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Deputy Prime Minister Gowin held a meeting with the Vice President of the European Commission Margrethe Vestager on the challenges of maintaining competitiveness of the EU and the effects of the Covid-19 pandemic

21.10.2020

Restoration of the equal competition conditions on the digital platforms market between European as well as non-European actors; the effects of the Covid-19 pandemic; solutions allowing for fair competition with entities from third countries in key sectors of the economy and the protection of the Single Market – these are the key topics discussed during the first conversation held by the Deputy Prime Minister Jarosław Gowin as the new Minister of Economic Development, Labour and Technology with Margrethe Vestager, the Vice President of the European Commission.

Deputy Prime Minister on a meeting with Margarethe Vestager

Deputy Prime Minister Gowin notes:

The Polish government believes in a strong Single Market, where both clients as well as citizens operate, without being restricted by barriers, and the market alone creates fair conditions for building competitiveness in relation to their competitors from third countries. However, considering the fast changing global and digital markets, the competition policy seems too slow and inefficient with regards to restoring competitiveness.

He adds:

Only an assertive industrial policy guarantees the proper functioning of the Single Market. It means that we need instruments which will allow us to become competitive against businesses from third countries on equal terms  – that pertains to the conditions of state aid, the merger of enterprises as well as environmental issues, the protection of labour conditions and the safety of products. We must improve the enforcement of these regulations and introduce new protective instruments.

Ideas for enhancing the EU competitiveness

The EC is currently developing solutions aiming to enhance competitiveness of the European economy against businesses located outside of Europe. The proposed solutions include, for instance, the following:

establishing the so-called New Competition Tool and an ex ante instrument under the Digital Services Act, which serves to update the competition policy tools in the digital area;

  • modernisation of the European Union’s regulations related to controlling company mergers, taking into consideration the intervention of third countries;
  • elimination of excessive market strength of large technological companies;
  • strengthening European joint ventures;
  • strengthening the consultancy and the role of the COMPET Council in the decision-making process related to the competition policy area.

Deputy Prime Minister also mentioned the situation of the European Union related to the pandemic in EU Member States.

In the face of the second and seemingly much more difficult wave of the pandemic, we appreciate the fact that we were able to extend the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak in accordance with the direction selected by Poland which allow the Member States to use the full elasticity provided for in the state aid regulations for supporting the economy in the context of COVID-19 epidemic.

The development of the pandemic, not solely in Poland, shows that this requirement was deeply substantiated. Everything points towards the fact that the “second wave” of the pandemic will have a stronger and more lasting effect than previously thought. The market explicitly indicated that there is a growing need for government assistance and that is why I hope that the Commission’s services which monitor the situation will take appropriate steps to extend the possibility for granting support in due time and in advance. Although I wish to state clearly that I wish a situation like this had never occurred, as that would mean that the pandemic was defeated and that the economy could be rebuilt, which is what we all wish for.

– stressed Jarosław Gowin.

The European Commission has extended the Temporary Framework by six months – until 30 June 2021, with the possibility of further extension.

EU on the verge of the pandemic crisis.

Recovery and Resilience Facility - RRF was established as the European Community’s response to the crisis caused by the COVID-19 pandemic. It aims to help the Member States alleviate the economic and social consequences of the coronavirus pandemic, and what is more important, to build resilience of the European economy in the face of the future crises and to create jobs.

The Budget of the Recovery and Resilience Facility

The total amount of the Recovery and Resilience Facility – EUR 672.5 billion (at fixed prices as at 2018), out of which:

  •  EUR 312.5 billion for non-repayable support (grants)
  •  EUR 360 billion for loans

The total allocation for Poland for:

  •  grants – EUR 23.1 billion, if the European Commissions prognoses for the GDP in 2020 and 2021 are confirmed:
  •  loans – EUR 34.2 billion (the maximum amount for Poland)

The funds under the new instrument will be disbursed based on the National Recovery and Resilience Plan, which will propose a program of reforms and public investments:

  • for the implementation of national priorities resulting from the European Semester (the CSR covers a wide range of recommendations, i.e. public finances, reforms of healthcare, labour market, innovations, qualifications, investment policies, business environment)
  • for increasing the economy's resilience to potential crises, and
  • contributing to green and digital transformation.
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