The role of effective competition in action against global warming

At a conference of the Danish Competition Authority Speaking at a competition conference in Copenhagen recently, the Dane Margrethe Vestager, Vice-President of the European Commission, discussed the importance of an effective
competition in the extensive measures that are forthcoming to reduce
global warming. Vestager said, among other things, that it was not unusual for viewpoints to emerge about
that it is now necessary to strengthen cooperation rather than competition.

Such views would, however, conceal the
involves a serious misunderstanding of the nature of effective competition. Effective competition
will help us to achieve our common goals, increase innovation and ensure that
that companies work for all of us, not just for themselves.

„I think it's not too much of a stretch to say
about these green and digital transitions as our generation's peace project. Like
The founders of the European Union knew, we know that there is no future without it.
We are changing the way we do things. And that involves a huge amount of work.
in mobilising the whole community. It is urgent that Europe and indeed the whole world
the world, work together to create the new world we want.“ Vestager said in her speech, but she also chairs the European Commission's Competition Committee. 

Is it time to put competition aside?

Vestager discussed the role of effective competition in the fight against the climate crisis and raised questions that many might ask themselves. 

„It should therefore come as no surprise that difficult questions
raise the question of where competition actually fits into this equation. It shouldn't
It is surprising that people ask themselves whether the time has not now come to lay
Putting competition aside and starting to work together instead.“ said Vestager but added. 

„But this question encapsulates a serious misunderstanding of the nature
Competition. It may be that in the dictionary there are cooperation and competition.
contrasts. But in the world we live in, competition helps us to achieve common
objectives. Competition contributes to better utilisation of resources which is beneficial to consumers,
for the benefit of business and society as a whole. It promotes innovation, both when
relates to products and services. And it contributes to companies operating in such a way that
that it is in all our interests, not just the companies themselves.“ 

Businesses and households should not also pay for weak competition.

Vestager also said in her speech that it was important that households and businesses did not have to suffer from weak competition, especially during a pandemic. 

„At times like these, when businesses and households see ahead
to the increased expenditure of adapting to this green and digital future, they
I don't like having to pay for poor competition. It has already been stretched.
deep into taxpayers' pockets in countermeasures. The companies that receive that money
They shouldn't take more than they need.“ said Vestager, but Her full speech can be accessed here..