Sant decries lack of accountability in EU’s sensitive competition directorate

Labour MEP Alfred Sant has criticised state aid rules applied in the European Union which he claims are not suitable for small, peripheral or isolated regions and island states – like Malta.

The former prime minister was addressed a plenary session debating the European Commission’s annual competition report for 2014, for which Sant is shadow rapporteur on the review of the work of former competition commissioner Joaquin Almunia (2009-2014).

“State aid rules within the European Union are being applied to peripheral or isolated regions and islands as if they belong to the mainstream and better endowed centres of the Union. This approach cannot be justified by the argument that structural and cohesion funds already compensate for the disadvantages with which these territories are burdened. They do not,” Sant said.

The MEP said sectors such as communications infrastructure, aid to SMEs, energy, the protection of traditional small scale activities in small islands like Malta and Gozo did not have the same “systemic significance” as others had in Europe’s wider single market.

“To apply to these regions the same treatment as for the centre of Europe, is helping to increase structural disparities that already exist between the centre and the periphery of the European Union,” Sant said.

The annual competition report refers to special consideration being made to the social and economic impacts on peripheral and insular regions of the EU.

Sant also said the reports raises concerns about the powers and methods of the Director-General for Competition.

“Its remit amounts to one of the most powerful tools of the EU... the DG has the power to set and change market rules... It can – does – issue orders to governments, corporations big and small, regarding decisions they have taken or need to take.

“It is run by competent technocrats operating under the overall mantle of the Commission. In arriving at decisions, the Director-General carries out inquiries and investigations, following an opaque process of negotiations that happens mostly behind closed doors.”

The Maltese MEP called for an urgent review of the DG’s powers and modus operandi. “Political, economic, social, personal, national factors enter into play. In this, being big is of greater account than being small. There is little transparency, hardly any accountability. More: there is an overlap between those whose job it is to set the rules, and those implementing them. The two roles – of setting rules and of implementing them – should be institutionally separate and both should adopt more transparent methods.”