Competition vs external competitiveness: striking the right balance

Making sure that the European economy stays competitive is most pressing for securing economic growth, creating jobs and providing better opportunities for European citizens. Faced with growing competition from Chinese and Indian state-subsidised exports and the substantial presence of American multinational firms, European industries are calling on competition authorities to enable the creation of European industrial champions. Nevertheless, as recently underlined by the European Council, these authorities are tasked with maintaining fair competition between European businesses inside the Single Market.

The blocked merger between Alstom and Siemens to protect competition in the European railway industry is one of the most recent examples. However, the approval of the Amcor-Bemis merger only a few days later, proves that there is a fine-line between enabling a free market and encouraging competition. These developments have exposed a growing need to re-evaluate the EU’s support of the industrial sector, and the necessity to find a correct balance between internal competition and external competitiveness.

• How can European policy and legislation best strike a balance between prioritising EU competition and championing business?
• Is business environment impacted by these highly publicised cases? What repercussion do these measures have on company stock?
• How do the actions undertaken by European authorities compare to those of Chinese, Indian and American counterparts?