Competiton applied on a one-size fits all approach on EU small states is counterproductive

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.

Maltese Version – ‘L-UE M’GĦANDHIEX TAPPLIKA BIL-GĦAMA REGOLI TA’ ‘ONE-SIZE FITS ALL’ FIL-QASAM TAL-KOMPETIZZJONI’

Fit-tmexxija tal-politika tal-kompetizzjoni l-Unjoni Ewropea m’għandhiex tapplika bil-għama regoli ta’ ‘one size fits all’ għax dan ikun ta’ detriment għall-pajjiżi ż-żgħar fil-periferija tal-Unjoni Ewropea. Dr Alfred Sant, Shadow Rapporteur għas-Soċjalisti u d-Demokratiċi (S&D) qal dan fl-ewwel skambju ta’ ideat dwar ir-rapport annwali fuq il-kompetizzjoni fil-Kumitat Ekonomiku u Monetarju (ECON) tal-Parlament Ewropew. Dr. Sant saħaq li bħala rappreżentant ta’ stat ċkejken, l-analiżi li jagħmel hija li l-metodu li jintuża qed ikun wisq ta’ ‘one size fits all’. ‘Dan huwa ħażin. Mhux metodu tajjeb li kulħadd jiġi trattat bl-istess mod. Irridu nkunu konxji li metodu bħal dan ma jagħmilx distinzjoni bejn reġjuni u reġjuni oħra, bejn pajjiżi u pajjiżi oħra, u bejn sitwazzjonijiet ekonomiċi ta’ pajjiżi u reġjuni differenti.’

Dr. Sant semma x-xogħol li twettaq il-fergħa tal-Kompetizzjoni tal-Kummissjoni Ewropea. ‘Jeżistu żewġ estremi ta’ kif jaħdmu l-affarijiet. ‘Fuq naħa hemm kif qed jiġu ttrattati ż-żoni fil-periferija, il-gżejjer, u ż-żoni maqtugħin miċ-ċentru. Nieħdu l-każ ta’ Cyprus Airways li kellha tagħlaq dan l-aħħar. Cyprus Airways u linji tal-ajru tat-trasport ta’ dan it-tip, li joperaw fuq reġjuni fil-periferija, bl-ebda mod ma jistgħu jaffettwaw il-kompetizzjoni fuq l-iskala l-kbira tal-Unjoni Ewropea. Għandhom frazzjoni żgħira wisq tas-suq, frazzjoni reġjonali. Mhux sew li r-regoli tal-istat jitħallew ifixklu l-interessi tal-pajjiżi ż-żgħar.’

Dr. Sant tkellem dwar id-diffikultajiet li joħolqu ħafna regolamenti li jispiċċaw iħarbtu t-tmexxija tan-negozji u anki lill-gvernijiet. ‘Irridu nkunu ċari. Ir-regoli huma importanti imma ħafna regolamenti jistgħu joħolqu problemi ta’ burokrazija, ta’ proċeduri, ta’ emendi u jistgħu joħolqu wisq investigazzjonijiet. Dan ixekkel in-negozju u l-ħolqien ta’ impjiegi.

Dr Sant tkellem dwar il-kompetittivita` tal-Unjoni Ewropea fis-swieq globali. ‘L-Unjoni mhux qed tkun kompetittiva biżżejjed fis-swieq mondjali. Qed naffaċċjaw kompetizzjoni globali qawwija u jidher ċar li fil-qasam tal-kompetizzjoni, l-intrapriżi fi ħdan l-Unjoni mhumiex imħejjija għal kompetizzjoni globali. Il-kompetizzjoni qed tiżdied, wisq iżjed bl-iffirmar tat-Trans-Pacific Parnership (TTP) bejn l-Istati Uniti u l-pajjiżi tal-Paċifiku. Dan se joħloq qafas ġdid għall-għajnuna tal-istat. It-TPP se joħloq diffikultajiet ġodda għall-intrapriżi fuq is-swieq globali u se jippermetti li tingħata l-għajnuna tal-istat fuq kriterji li mhumiex permessi fl-Unjoni Ewropea.

Dwar l-ekonomija diġitali, Dr. Sant qal li jaqbel ma’ kriterji differenti dwar regoli tal-kompetizzjoni. ‘Irridu naħsbu kif ninkoraġġixxu l-intrapriżi ż-żgħar biex joħolqu inizjattivi ġodda mingħajr ma jaqgħu ilsiera tal-politika tal-kompetizzjoni. Hemm ħafna u ħafna intraprendituri żgħar li qed jersqu lejn is-settur. Irridu naħsbu kif se noħolqu ċentru ta’ għajnuna għalihom, ta’ assistenza, ta’ għajnuna tal-istat biex nimbuttawhom iktar ’il quddiem, u ngħinuhom jibqgħu fis-suq.