Charting Europe’s Course: Insights from Mario Monti on Competition Dynamics in Dynamic Markets

Economist and Former European Competition Commissioner Shares Insights at CPI’s Conference in collaboration with SDA Bocconi School of Management
During CPI’s conference on “Dynamic Competition in Dynamic Markets: Charting the Path Forward?”, Mario Monti, economist and former European Competition commissioner, shared insights into Europe’s pivotal role in shaping competition dynamics in rapidly evolving markets.
Addressing a gathering of academics, legal experts, enforcers, and politicians, Monti expressed his pleasure at converging various aspects of academia, enforcement, and policymaking. He acknowledged the historical significance of Bocconi University’s attention to competition theory and practice, dating back to luminaries like Luigi Einaudi, whose work emphasized the centrality of competition in economic policy.

I perceive a significant risk that, in our legitimate pursuit of enhancing competitiveness within the European economy, we may inadvertently undermine one of its fundamental pillars: the European Single Market.”

Reflecting on his tenure at DG Comp in the early 2000s, Monti delved into the challenges posed by emerging sectors, particularly the “new economy” driven by digital innovations. He recalled dialogues with American counterparts under the George W. Bush administration, emphasizing the European Commission’s proactive stance in understanding and potentially intervening in new market phenomena.

Monti highlighted the delicate balance between competition policy and industrial strategy, cautioning against undermining the European Single Market in pursuit of competitiveness. He expressed concern over the temptation to use competition policy instruments, such as merger control and State Aid, to artificially create European champions, warning of potential backlash and fragmentation of the single market.
Moreover, Monti advocated for a renewed focus on enhancing the single market, particularly in sectors like telecommunications. He urged European companies to engage with national governments to eliminate barriers to a truly integrated market, emphasizing the importance of collective action in addressing Europe’s competitiveness challenges.
In closing, Monti’s remarks underscored the complexities of navigating dynamic markets while preserving the integrity of competition principles and the European Single Market.