Economic Competition: Friend or Foe of the Planet?

Historically a driver of European integration and a pillar of the Union’s economy, competition policy was supposed to allow the EU to balance the benefits of free market with the protection of the democratic fabric of society from unchecked corporate power. It has not succeeded. Quite the opposite, it has allowed massive levels of industrial consolidation across the economy.

Now, this longstanding pillar of EU policy urgently needs revision. 

First, public coffers alone can’t cover the huge investment needs of the Green Deal and the REPowerEU plan – around 700 billion euros a year until 2030, with an additional 92 to address the objectives of the Net-Zero Industry Act.

Second, the global competition powered by the strategic rivalry between the US and China – two heavily subsidised economies scrambling for supremacy over green technologies and industries – intensifies the growing pressure on the EU and its member states. 

The EU seems to have picked up the challenge by putting new emphasis on “competitiveness” – including through a widely discussed report by former Italian Prime Minister Mario Draghi. But is this renewed drive for competitiveness compatible with Europe’s climate ambitions and a livable future? 

With this series of articles and interviews, co-curated by Michelle Meagher and Edouard Gaudot, the Green European Journal explores the complex answers to one simple question: can economic competition and the EU policies designed to regulate it serve the transition to a sustainable economy?