BRUSSELS, Apr. 18, 2008 (Thomson Financial delivered by Newstex) -- EU competition commissioner Neelie Kroes said the efficiency of the 27 member state bloc's strategy on state aid ensures that a gap in productivity with the United States is closing.

Speaking on wide-ranging issues of competition policy in Paris, Kroes said: 'The gap is now closing, after a decade of widening up until 2006.'
'Our state aid framework addresses market failure instead of picking winners. Rather than being rooted in dogma, state aid rules are flexible like our merger guidelines'.

'Our vibrant competitive markets are already full of winners, picked by consumers, from level playing field,' she said, citing the examples of Suez (NYSE:SZEZY) SA., Vivendi (OOTC:VIVEF) Universal SA. and Vodafone (NYSE:VOD) Group.

On merger policy, Kroes said the commission was right to block low cost air carrier Ryanair Holdings' proposed acquisition of Irish flag carrier Aer Lingus Group Plc. (OOTC:AELGF) 'Stopping that merger protected passengers on more than 14 million journeys,' she said.

Turning to individual countries, Kroes said Finland was an example of how to create a competitive economy in Europe.

'Creating a positive competitive framework for business works - smaller member states such as Finland...(has) demonstrated this. The thousands of small and medium-sized enterprises clustered around Nokia (NYSE:NOK) in the Helsinki region are a direct example.'
'Nokia succeeded because Finland, according to the World Economic Forum's index, has an exceptionally competitive business environment. Nokia didn't wait for a government subsidy and the result is Finland has its foot on the economic accelerator'.

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