From the official press release of the European Committee of the Regions. Read the full version here.
The European Committee of the Regions (CoR) stressed within the opinion adopted at the Plenary Meeting on the 2nd of December, that the European Commission's report on competition policy 2020 must be followed by bold acts. The EU should take the needs of SMEs into account to create a fair and level playing field for the benefit of all EU citizens, considering the implications of the pandemic and the consequences of substantially increased amounts of state aid. Therefore, any COVID-19-related aid should be granted only to businesses that are experiencing the immediate financial impact of the pandemic.
The rapporteur Tadeusz Truskolaski (EA/PL), Mayor of Białystok, stressed: "EU competition policy is essential for the smooth and effective functioning of the European Single Market. Its existence is a test for the European Union's unity, a test of the ability to negotiate and to understand the situation and the expectations of all citizens of the EU."
The opinion drafted by M Truskolaski points out that the objectives of the EU competition policy should take particular account of the needs of SMEs and create a fair and level playing field for the benefit of all EU citizens. The CoR highlights the need for transparent, socially, economically and environmentally responsible state aid rules to avoid the uneven and inefficient distribution of resources. Therefore, any COVID-19-related aid should be granted only to businesses that are experiencing the immediate financial impact of the pandemic. The opinion asks that temporary financial measures to respond to the pandemic should not be used by inefficient companies that are not committed to the EU's climate goals or are in the process of bankruptcy or major restructuring, so long as these processes had already begun before the pandemic.
Local and regional leaders would rather encourage the creation of mechanisms to facilitate the functioning of the European economy in times of economic downturn as a result of different types of crises (as in the case of the COVID-19 pandemic), but reducing the share of direct funding that artificially disrupts market relations.
CoR members stress that a level playing field for businesses in the Single Market is crucial especially for SMEs, for innovation, development of green technologies and sustainable job creation. SMEs must have clear support from the European institutions in foreign markets including actions against potential boycotting of Member States' products and services on the global market.
The CoR welcomes the European Commission's proposal for a Digital Markets Act, and calls on the Commission and the Member States to step up their efforts to promote technology transfer, especially to less developed, peripheral regions and islands. The Committee meanwhile highlights the restricted access of consumers to full online information on products and services due to the limited number of available digital ecosystems and platforms, with low availability of translations into national languages. Moreover, the opinion warns, consumers have insufficient control over their own data and digital identity, with consequent risks for data protection.
The CoR points out that the European digital transformation process requires action to be taken against monopolistic structures. Therefore, the Digital Markets Act should stop gatekeepers from engaging in illegal practices to gain a competitive advantage. Through the opinion, local and regional authorities criticize the fact that the costs incurred from competition penalties are passed on to consumers, ultimately making EU citizens the only victims.
