2010年-世界发展银行全球_Romania_-_Functional_Review___Romania_Competition_Council_84页_1mb

Summary of the Functional Review of the Romanian Competition Council

Core Content

The document presents a functional review of the Romanian Competition Council (RCC), conducted in October 2010, as part of a project financed by the European Union and the Government of Romania. It evaluates the RCC's performance in enforcing competition policy, its role in promoting competition, and its capacity to meet EU standards. The review identifies key challenges and proposes comprehensive reform areas and recommendations to enhance the RCC's effectiveness and alignment with EU practices.

Main Points

Context and Purpose of Review

• The review aims to assess the RCC's ability to enforce competition policy and align with EU standards.
• Romania's legal and institutional framework for competition is underdeveloped, and the current economic crisis threatens recent progress.
• The RCC, established in 2004 through the merger of two agencies, is a relatively young institution but has made strides toward EU compliance.

Mandate of the RCC

• The RCC is responsible for:
  • Ensuring market competition
  • Enforcing compliance with competition laws
  • Reviewing state aid for firms
  • Advocating for competition principles and promoting understanding of their benefits

Performance of the RCC

• The RCC's performance in competition policy enforcement lags behind EU standards.
• Key issues include:
  • Dominant role of state-owned enterprises (SOEs) in many sectors
  • Low enforcement of competition policy against hard-core cartels and abusive practices
  • Insufficient staffing and resources for competition enforcement
  • Limited focus on anticompetitive regulation and advocacy

Key Recommendations

Reform Area 1: Improving the Governing Environment

• Mainstream competition policy within the government: Establish a competition advocacy unit to prevent anticompetitive regulation. Focus RCC activities on analyzing the impact of state aid on competition. Strengthen competition advocacy in public and government bodies.
• Strengthen regulatory agencies: Review the regulatory framework and governance of key sectors (energy, telecommunications, transport) to enhance their capacity and ability to promote competitive markets.
• Revise the RCC's legislative mandate: Update the legal framework to include the concept of "undertaking" as defined by EC law, abolish the notification system for individual exemptions, and adopt the SIEC test for dominance. Establish a provision requiring the RCC to assess market competition before the government imposes price controls. Review the impact of criminal sanctions on corporate leniency and improve accountability mechanisms for Board Members.

Reform Area 2: Sharpening the RCC's Mission

• Restructure the RCC along business lines: Shift focus to competition enforcement, with at least 70% of resources dedicated to this area. Create a dedicated unit for hard-core cartels and abuse of dominance. Reduce the number of territorial offices and consolidate resources.
• Strengthen strategic planning and results focus: Develop a strategy document with specific targets aligned with EU standards, including deadlines, performance metrics, and outcome goals. Establish internal deadlines for competition cases and modify protocols with regulatory agencies to promote competition.

Reform Area 3: Improve Underlying Capacity

• Ensure competitive compensation: The Government must ensure that RCC competition inspectors' salaries are competitive with market standards to retain and motivate staff.
• Enhance human resources and financial management: Improve recruitment, training, and performance management to align with modern public administration standards.
• Invest in information technology: Develop modern IT infrastructure to support efficient operations and data management.
• Promote public accountability: Enhance transparency through annual reports and webpages, and implement merit-based human resource management.

Key Information

• State-Owned Enterprises (SOEs): SOEs control at least one firm in 14 key sectors, with a market share above 50% in some segments.
• Enforcement Challenges: Only a few cases of anticompetitive behavior have been finalized, and no abuse of dominance cases have been concluded despite six being initiated before 2007.
• Staffing and Resources: The RCC has low staffing and limited resources for economic analysis, with 30% of its staff located in territorial offices.
• Impact of RCC Actions: The RCC has successfully tackled cartels and bid-rigging, resulting in significant consumer savings and improved market competition.
• Budget and Compensation: Human resources account for 80% of the RCC's budget and 100% of its impact. The RCC requires competitive compensation to maintain its staff and effectiveness.

Conclusion

To ensure Romania's competitiveness within the EU, the RCC must undergo comprehensive reforms to strengthen its legal mandate, restructure its operations, and improve its capacity and compensation. These changes are essential for aligning with EU standards and enhancing the effectiveness of competition policy enforcement in the country.