European competition policy - Peter Montagnon|Royal Institute of International Affairs

Nowhere is the tension between Brussels and individual member states more evident than in the area of competition policy. If the 1992 single-market programme is to become a reality, it is essential to have in force a strong and coherent European policy on competition; for if member states are allowed to pursue their own narrow economic and industrial interests, the European Community will be little more than a loose economic federation.;There is no doubt about the determination of the European Commission, and in particular of Sir Leon Brittan, the responsible Commissioner, to assert its independence and authority. In practice, however, political realities may often dictate a compromise. Where such compromise falls will help to determine the balance of power between Brussels and member states and, more generally, the future political shape of the Community as a whole.;The study examines the development of policy in four main areas: mergers and acquisitions, control of subsidies, the regulation of utilities, and the link between trade policy and competition policy. It tries to assess how well the Commission is equipped, in terms both of legal powers and of manpower resources, to deal with the issues involved. And, finally, it suggests that - on grounds of workload - there may be a case for creating a separate European authority to concentrate on merger policy. This is a controversial suggestion at present, but it is one which may have to be considered if a truly competitive enviroment for 1992 and beyond is to be secured.