Report on competition policy 2009
Mr President, these days competition is often regarded as a concept that makes life difficult. Some people prefer cosy arrangements and the hot tub of backstage agreements as protection against the harsh world of global competition. But, Commissioner, competition is not the spoiler but the lifesaver of the European economy. Europe is at a crossroads. Will it create a transfer economy, with low growth and high structural unemployment, or will it have a wealth-creating economy that stands the test of global competition?
A football team, Commissioner, that is not competitive loses game after game. An economy that is not competitive loses investment, jobs and finally the basis of its social arrangements. Since European competition policy is the exclusive competence of the European Commission, you, Commissioner – or rather Commissioner Almunia, for whom you are standing in – play a decisive role.
This week the United Nations published figures on foreign direct investment in 2010. The United States attracted 43% more foreign investment than in 2009. Foreign direct investment in Latin America rose by 21% and in Asia by 10%. In the European Union it dropped by 20% – and why is that? The money goes to where the action is. Apparently investors regard Europe as the continent of inaction, only generating poor growth figures. It demonstrates the European Union facing a competitiveness deficit.
Commissioner, you have to assure a level playing field for entrepreneurial activity in Europe to make our continent fit for global competition. We all know China.