European Firms Urge Scale-Up Amid Global Competition

Spanish Industry Minister Jordi Hereu emphasizes the need for European companies to scale up to compete globally. He encourages the EU to rethink its growth strategy, aligning with a report by Enrico Letta urging a reboot of the single market. Competition vs. merger regulation sparks debate.

European companies need to scale up to compete globally, according to Spanish Industry Minister Jordi Hereu. Speaking at an event organized by Spanish energy firm Naturgy, Hereu stressed the need for the European Union to reconsider its growth strategy. 'We need the necessary scale to compete globally,' said Hereu.

He referenced a 147-page report by former Italian Prime Minister Enrico Letta, presented in April, which called for a reboot of the EU single market. The report highlighted the need for European companies to grow in order to catch up with competitors in the U.S. and China, particularly in green and digital technologies.

The findings have ignited a debate on antitrust rules, with suggestions to bend them to allow mergers that could enable European firms to become large global players. However, EU antitrust chief Margrethe Vestager has rejected any changes in merger rules, advocating instead for fostering competition as the best route to creating strong international companies.