Joaquin Almunia: Romania needs to implement competition in the airline industry

The airline industry is vital for the economy, and has a high potential for growth, Joaquin Almunia, vice-president of the European Commission and Competition Commissioner said on Friday.

He said he was confident that Romania will implement a competition system in the aviation sector, which is being monitored by the European authorities for compliance with competition regulations.

Joaquin Almunia said: "The air transport market is vital for the economy, the potential for growth is great in this sector, but in many member states we have a number of unprofitable regional airports which benefit from taxpayer money, and local development can not be helped by the large number of such airports. Also, the Commission is reviewing the aid granted to a low-cost airline which raises competition issues".

On Friday, Bogdan Chiriţoiu, the president of the Competition Council, explained that this refers to "complaints of the major, standard European companies, that the new low cost companies may be charged very low rates by the regional airports due to subsidies which allow them to have low fares".

Bogdan Chiriţoiu said: "According to our information, we weren"t officially notified, the Commission has approved the European grants scheme for supporting the regional airports. What still remains to be discussed with the Commission is what happened in the past with the regional airports and the Commission can force the company which received an unfair state aid in 2007, to return it".

The European Commissioner said that the Commission and the Romanian Authorities will cooperate to institute a competitive environment in air transportation.

• Joaquin Almunia: The economic growth forecasts for 2012 are "relatively positive"

On Friday, Joaquin Almunia said that, just like the other EU member states, Romania needs to create the fair conditions for the economy to recover quickly. One of these conditions is to promote healthy competition in all the sectors of the economy, according to the European official.

The European Competition Commissioner also said that Europe needs to stimulate economic growth fast.

"Healthy competition stimulates entrepreneurship, increases efficiency and creates the best conditions for innovation", said Joaquin Almunia. He also discussed the economic growth forecasts for 2012, which are "relatively positive", and said that it would be very important for Romania to make sure they are met.