Chapter 2: Competition strategy 2010
Competition strategy
Competition has achieved improved conditions and has grown more intensively in a number of areas in Danish economy, but much work still needs to be done to achieve the goal of Danish economy being among the most competitive in the OECD.
Simultaneously with competition being improved in Denmark, the other OECD countries have intensified their competition. Intensified competition abroad benefits Danish economy, because the enhanced competitive situation leads to increasing growth at our trading partners who subsequently are able to take more Danish merchandise. But as competition improves abroad, progress in the competitive environment in relative terms will appear less apparent in Denmark.
The Competition Report 2004 launched six intermediate goals aimed at the competition policy strategy. The six intermediate goals – which are targeted for 2010 – are that the number of trade areas with competition problems are halved, the Danish net consumer prices will be no higher than those in the EU9 countries, public regulation should decrease competition in less areas, increased use of public restricted tenders and outsourcing in the public sector, liberty regarding choice of supplier in more public areas and Denmark’s more powerful status in the globalization.
Analyses show stagnation in three out of the six intermediate goals, these relate to the competition strategy, improvement of 2 intermediate goals and recession in one.
The number of trade sections with competition problems is coherent with the target-setting. However, decreasing the Danish price level is a slow process. Prices in Denmark are still 6 per cent higher than average in the EU9. As to restricted tenders Denmark’s ranking was in the upper end of the scale a few years ago, but is now below average.
As far as economical sincerity is concerned there is no traceable progress. The value of foreign investments in Denmark has fallen more than average in the EU from 2002 to 2003, and we utilize our import potential inadequately.
(Josephine Emilie Overgaard, Torben Thorø Pedersen)