Competition chief in state aid warning

Date: 13/06/02

By Peter Chapman

MARIO Monti, the competition commissioner, has warned the countries hoping to join the European Union that they must curb the urge to dole out state aid.

Speaking ahead of an anti-trust conference in the Lithuanian capital of Vilnius next week (16-17 June), Monti said significant progress had been made in efforts to launch effective competition and merger control in the applicant countries.

But he said: 'As for state aid, progress is generally slower. Most of the problems stem from this field.' He added that some Eastern bloc countries persist in giving industry generous tax breaks that 'clearly must be terminated'.

Aid to sensitive areas such as steel was also a headache, he said.

The EU hopes to wrap up the competition round of entry negotiations with candidate countries before the Copenhagen summit in December.

So far, only Lithuania, Latvia, Estonia and Slovenia have completed the chapter, which Monti said was 'not a subject that is peripheral to becoming a member'.

Competition Commissioner Mario Monti has warned the countries hoping to join the European Union that they must curb state aid.