European companies call for scaling in the face of global competition

European companies need to grow to compete globally, according to Spanish Industry Minister Jordi Hereu. Speaking at an event hosted by Spanish energy company Naturgy, Hereu stressed the need for the European Union to reconsider its growth strategy. “We need the necessary scale to compete globally,” Hereu said.

He cited a 147-page report by former Italian Prime Minister Enrico Letta, presented in April, that called for a reboot of the EU’s single market. The report stressed the need for European companies to grow to catch up with competitors in the US and China, particularly in green and digital technologies.

The results have sparked a debate over antitrust rules, with suggestions to bend them to allow mergers that could enable European companies to become big global players. But the head of the EU’s antitrust watchdog, Margrethe Vestager, has rejected any changes to merger rules, arguing instead for promoting competition as the best way to create strong international companies.

(Disclaimer: Based on information obtained from the agency.)