The Committee on Economic and Monetary Affairs adopted
an own-initiative report by Tibor SZANYI (S&D, HU) on the
annual report on EU competition policy.
Members welcomed the annual report by the Commission
on competition policy, which demonstrates that proper EU
competition policy can help to restore a sufficient level of
investment and innovation by creating a fair competition
environment.
Single market integration: stressing that without an effective EU competition
policy the internal market cannot attain its full potential,
Members stressed that an effective competition policy has to allow
for the specific market conditions applying to SMEs,
micro-enterprises and start-ups, and must protect workers’
rights and make for fair taxation.
The report insisted, inter alia, on the need
to:
- prioritise the strengthening of the post-Brexit
Single Market by ensuring full compliance with EU competition
laws and by further increasing cooperation between Member States on
tax issues;
- investigate thoroughly all the cases where it is
suspected that the aim is illegal tax optimisation by
multinationals in order to put an end to unfair tax competition
(including illegal tax benefits granted) by Member
State;
- establish a common consolidated corporate tax
base (full CCCTB), which will help to eliminate distortions of
competition and provide a guarantee that no profit leaves the EU
untaxed;
- prevent the misuse of EU funds and stimulate
accountability in public procurement; Members urged the
establishment of the European Public Prosecutor’s
Office;
- enforce single market rules also at Member State level and for infringements to be
dealt with in order to tackle fragmentation of the single
market;
- further reinforce the single market by removing the
remaining barriers and obstacles: a robust framework for
budgetary and fiscal convergence would reinforce the
EU’s economic cohesion and competitiveness and improve its
capacity to face global competition,
- fight against fiscal and social
dumping, abusive tax planning and tax
evasion to ensure fair competition across the single
market;
- complete the implementation of the Single European
Railway Area.
Single market: given
that the digital single market could create hundreds of thousands
of new jobs and contribute EUR 415 billion per year to the EU
economy, Members called for greater attention to be focused
on the new business models used by digital companies.
Members recommended:
- taking ambitious steps to eliminate illegitimate
obstacles to online competition, in order to ensure
barrier-free online shopping for EU consumers purchasing from
sellers who are based in another Member State;
- assessing the potential impact of every initiative,
notably those aiming to promote e-commerce and clarify the
permanent establishment status for the digital sector, on the
ability of SMEs to benefit from the digital single
market;
- creating a toolkit, which is indispensable in order
for the numerous forms and variants of the sharing economy
to receive support at EU level;
- speeding up all procedures against anti-competitive
behaviour which infringes EU antitrust rules by a number of
companies, in particular by internet and telecom giants and
other media companies, film studios and TV
distributors;
- bringing forward a regulatory strategy taking into
account technology convergence and, in particular, the
multiplication of platforms;
- safeguarding competition in the internet search and
telecommunications sectors, including with regard to internet
services and spectrum allocation;
- conducting in-depth consultations with network
operators and relevant stakeholders on how to bring down charges
for intra-EU calls to the level of local calls in the most
efficient way.
State aid: Members
welcomed the overhaul of the State aid rules and suggests that a
specific annual report be sent to Parliament. They reminded the
Member States that the aim was to better target aid measures
towards long-term, sustainable economic growth, quality job
creation and social cohesion, while ensuring an equal level playing
field and the free functioning of the social market
economy.
The Commission is called upon to launch a road
map for less but better-targeted State aid, aiming to open up
the possibility of reducing State aid by lowering taxes, therefore
stimulating new businesses and fair competition.
The report noted that in order to achieve a properly
functioning Energy Union and to avoid non-compliance with
State aid rules and also misuse of EU funds, all State aid cases
and public procurement irregularities connected to energy and
environmental investments must be strictly monitored and
investigated in depth, such as the controversial project to
enlarge Hungary’s Paks nuclear power plant.
The Commission is called upon to consider the
introduction of sanctions in cases where illegal State aid
has been granted, in addition to repayment of the original State
aid.