ERT believes that the formation of a single European market leads to growth and innovation. In particular the benefits to consumers should not be underestimated. As market conditions continuously evolve, it is important that EU Competition Policy is also able to evolve and respond to the challenges presented by the global megatrends. Globalisation, technological changes, as well as the emergence of new economic powers, are some of the challenges that business and society face in the European Union. In addition, some of the successes achieved by EU Competition Policy in ensuring the good functioning of markets could be jeopardised in times of economic crisis.

ERT has commissioned a report, conducted by Professor Lars-Hendrik Röller, the former chief economist for DG Competition, with the overall objective of identifying areas where reform may be necessary to ensure that the EU Competition Framework can work effectively in the future. Following a systematic examination of EU Competition Policy, including the major reforms and initiatives undertaken in the last few years in the areas of merger control, antitrust and state aid, this report identifies four areas where we agree there is a need for reform for the future benefit of consumers and business.

In this paper ERT repeated its earlier messages on the importance of improved predictability and accountability in EU Competition Policy…

As a follow-up to the ERT paper of December 2000, ERT commissioned research to test and, where appropriate, deepen the main arguments towards the need to improve predictability and accountability in EU Competition Policy.

(The research was subsequently updated by Professor Voigt and published in book form (ISBN 1402030894)).

The Working Group's response to the Commission's Green Paper on Merger Control reflected key themes in the ERT Proposals for Reform of Competition Policy (December 2000). In its conclusion, it underlined the central aspects to a successful review of the Merger Control Regulation:

- Given the inherent uncertainty in the economic analyses required in the application of the Merger Regulation, it is vital that legal tests and criteria used in the application of the Regulation provide the maximum degree of legal certainty. The extent to which tests such as the “dominance test” have diverged from the jurisprudence of the Court gives cause for concern.

- The possibility of such divergence has increased as Commission decisions are not subject to judicial oversight that, for practical purposes, can be regarded as effective.

- Ultimately the core questions which need to be addressed are those of accountability and of due legal process.

- The economic analyses required in application of the Merger Regulation are forecasts. It is therefore important that, wherever possible, they be subjected to some kind of ‘reality check’. The proposal for sectoral reviews to consider the effect of decisions based on these analyses offers the possibility of just such a check.

ERT believes that if the EU is to meet the goal set at the Lisbon European Council meeting (March 2000) to become "the most competitive and dynamic knowledge-based economy in the world", then EU competition policy needs to operate more effectively in today's and tomorrow's markets. The ERT paper "Proposals for Reform of EU Competition Policy", presented to the then European Commissioner for Competition, Mario Monti, indicated how this might be achieved.

ERT focused on three broad issues:

- a new approach to the analysis of competition, in particular the criteria for defining markets in relation both to geography and to products (including services);

- measures to enhance the predictability of competition processes generally and in the context of the new decentralised application of competition law;

- review of various national systems and more international co-operation so that European companies enjoy a more equal treatment around the world.