‘Give MEPs say on anti-trust rules’

Date: 18/07/02

By Peter Chapman

THE European Parliament should have more powers to shape EU competition policy, a leading MEP claims.

Christa Randzio-Plath, chairwoman of the assembly's economic and monetary affairs committee, says the European Commission should no longer ignore Parliament or member states in the EU's most high-profile areas.

'We want to have co-decision,' said the German socialist MEP, referring to the system that lets MEPs have a right to amend laws in certain areas of EU policy.

'The Parliament has to have a say...it's extremely important.'

She said that did not mean deputies should be allowed to vet mergers, joint ventures and cartels - the almost-exclusive reserve of competition chief Mario Monti and the European courts. Instead, Randzio-Plath said, they should be given the right to affect the way underlying policies are set.

She said the new power must cover the right to veto changes to merger rules and modernisation of the 30-year-old anti-cartel rule book known as 'regulation 17'.

Deputies must also have the right to scrutinise the 'block exemptions' the EU gives to certain sectors for agreements between rival firms that would normally fall foul of strict anti-cartel rules, she argued.

This is an area in which the Commission has the most power to go it alone.

Giving MEPs more say could cause problems for the Commission and member states in trying to approve new policies.

The political balance of power in the Parliament is often different from the Council of Ministers.

MEPs have also shown - for example, when they scrapped a controversial directive on take-over law last year - they are not afraid to scupper new legislation seen as vital by the Commission and governments, or to push a controversial line.

If Randzio-Plath gets her way, EU competition rules would contain broader references to the need to protect workers' rights and employment. Centre-right rivals, currently in the majority, said they do not support this stance.

But if future socialist-ruled Parliaments had greater powers, they may succeed in pushing through such reforms.

Randzio-Plath's demands are part of a broader report targeting the Convention on the future of Europe and the 2004 intergovernmental conference on changes to the EU's treaty rulebook.

But they are likely to come too late to give the Parliament a greater say in a current round of reforms to competition policy. Monti hopes to complete an overhaul of regulation 17 in the autumn. Radical changes to the way the Union vets mergers are also on the agenda.

In these areas, MEPs can issue reports and suggest amendments - but the Commission and member states are not obliged to take them on board.

The European Parliament should have more powers to shape EU competition policy, claims MEP Christa Randzio-Plath, chairwoman of the assembly's economic and monetary affairs committee.