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The EU's fight for the consumer
by Andrew Cave

All small business owners know that the customer is king. This view has not always been shared by big business, or by government. But that could be about to change. In recent months, the European Commission has started batting for its consumers. Commissioners have launched an attack on extortionate mobile phone roaming charges, sought to open up hitherto "protected professions" and are now looking at high energy prices, all in the name of the consumer.

This is a marked shift in tactics. Since coming to office, commission president Jose Manuel Barroso's main campaign has been for greater entrepreneurship. The problem with that is the Commission has almost no control over the policies contained within the Lisbon Agenda that might make Europe's economy more competitive—and more entrepreneurial.

Perhaps out of frustration, or as part of a canny strategy to get things moving, Barroso has shifted tack to open up markets in the name of the European consumer. It's a clever switch, gaining the attention and support of the general public, while dealing a deft blow to Europe's protectionists. Promoting the rights of the consumer could, if handled correctly, help to improve the workings of the single market, boost innovation and entrepreneurship and deliver the needed jobs, as choice in the marketplace widens.

It's a strategy that big business might not like, but the blue chips can't complain too loudly about giving extra power and choice to consumers. As for small businesses, most of them act as small-scale consumers and will therefore benefit from anything that forces producers to supply the best service at the best price.

But, as ever, there is a danger that opening up markets for the consumer will also be used as an excuse for further harmonisation and regulation. There might be some cases where this is justified, but legislators will have to be careful that they don't simply add costs to smaller operators, pricing them out of the market and inadvertently curtailing greater consumer choice.

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