An old buzzword is back in Brussels and European capitals: competitiveness. It also looks likely to become the main driver of the new Commission’s agenda. Preparatory conceptual work is already ongoing, with two flagship reports by Enrico Letta and Mario Draghi, commissioned to outline policy options for the single market and European competitiveness.
In this policy discussion, it would be helpful to be more precise about what we mean by competitiveness. Because the direction of some emerging policy proposals looks dangerous. There is a narrative that Europe needs to promote its own champions who, by acquiring scale, will be able to compete with American and Chinese rivals.
In this essay, I argue that promoting scale is a dubious goal, of questionable value, with potential negative consequences for competition and innovation.
Read on FEPS website: https://feps-europe.eu/on-the-dangers-of-promoting-scale-in-the-name-of-competitiveness/
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