Margrethe Vestager, the EU's competition commissioner, argues that competition policy is not an obstacle to industrial policy but rather a crucial tool for its success. She contends that robust competition at home is essential for European companies to become globally competitive, fostering innovation and efficiency.
Vestager's stance comes amidst a debate within the EU, highlighted by Mario Draghi's report, which suggests aligning industrial, competition, and trade policies. While some interpret Draghi's report as advocating for a relaxation of competition enforcement to create "European champions," Vestager emphasizes that competition policy should not "lose its soul" and that a competitive environment is vital for effective industrial policy.
She also points out that the challenges to the European economy, such as insufficient investment in innovation and lack of market integration, are often mistakenly attributed to competition policy. Vestager believes that competition rules, particularly state aid control, are essential to prevent market distortions and ensure that public funds are allocated efficiently, benefiting consumers and driving innovation, rather than propping up inefficient structures or favoring specific companies.
