The Committee on Economic and Monetary Affairs (ECON) discuss competition policy with Margrethe VESTAGER, Executive Vice-President, in the European Parliament in Brussels. MEPs are likely to quiz her on the implementation of the Temporary State Aid Framework, applicable since March 2020 in the response to the COVID-19 crisis.

Brussels

exchange of views

NIEDERMAYER, Luděk (EPP, CZ)

Committee on Economic and Monetary Affairs

VESTAGER, Margrethe (DK, CE)

GARICANO, Luis (Renew, ES)

AVRAM, Carmen (S&D, RO)

TINAGLI, Irene (S&D, IT)

Coronavirus outbreak (T)

GRUFFAT, Claude (Greens/EFA, FR)

economic situation in Europe (T)

Economic impact and the response to the COVID-19 pandemic: extracts from the exchange of views

SOUNDBITE (English), Irene TINAGLI (S&amp;D, IT), he Commission has approved close to 2 trillion euros in state aid. However, they tell also show another aspect that must be taken into account : the firepower that member states are able to deploy to support their respective productive system is clearly not the same for all the countries. And the volumes of public aid authorized so far in each country is not in line with their respective share of the European economy. 

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age, The pandemic has caused a lot of change, but also a lot of suffering in the most hard hit member states. Of course, many, many people have lost their lives. Thousands have lost their loved ones. And also in the lock-down you see that for many people, the social consequences, they are immense. I think it is very important that now we still have sort of this eye for the peasant, while, of course, not only rebuilding, but also renewing our societies and our economies in the weeks and months to come, with the perspective of our green transition and the digital transition as well. 

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age, The new solvency instrument:  this will help match recapitalization needs of otherwise healthy companies that has been put at risk because of the lockdown and this will be targeted for member states most in need. 

SOUNDBITE (English), Lud&#283;k NIEDERMAYER (EPP, CZ),  I wonder how to make sure that this priority will be executed in line with our support for competition at the market and the transparency of economic policies. And also how to make it consistent with our long term strategy of the support of a fairer and mutually beneficial trade in the world. 

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age, Both within and between member states, not all businesses can get a capital injection. And this is why we have two things to consider. First, of course, taxpayers should be remunerated, but they should also be an incentive for the state to step out again and for the businesses to compete on their own, so to speak. The second thing is that if you get a capital injection and your competitors don't. If you are a large company, well, we have to consider how to remedy potential distortions of competition in that market. 

SOUNDBITE (English), Carmen AVRAM (S&amp;D, RO), Would you welcome an EU digital taxation proposal by the end of this year? Do you think it's feasible? Do you think COVIT-19 crises increased the urgency of this kind of initiative?

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age,  On the question of own resources, I agree. It is needed with more own resources for that for the Commission. I think that is to some degree separate from the discussion about digital taxation. Because digital taxation is important no matter what you think about own resources or not. Now you see how public offers, how state, how taxpayers are supporting businesses. And I think that makes it even more urgent than not just most businesses pay their taxes, but that all businesses pay their taxes.

SOUNDBITE (English), Luis GARICANO (RE, ES), On the question of own resources, I agree. It is needed with more own resources for that for the Commission. I think that is to some degree separate from the discussion about digital taxation. Because digital taxation is important no matter what you think about own resources or not. Now you see how public offers, how state, how taxpayers are supporting businesses. And I think that makes it even more urgent than not just most businesses pay their taxes, but that all businesses pay their taxes.

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age, Equity is new. It takes expertise to be able to do it and of course, to be able to do it fast. And I would very much hope that we could work together to make sure that these things they are processed as fast as possible. You know, they usually say that late justice is no justice. I think kind of the same thing applies here, that if the help comes too late, well, then it is literally very little or no help.

SOUNDBITE (French), Claude GRUFFAT (Greens/EFA, FR), What if certain states are using the crisis to strongly financially support polluting industries? An European green policy implies ecologic investments to take care of the environment urgency. My question concerns the fact that there is no green conditionality on the state aide post crisis support. Is this due to some technical reasons? Or there is lack of political will? 

SOUNDBITE (English), Margrethe VESTAGER, Executive Vice-President of the EC in charge of Europe fit for the Digital Age,  We have been considering very carefully to what degree - if any- we can also push this when it comes to state aid. But the fundamental thing here is the legal basis that we are using. This is, of course, a legal basis of extraordinary circumstance that allows us this flexibility in state aid. And the point is to say this is aid given in order for businesses to be able to sustain. 