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EU will be reluctant to change competition policy

Tuesday, January 29, 2019

Subject

EU competition policy.

Significance

The European Commission will decide next month whether to allow a merger between the railway engineering businesses of Siemens (Germany) and Alstom (France), two of the largest European industrial companies. The proposed merger and the Commission’s oversight of it have reopened a debate about the relationship between competition policy and the strategic competitiveness of European firms in the global economy, with the rise of China a particular concern.

Impacts

  • The United Kingdoms' exit from the EU will be a blow to the Nordic countries and Ireland, all sceptical of EU competition rules.
  • The transport market for new rolling stock and infrastructure may be hit by a global slowdown.
  • Siemens could seek a merger with Canadian transport company Bombardier if the proposed Siemens-Alstom merger is prohibited.

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