Europe to expand its powers over takeovers

Peter Rodgers has a rare interview with the EC's mergers man

Karel Van Miert, the European Commission competition commissioner, has been set the task of producing draft proposals for an early increase in the number of takeover and merger cases vetted by Brussels rather than national bodies such as Britain's Monopolies and Mergers Commission.

Mr Van Miert said yesterday in an interview with the Independent that he hoped to be ready with a draft of the new proposals by the end of the year. His decision to raise the issue again, after the Commission's earlier unsuccessful attempts to push through an increase, is bound to annoy the British Government at a time of high political sensitivity over encroachments by Brussels.

Mr Van Miert, a Belgian socialist, acknowledged he could run into political problems over a larger role for the commission. He said: "Some governments are reluctant to enter the debate because, almost immediately, it will be transferred into a debate about rendering additional sovereign rights to Brussels."

But he refused to point the finger at the UK and said he had already had "very good discussions with Michael Heseltine, President of the Board of Trade, about all this". In return for an increased role for Brussels, Mr Van Miert promised to beef up the existing procedures for referring Brussels merger cases back to national competition authorities, where appropriate, as well as other improvements such as greater transparency. The commission also plans to introduce similar referral back procedures for cartel investigations.

The key move proposed by Mr Van Miert is to reduce the size threshold at which mergers and takeovers become the responsibility of the European competition authorities rather than national bodies. He claimed widespread backing from European industry for a move to extend the so called one- stop shop in which, once a case falls within Brussels' remit, it cannot be tackled at the same time by the national authority.

Mr Van Miert said: "We, and a considerable part of industry, would like the threshold lower." The one-stop shop, introduced in 1989, gave legal certainty to a company once it was accepted that a case fell within the commission's remit, "so you don't have trouble with the national authorities any more," he said.

Nine out of ten cases were cleared within a month. New data from the commission shows that last year it handled a record number of merger control cases, up to 95 from 48 in 1993 - although competition officials concede resources are now stretched. Mr Van Miert said if the debate was only about the merits of "lowering the threshold on the one hand and beefing up the procedure to refer back to the national authority on the other, I think we could convince most of the governments".

However, he acknowledged the political difficulty and admitted further sounding out of governments is needed. He also refused to put numbers on the new threshold because he first had to find out what ministers would regard as acceptable.

The commission is responsible for vetting mergers if the worldwide combined turnover is more than five billion ecu and if turnover within the union is more than 250 million ecu. There is a let out if more than two thirds of turnover is within a single member state.

Among measures to improve transparency of procedures, Mr Van Miert suggested that companies offering a concession to the commission in order to get a deal approved should announce the proposals at least one month before the end of the vetting timetable. He cited a case involving Procter & Gamble in which the company came up with concessions just before the deadline for the commission to take a final decision. An earlier deadline would allow other interested parties to express their opinions, he said. Although Mr Van Miert wants to extend the commission's influence over merger controls, he came down strongly against a German-influenced plan to create a separate European cartel office outside the commission itself. He said he understood the German view, based on its successful experience with a national cartel office, but added "can you imagine 15 governments sitting around a table talking about the creation of a European cartel office?" Rather than producing a race horse "you are going to have a dromedary," he added.

Turning to the commission's powers to block illegal state aid, Mr Van Miert gave a clear hint of a softening of the commission's line over a controversial Irish government plan to rescue Cork-based Irish Steel with a IR£50m support package. He said: "It was understood in the past that countries like Portugal, Greece and Ireland, where there is just one small steel company, should be looked at with some flexibility."

British Steel is strongly opposed to a bail out and is thought to be backed by the Government, whose position is however complicated by the possible effect on Anglo-Irish relations at a sensitive time in the peace talks.

Mr Van Miert said that before he could make a decision he had to await a consultants' report on whether Irish Steel would return to viability as a result of the aid package. The Irish government is seeking a private sector investor to help allay Brussels' concerns.

The commission's as yet unpublished 1994 competition policy report reveals that new measures are planned to recover illegally disbursed state aid.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
The Doctor and Clara have their first real heart to heart since he regenerated in 'Deep Breath'
TV
Arts and Entertainment
Jeremy Clarkson, left, and Richard Hammond upset the locals in South America
tvSpoiler alert: It has been talked about for months
Arts and Entertainment
James Hewitt has firmly denied being Harry’s father
arts + ents
Arts and Entertainment
Jamie Oliver
filmTV chef Jamie Oliver turned down role in The Hobbit
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
news
News
Sir James Dyson: 'Students must be inspired to take up the challenge of engineering'
i100
Arts and Entertainment
Man of action: Christian Bale stars in Exodus: Gods and Kings
film
Life and Style
Apple showed no sign of losing its talent for product launches with the new, slightly larger iPhone 6 making headlines
techSecurity breaches and overhyped start-ups dominated a year in which very little changed (save the size of your phone)
Arts and Entertainment
Catherine (Sarah Lancashire) in Happy Valley ((C) Red Productions/Ben Blackall)
TV
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Selby Jennings: Quantitative Research | Equity | New York

Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

Selby Jennings: SVP Model Validation

Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

Day In a Page

A timely reminder of the bloody anniversary we all forgot

A timely reminder of the bloody anniversary we all forgot

Who remembers that this week we enter the 150th anniversary year of the end of the American Civil War, asks Robert Fisk
Homeless Veterans appeal: Former soldiers pay their respects to a friend who also served

Homeless Veterans appeal

Former soldiers pay their respects to a friend who also served
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing

Scarred by the bell

The downfall of the TV star charged with bar stabbing
Why 2014 was a year of technological let-downs

Why 2014 was a year of technological let-downs

Security breaches and overhyped start-ups dominated a year in which very little changed (save the size of your phone)
Cuba's golf revolution: But will the revolutionary nation take 'bourgeois' game to its heart?

Will revolutionary Cuba take 'bourgeois' golf to its heart?

Fidel Castro ridiculed the game – but now investment in leisure resort projects is welcome
The Locked Room Mysteries: As a new collection of the genre’s best is published, its editor Otto Penzler explains the rules of engagement

The Locked Room Mysteries

As a new collection of the genre’s best is published, its editor explains the rules of engagement
Amy Adams on playing painter Margaret Keane in Tim Burton's Big Eyes

How I made myself Keane

Amy Adams hadn’t wanted to take the role of artist Margaret Keane, because she’d had enough of playing victims. But then she had a daughter, and saw the painter in a new light
Ed Richards: Parting view of Ofcom chief. . . we hate jokes on the disabled

Parting view of Ofcom chief... we hate jokes on the disabled

Bad language once got TV viewers irate, inciting calls to broadcasting switchboards. But now there is a worse offender, says retiring head of the media watchdog, Ed Richards
A look back at fashion in 2014: Wear in review

Wear in review

A look back at fashion in 2014
Ian Herbert: My 10 hopes for sport in 2015. Might just one of them happen?

Ian Herbert: My 10 hopes for sport in 2015

Might just one of them happen?
War with Isis: The West needs more than a White Knight

The West needs more than a White Knight

Despite billions spent on weapons, the US has not been able to counter Isis's gruesome tactics, says Patrick Cockburn
Return to Helmand: Private Davey Graham recalls the day he was shot by the Taliban

'The day I was shot by the Taliban'

Private Davey Graham was shot five times during an ambush in 2007 - it was the first, controversial photograph to show the dangers our soldiers faced in Helmand province
Revealed: the best and worst airlines for delays

Revealed: the best and worst airlines for delays

Many flyers are failing to claim compensation to which they are entitled, a new survey has found
The stories that defined 2014: From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions

The stories that defined 2014

From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations

Disaster looming? Now you know where to head...

Which British city has become the first to be awarded special 'resilience' status by the UN?