158th CoR Plenary Session (29-30 November 2023)

Rapporteur: MAZZEO Antonio, Commission: ECON
In this draft opinion, the CoR calls for the "do no harm to cohesion" principle to apply to all EU policies and initiatives, including the implementation of internal market-related policies, and positions itself as the Commission's intra-institutional interlocutor in cohesion matters.

Over the last 3 years, the European Union has faced major challenges to its economy and societies, including the coronavirus pandemic, Russia's war on Ukraine and the increasingly urgent need for a green economic transition. The EU's response to these exceptional circumstances have included changes to its fiscal, monetary and investment policies, notably through the adaptation of State aid to allow Member States to support their economies by means of more direct intervention. Under competition law – the cornerstone of the EU-defining internal market – State aid measures are illegal, unless covered by the exemptions provided by the Treaties.

Public financing of enterprises, which has been on the rise globally, can have a distortive effect on competitive markets. In response to this trend, in May 2021 the European Commission published a proposal for a regulation to tackle foreign subsidies with a distortive effect on the EU single market . It would enable the Commission to investigate subsidies granted by non-EU public authorities to companies operating on the single market, and to apply countervailing measures, should these subsidies be found to be distortive. The Commission would have three tools at its disposal: two are notification-based, allowing it to investigate foreign subsidies in companies' mergers and acquisitions, and to investigate the bids in large public procurement procedures involving third-country government support.

In 2018, under the new Multiannual Financial Framework (MFF) for 2021-2027, the Commission put forward a proposal for a programme aimed at improving the functioning of the single market, at fostering the competitiveness of companies, particularly small and medium-sized enterprises (SMEs), and at ensuring the provision of high quality statistics in all EU policy areas. Following an early second-reading agreement reached on 8 December 2020, Parliament is expected to formally adopt the text at second reading in April, finalising the legislative procedure.

The EU has the world's largest single market. Home to 345 million people when it was launched in 1993, it now numbers 447 million consumers and 23 million companies, and covers a considerable range of policy areas. This year, the single market is celebrating its 30th anniversary. While the single market generates many jobs and considerable economic benefits, many hurdles remain. In March 2020, the Commission identified the top 13 barriers to cross-border activity (such as red tape), and the five main root causes of these barriers (such as inadequate enforcement of legislation). Furthermore, recent shocks – including the pandemic and Russia's war on Ukraine – resulting in restrictions to free movement, shortages of goods and services, and rising energy prices, have shown not only how vulnerable the single market can be to crises, but also the extent to which the EU economy relies on a well-functioning single market.

Competition policy is about fairness and keeping market power in check. This creates a wider choice for consumers and helps keep prices affordable and improve quality. It allows new or smaller competitors to take on established players on a level playing field, encouraging efficiency and innovation, which are crucial factors for the digital and green transformation of the EU economy and society. Through competition, companies remain agile and strong, allowing them to succeed on the global stage. This contributes to more resilient economic growth and fosters employment. The European Commission sets out the competition policy and rules in the EU and enforces these rules along with national competition authorities. The aim of this Flash Eurobarometer is to measure EU citizens’ perceptions about EU competition policy, and their views about competition in key economic sectors.