Europe Needs Competition More Than Industrial Giants
The backlash against the Siemens-Alstom ruling threatens the EU’s biggest strength.
She’s right that competition comes first.
Photographer: Aris Oikonomou/AFP/Getty Images
Many of Europe’s politicians are far from impressed with the European Commission’s recent ruling against the proposed rail merger of Alstom SA and Siemens AG. Some are now calling for the EU to change its whole approach to competition policy. What they want instead is “industrial policy” — a strategy that dethrones competition as a goal and promotes European economic champions.
Competition Commissioner Margrethe Vestager was right to block the merger, and her critics are mistaken. The last thing Europe’s consumers need is EU firms with greater monopoly power, especially if they’re shielded from foreign as well as domestic competition. The best spur to economic growth and higher living standards in Europe is rivalry within the EU’s single market.