McCreevy to get tough on protectionism

EU INTERNAL Market Commissioner Charlie McCreevy is expected to declare all-out war today on France, Spain and Poland and other countries trying to block foreign takeovers.

He will accuse them of betraying their workers, investors and savers and taking the route to economic stagnation and decline when he addresses the London School of Economics today.

“Does anyone really think that I am going to turn a blind eye to the cosy old-boy networks between politicians and managers of companies? If they do, they are living in a fool’s paradise,” his script states.

He has already demanded answers from France, Spain and Poland following government interference in potential takeovers. But today’s speech reflects a new determination by the commission as a whole to fight protectionism in the EU.

“Let nobody be in any doubt: Where artificial barriers remain or new ones are introduced, I will go after them; where competition law is not complied with, authorities at national and European level will act; where regulation is not complied with, infringements and prosecutions will follow,” he will say.

“The time for compromise and shilly-shallying is over. The competitiveness challenge in Europe is too big and too urgent.”

European Commission members including President Jose Manuel Barrosso, Joaquin Almunia in Economic and Monetary Affairs, Neele Kroes in Competition and Peter Mandelson in Trade are united with Mr McCreevy on the issue.

The anti-foreigner sentiment in several member states is the antithesis of what the EU is all about. It might be understandable from workers whose jobs are threatened, but not from governments, he will say.

“It is backward and dangerous economically, and cowardly and unacceptable politically.”

There will be huge opportunities for those prepared to adapt and prepare for the globalised word of open and competitive marketplaces, he will say.

“But not a day goes by without European governments commenting on, interfering in or trying to bluntly block the free flow of capital. Be it banks in Italy or Poland, a steel company in Luxembourg or energy companies in Spain and France.”

He has demanded an explanation from France of its role in blocking the takeover of the utilities company Suez by Italy’s Enel. He has also been in touch with Spain about its attempts to stop the take over of the power company Endesa by Germany’s Eon, and with Poland over their efforts to protect their banking sector.

Mr McCreevy’s portfolio includes the free movement of capital and his brief is to promote and protect this.