Some existing instruments must be adjusted or updated

These last two years have been exceptional, requiring exceptional measures. Europe has suffered from the global economic crisis, but the single currency, a strong single market, a strong system of social protection and healthy public finances have cushioned the shock and enabled it to react promptly. If the effects of the crisis will be felt long, including through increasing unemployment rates, the first signs of recovery appear on the horizon.

However, the crisis has also updated the weaknesses of the European economy and its regulatory framework, making us aware of the need to further strengthen its pillars. This is particularly the case of competition policy, too often decried by France while it is in fact a cornerstone of economic regulation. This is what I said in my report adopted in Strasbourg.

The rules governing State aid properly to take emergency measures when public intervention is clearly necessary. However, should always keep in mind that grants are likely to unduly distort competition while increasing budget deficits and public debt, which included public expenditure allocated to priorities such as education, health care, innovation and environmental objectives. That is why the lower euro granted as State aid must be weighed very carefully, in the interest of taxpayers and consumers and citizens.

In this context, there is a comprehensive assessment of rescue and recovery measures. The effectiveness of State aid must be rigorously assessed against the objectives set, including the Green stimulus and investment in innovation. An ex-post evaluation is all the more necessary that many measures had been taken in the rush for which there is to put an end to the State aid mechanism. French banks prides itself on having better withstood the crisis and thus avoided a costly plan to rescue the French taxpayers; they cannot therefore that rejoice to see the Commission in Brussels to ensure that their European competitors benefit not of aid to disguise structural problems, and require either refund or the assignment of activities, as ING was forced.

However, another subject of concern relates to important nationalist and protectionist reflexes triggered by the crisis within the European Union. Each country adopted its own package of measures, coordinated and that, in some cases, be counterproductive. Such was the case in the automotive industry, for the defence of which the French Government took postures in contradiction to the vocation European and even world, its national champions of the sector. Europe must learn, through the crisis, how to respond in a concerted manner. Protectionism and the fragmentation of the internal market will benefit to anyone and will that weaken the position of Europe in the global economy.

The proper functioning of the single market is the guarantor of a healthy economy. This is why it must put an end to the anti-competitive practices that undermine economic recovery. The strict application of the competition rules is essential. Some existing instruments must be adjusted or updated. The European Parliament will take position on all the proposals submitted on the subject. Because, in a globalized economy, economic policies should be subject to democratic control. The European Commission will take the initiative, but European competition policy will gain legitimacy through the codecision procedure which gives democratic influence increased in the European Parliament.