Brussels, 27 October 2022
Introduction
Good afternoon
I hope you enjoyed your lunch and that you are ready for the second part of our programme for today.
Before handing over to Monique, Fiona and Lewis to continue our discussion on the role of competition and its importance for Europe to thrive on the global stage, let me first thank you again for being here today.
Your interest shows the importance of the subject: whatever our backgrounds, I think we share a belief in maintaining and nourishing, developing an economy that truly works for people – or, as we like to put it in Europe, a “Social Market Economy”.The thing is that everyone wants to belong. If you lose your job or get fired from a job, you will find a new job. But if you have the feeling that you are fired from the society. Where do you go? It is important that our social market economy works. People feel that they are counted in.
Your interest by being here today shows that we have a serious challenge. We are not there yet.. It’s important to acknowledge this, honestly and up-front: a lack of choice and opportunity may undermine people’s belief in society and in in the sort of capitalism we have. Maybe you had the same feeling when President Jo Biden this summer tweeted: “Capitalism without competition is exploitation”.
In a digital world, when people don’t feel they have real choices in how they access information and products online, this can damage our democracies. It may discourage voters from participating in our democracies. Discourage us from building societies where we can feel at home. This can increase the pressure to embrace policies that will undermine our efforts to build societies where you can feel at home, like protectionism and economic nationalism.
The only policy goal for markets is to serve the people
Part of the problem is how we communicate about what we, as competition enforcers and policymakers, already do. We often talk about ‘efficient market outcomes’. But sometimes we forget to say that the whole point of ‘efficient market outcomes’ is quite straightforward: that there is food on the shelf, at a price families can afford. We also talk about something even more dear to me: ‘defending against anti-competitive practices’. Sometimes we forget to say: the reason we do this, is so young people with big dreams and fresh ideas can start a new business, with a product no one else imagined could exist. A product that makes people’s lives richer and better.
By keeping our focus on these human goals, I think we make it clear that what we want to achieve is to make people better off. Help build public support for our day-to-day work of keeping markets on track – whether through regulation or competition law enforcement. It has been said that “nobody falls in love with the Single Market”. That must be nobody minus one, because I am..
Because the single market is us. Maybe we’ve had a bad image with this invisible hand thing. The single market is just thousands and thousands of people making choices, doing business, making the market.
If people understand that the Single Market is about them and their families, it will be easier for us tell about the decisions we take; and why we think new rules might be needed, while we are pushing forward
This focus on people is about more than just messaging. It is about shaping the substance of our work. It is a very well-defined perspective. You can focus on few people or few countries, but it is special when you say that you focus on people. Because we are thrown into a world of volatility. With the world changing at such a fast pace, regulators and policymakers are called upon to find new solutions; new ways of working. Sometimes we must do so with very short notice. As we’ve seen at the start of the pandemic. We saw that when Russia invaded Ukraine. In finding those solutions, the first question we ask ourselves is: will this impact people? It’s not neutral. We can’t lose track of the long term even though we must deal with the emergency. The two things need to be aligned.
We discussed these questions in our first panel today, which dealt with the role competition policy plays in managing crises, boosting competitiveness, contributing to diversity, supporting our democracies and, I think very importantly, making sure no one is left behind..
Serving people through a green and digital transition
Servicing people is what democracy is for. Of course, serving people is about more than just low prices, innovation and a wide choice of products. As many young people have been showing us over the past four years with their climate protests., It can be no surprise that people also care about the future of the planet. That is why, in order to work for people, our competition rules and market regulations must also work to support our green objectives. Not just decarbonising the economy, but also reducing pollution and waste, and protecting biodiversity.
The challenge is that we are in the middle of a severe energy crisis. As we have heard in our second panel this morning, we want an effective response to Russia’s weaponization of energy against Europe. And we also want that response to maximise our long-term goals, so that we keep our promise to those young people who took to the street to demand a real green transition. We made a promise that we will enable a real green transition. Competition policy might not be in the lead here, but it has a very important supportive role to play. And there is no shame in being a subcontractor – you still have a very important role to fill.
Linked to this are the ways in which Competition policy supports the digital transition. In the Commission we often refer to the green and digital transitions as ‘twins’. This might be a bis misleading because you cannot have a green transition without the digital, but you can have a digital transition that’s not green. One twin is dependent on the other. . And both transitions work together. Achieving our green goals in a way that also makes people better off – well, that depends on the kinds of innovations which the digital age can bring to our economy. Smart traffic management system can reduce energy wasted on traffic jams and as such also pollution in our cities. Digital solutions in production can bring down input costs, saving energy and reducing emissions. Smart farming can reduce the intensity of agriculture: fewer pesticides and less fertiliser means more wildlife and cleaner water.
Here competition policy and regulation have a common role to play in keeping digital markets open and fair. Digital markets have special features, as we have learned over the last years. It has to do with the scale and the role played by data. These markets can still work for people, but for that to happen, we need to ensure they remain fair and contestable. So, we continue with our competition lave enforcement on a case-by-case basis and also supplement it with new regulation.
The EU’s place in global markets – a place for people
And then, what is perhaps the toughest challenge of all: making sure that as Europe marks its place in the world’s shifting economic order, we do so with the interests of our people in mind. Because there are other priorities. Again, it is not trivial. In Europe this mandate comes from the integrity of people. That everyone has a right to be here.
For seventy years, free and open trade has brought enormous benefits for Europeans. Most obviously, our powerful export sector has created jobs, making us better off. Also, as consumers, we have benefitted from the widest possible range of products to choose from. And finally, open and fair trade has made our economies richer, providing us with the fiscal resources to invest in social protection, education and healthcare for all our people. These are integrated parts of the European economic model.
Now we’re recalibrating globalisation. And maybe it’s a good thing that we shut the light behind us. Because there were so many things that we had not solved. Now competition law enforcers are all over the planet and together to make things better on digital. We are diversifying our supply chains. In every trade agreement that we make ILO conventions are absolutely key for decent working conditions. This is a different world. This is one that is much safer for everyone involved. Some of you might have used the break to look at the results from our latest Eurobarometer survey that are quite interesting. The results are quite solid and consistent from all over Europe. What they say is that competition improves the daily life of citizens and SMEs. It brings better prices, more choice and increased innovation.
So people do see what it is that we do. We should continue along this path. At the same time, with this new world of uncertainties, with this new task of recalibrating globalisation, we should not underestimate the challenges we face. Defending our interests means finding the right balance between, on the one hand, the ideal of free and open trade, and on the other hand, making sure that our economy is resilient in the face of external disruptions and threats.
Overall, this is not something we in Europe should do alone. But we do not feel alone in Europe. National competition enforcers also help us with the law enforcement. But we do need to lift our gaze outside Europe. The best way forward is to build on our international partnerships, especially with the countries that share our values. That means dialogue, something we have stepped up with the United States through the Trade and Technology Council, and with many other partners across the globe because you can’t recalibrate globalisation without having a dialogue.
Not only does this amplify our effectiveness on the global stage, but it is in itself a statement that we believe – strongly – in liberty, democracy in human rights. And obviously in the rule of law. Because ultimately, in order for markets to work for people, they must serve the values and principles of a free and just society. They must work to resist aggression and promote peace. Because that must be a fundamental and ongoing effort.
Thank you!
Source – EU Commission