA TAL-GĦAJNUNA TAL-ISTAT MHIX EFFETTIVA’

Żarbun wieħed għal kulħadd fil-politika tal-UE dwar l-għajnuna tal-istat mhix effettiva, Alfred Sant qal lil Kumitat Ekonomiku u Monetarju tal-Parlament Ewropew (ECON) meta irreaġixxa għal abbozz ippreżentat mill-Ewroparlamentari Katalan Ramon Tremosa (ALDE) dwar il-politika tal-Kompetizzjoni tal-UE. Dr Sant huwa ‘Shadow Rapporteur’ għal S&D għar-Rapport Annwali tal-Politika tal-Kompetizzjoni 2016.

Dr Sant qal li Tremosa kellu punti ta’ diskussjoni validi biex jitjieb il-qafas tal-politika tal-UE għal futur, imma esprima nuqqas ta’ qbil għall-ideat tiegħu fil-qasam tal-kompetizzjoni li ħafna drabi huma “wisq liberali”.

“Meta niġu għall-għajnuna tal-istat – l-atteġġjamet ta’ ‘one-size-fits-all’ fil-politika tal-Kompetizzjoni tal-UE ma taħdimx. L-intervent tal-istat, f’ħafna każi huwa bżonnjuż, speċjalment meta niġu għall-provvista ta’ servizzi ta’ interess ekonomiku ġenerali li jaffettwa l-interessi kummerċjali. L-għajnuna tal-istat fl-oqsma tat-trasport u l-enerġija ma jistgħux jitneħħew – speċjalment issa li hemm ir-rieda kemm politika u kemm ekonomika biex issir il-bidla lejn ħolqien ta’ enerġija u sistema ta’ trasportazzjoni aktar nadifa u mhux ta’ ħsara għall-ambjent.”

Dr Sant qal li r-referenza ta’ Tremosa fir-rigward tal-għajnuna tal-istat għal linji tal-ajru hija żbilanċjata.

“Il-linji ‘low-cost’ ħafna drabi qed jirċievu sussidji tal-istat differenti, li sikwit jilmentaw dwarhom il-linji tal-ajru l-oħra. Ir-ristrutturar ta’ linji tal-ajru nazzjonali ħafna drabi huwa meħtieġ. Dawn il-linji tal-ajru jridu jħarsu l-konnettivita` li għandhom lejn destinazzjonijiet mhux vijabbli pereżempju lejn żoni tal-periferija u reġjuni b’popolazzjonijiet żgħar. Iridu jħarsu eluf ta’ impjiegi fl-industrija u jkollhom jikkompetu wkoll mal-kundizzjonijiet ta’ xogħol prekarju li l-linji ‘low-cost’ joffru lill-ħaddiema. Il-linji tal-ajru l-kbar Ewropej qed jaffaċċjaw kompetizzjoni inġusta ma’ linji oħra tal-ajru li mhumiex Ewropej.”

Dr Sant irrefera għal idea ta’ Tremosa li tinfetaħ il-kompetizzjoni fis-settur tat-trasport fil-portijiet pubbliċi u fl-ajruporti li jitmexxew b’network ċentralizzat.

“Dawn huwa oqsma li ħafna drabi huma kruċjali għal għejxien tal-kompetittivita` reġjonali, b’mod partikolari f’reġjuni insulari u tal-periferija tal-UE. Ma nistgħux naċċettaw li nħallu dawn l-elementi ekonomiċi fondamentali jkunu dipendenti fuq il-ħniena tas-suq.”

Sant qabel mal-atteġġjament dwar l-Awtoritajiet Nazzjonali tal-Kompetizzjoni, u enfasizza li għandna nkompli nimxu fuq il-kunċett ta’ sussidjarjeta`.

“Rigward l-aġenda diġitali – Google hawnhekk qed tiġbed ħafna attenzjoni – irridu noqogħdu attenti kif nindaħlu (jew le) f’dan is-suq delikat u fl-istess ħin inħallu l-innovazzjoni fl-Ewropa tikber aktar.”

Dr Sant qal li d-Direttorat Ġenerali tal-Kompetizzjoni jeħtieġ tim sħiħ ta’ inġiniera u speċjalisti tas-settur ekonomiku u diġitali. Dan għandu jimxi id f’id ma’ diviżjoni strutturali tal-kompetenzi tad-DĠ.

“Il-Kummissjoni ma tistax tkun l-Imħallef u l-ġurija fl-istess ħin, għandu jkun hemm distinzjoni bejn dawk li jiktbu r-regoli u dawk li jimplimentawhom.”

Dr Sant laqa’ t-talba ta’ Tremosa li sejjaħ għal analiżi dwar kif in-nuqqas ta’ kompetizzjoni f’ċertu partijiet tal-katina tal-provvista tal-ikel qed taffettwa l-prezzijiet u l-vijabilita` tal- produtturi agrarji.

“Din għandha tingħata attenzjoni speċjalment mil-lenti tal-bdiewa ta’ skala żgħira li dejjem qed jonqsu f’dan il-kontinent.”

Tremosa qabel mal-valutazzjoni ta’ Dr Sant dwar l-Awtoritajiet Nazzjonali tal-Kompetizzjoni u feraħlu dwar il-pubblikazzjoni riċenti tiegħu ‘Malta & the Euro’. L-Ewroparlamentari Katalan qal li jaqbel li fit-trasport hemm bżonn l-għajnuna tal-istat imma qal li ma tistax tinħoloq sitwazzjoni fejn kulħadd jagħmel li jrid. Id-diskussjoni dwar il-politika tal-kompetizzjoni tal-UE se tkompli nhar it-Tlieta 21 ta’ Novembru bil-parteċipazzjoni tal-Kummissarju tal-Kompetizzjoni tal-UE Margrethe Vestager.

Tista’ ssegwi l-intervent ta’ Dr Sant fuq din il-link: