Libertas.org

Irish-based European think tank - the Libertas Institute - has expressed outrage at French President Nicolas Sarkozy's move to drop the commitment to "free and undistorted competition" from the text of the "Reform Treaty/ EU Constitution - a reference which has been included in every treaty since the founding Treaty of Rome in 1957.

The removal of this commitment raises serious questions about the EU's ability to tackle monopolies, pursue anti-trust measures and challenge the misnomered  "national champions" -  the incumbents much beloved by Monsieur Sarkozy's predecessor. The French President is also seeking to drop the EU's commitment to price stability.

Paul McDonnell, founder of the Open Republic Institute and a Libertas advisory board member has warned that the dropping of commitments to price stability could mark the death knell of the Euro. "If the commitment to price stability is dropped, we could see people queuing up to exit the Euro".

Telecoms entrepreneur and Libertas founder Declan Ganley has strongly criticised Sarkozy's action:

"This is a move to bolster protectionism, monopoly and so called 'national champions' - a sure way to crush innovation, entrepreneurship and competition to the benefit of incumbency over entrepreneurial growth companies.  It should be remembered that small and medium sized companies collectively account for most European job creation -  they are also Europe's only hope of being competitive at the onset of the 21st century.  Any reversion to protectionism will end up being an unmitigated disaster for European competitiveness, international credibility and economic prosperity."

Ganley also stated: "This is all the more shocking coming from Sarkozy who only some weeks ago promised to end pandering to vested interests.  The veil has dropped to reveal something very worrying.  Protectionism is bad wherever it comes from – it is even more sinister when it is something proposed by the right rather than the usual reactionaries of the left."

He concluded: "This effort to take away Europe's stated commitment to undistorted competition must be vigorously opposed."

ENDS