Competition policy. 25th report 1995

In adopting the report by Mrs Ludivina GARCIA ARIAS (PSE, E) on the XXVth Annual Report on Competition Policy, Parliament reaffirmed the importance of the Commission's role as guardian of the Treaties and representative of the Union's general interest. It rejected therefore categorically the proposal made by the government of the Federal Republic of Germany to create an ad hoc body which would be exempt from any democratic control. As regards State aid, Parliament called on the Commission to oblige the Member States to meet their obligations to give notice of any plans to grant aid, and to prohibit the granting of any aid which was not compatible with the Common Market. Parliament called on the Commission to apply rigorously, even after 2002, the relevant rules concerning the allocation of State aid to the iron and steel sector and to prevent new derogations from Article 95 of the EC Treaty. Furthermore, Parliament noted with concern the growing disparities between the central and peripheral regions as regards the increase in state aid to undertakings in the wealthy regions, a trend which is not in accordance with the goal of cohesion. As regards monopolies, Parliament pointed out that the deregulation of a sector does not necessarily entail, or prevent, the privatization of the undertakings responsible for providing services of general interest. However, it took the view that if an undertaking belongs in part to the government, the management authority must be clearly separate from the authority responsible for the exercise of ownership, failing which competition could be subjected to unwanted effects. �