CC report: The states sometimes vitiates competition of certain markets

Romania has a rather opaque banking system, preferential contracts in the energy sector, and markets which were liberalized only formally, with a very vulnerable retail , and unjustified barriers for entering the pharmaceutical market, are some of the main conclusions of the "Competition Policy in Key Sectors" report, compiled by the Romanian Academic Society (SAR).

"In Romania, the state is the one that sometimes vitiates competition in certain economic fields, and the adjustment to the crisis is more difficult when markets are not functional. We have a problem with the functioning of certain markets in Romania," Bogdan Chiritoiu, President of the Competition Council (CC), said yesterday.

Based on investigations carried out by the competition authority, SAR analyzed the way competition works in seven economic sectors: energy, retail, pharmaceuticals, banking, liberal professions, taxis, and concession. "There are two reasons for which we have chosen these seven sectors. As they claim a large share of the economy, the influence can be harmful at the macroeconomic level, especially through the effects propagated in other sectors," Chiritoiu said.

The Competition Council indicated that the biggest problem in the banking system is fees for anticipated loan repayment, which are real barriers for the final consumer.

In the Romanian energy sector, more competitive than those in other European markets, the initiative of establishing two energy giants risks limiting competition. "The Competition Council could reject the proposal for establishing the two energy companies, if our investigation shows that a few essential conditions are not met: those related to vertical integration, those regarding the risk of cross subsidies between entities, and those on economic concentration," Chiritoiu said.

standard.money.ro