The European Committee of the Regions (CoR)
stressed within the
opinion
adopted by unanimity 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 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 functioning of
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 call on the Commission and 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
criticise the fact that the costs incurred from
competition penalties are passed on to consumers,
ultimately making EU citizens the only victims.
More information:
In June 2021, the CoR adopted
an opinion on the Digital Services Act and the
Digital Market Act
(rapporteur Rodi Kratsa, EL/EPP), which supports the
European Commission's intention of tougher regulation
of digital markets and services while at the same time
highlighting the innovations and competencies cities
and regions may bring to bear for sound and effective
rules. You can find the press release
here.
Last month the European Committee of the Regions opened
applications for the 2023 edition of the European
Entrepreneurial Region (EER) award. Under the
overarching theme "Entrepreneurship and resilient
communities", cities, regions and municipalities can
submit strategies on how they plan to support SMEs over
the next two years. The application deadline is 29
March 2022.
More information on the European Entrepreneurial Region
award, including a list of the previous winners since
2011, can be found
here.
Contacts:
Ella Huber
Tel. +32 (0) 2 282 2373
ella.huber
@cor.europa.eu
Matteo Miglietta
Tel. +32 (0)2 282 2440
Mobile: +32 (0)470 895382
matteo.miglietta@cor.europa.eu