Central, Northern Countries Push Back On Franco-German Merger Drive

By Magnus Lund Nielsen

(EurActiv) -- A group of countries from Northern and Central Europe is urging the Commission not to give in to pressure to loosen competition rules as part of the bloc’s competitiveness drive.

The European Commission is facing growing pressure – particularly from France and Germany – to relax EU competition rules in order to allow the emergence of “European champions” capable of competing with large companies from third countries.

But a group consisting of Czechia, Estonia, Finland, Ireland and Latvia is pushing back. “Instead of loosening merger control rules, we must focus on ensuring effective competition,” they write in a joint non-paper seen by Euractiv.

“Europe’s global strength comes from open and contestable internal markets, not from companies that have been allowed to concentrate national or EU markets at the expense of competition,” the non-paper reads.

The countries fear looser rules could favour industrial giants in larger EU economies. “True European Champions are those undertakings that succeed through efficiency, innovation and fair competition,” the group writes. “Size in itself should not be the primary objective.”

The non-paper is due to be presented on Thursday when European economy ministers meet in Brussels to discuss competitiveness.

Sweden will also support the paper verbally, a Swedish official said on Wednesday.

In 2019, Margrethe Vestager, then competition commissioner,  blocked a merger between French Alstom and German Siemens citing risks to internal competition and European consumers.

• Nikolaus Kurmayer contributed to this report