Atlantic Council

On March 26, European Commissioner for Competition Neelie Kroes spoke at the Atlantic Council, sharing her insights on economic competition at the European level, maintaining open markets during the financial crisis, and efforts to help spur global economic recovery.  The event, entitled “Mapping the Global Economic and Financial Future: Europe's Reform Course through the Crisis,” also featured introductory remarks by C. Boyden Gray, the former U.S. Ambassador to the EU, and a Q&A session moderated by Atlantic Council President and CEO Frederick Kempe.

Kroes argued that U.S. and European approaches to the economic crisis are increasingly converging, as both begin to recognize that a mix of stimulus and better regulation is likely the best way forward.  She commented that the EU is not as fractured as U.S. commentators sometimes think it to be, noting that all member states are committed to an "efficient single market that fosters equal opportunity."  Speaking specifically about remedies to the current crisis, Kroes said that until the banks are adequately addressed, no amount of government spending can fix the roots of the problem.  Some banks may be too big to fail, she stated, but none are "too big to restructure."

Kroes also spoke out against protectionism, saying that history has shown it to be a temporary measure that does not work beneficially in the long term.  She stressed that Europe believes in the power of free markets but feels they cannot be left on "auto-pilot."  Competitive markets offer the best chance of recovery from the present crisis, she added.

Kroes is the most senior European Union leader overseeing policy for state aid and bailouts for banks, insurance companies, and the automotive industry.  As head of the Competition Directorate General at the European Commission, she is responsible for promoting fair and open competition throughout the 27 member states of the EU.  With governments responding to the deepening financial crisis, Kroes has been proactive in ensuring that industrial and bank bailouts as well as various stimulus packages are beneficial to the overall functioning of the common market, especially in their use of state funds.  Her efforts in strengthening competition in Europe are crucial to promoting economic growth, job creation, small businesses, and the process of European integration.

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Media Coverage:

• "European Models for Economic Recovery" - Speech by EU Commissioner Neelie Kroes – European Union @ United Nations: Partnership in Action
• EU Competition Chief: Need Better Crisis Coordination With US – Dow Jones Newswires, Tom Barkley
• Neelie Kroes: European Models for Economic Recovery – Europa
• EU Commissioner Neelie Kroes Speaks on Economic Crisis – Federal News Service
• Ambassador's Corner: Weekly Message from Ambassador John Bruton – Delegation of the European Commission to the U.S.

Related Publication:

• G20 Report: Stimulus and Regulation Compromise Needed

Related New Atlanticist Analysis:

• Stay Out of the Protectionist Trap
• G20 Leaders Proclaim Consensus Without Achieving It
• Economic 'Iron Curtain' Dividing Europe?
• G7 Ministers Reject Protectionism While Governments Protect
• Protectionism Wave Crashing Over Global Economy
• Euro's Soft Underbelly Exposed by Financial Crisis

Related Events:

• West Stronger From Financial Crisis?

The Mapping the Economic and Financial Future Series is generously supported by Deutsche Bank.