As part of the European Union, member states adopt an economic policy gconducted in accordance with the principle of an open market economy with free competition.h The EUfs competition policy objectifies the determination of effective competition with respect to a erelevant market.f

Competition is a basic device of the market economy involving supply (producers) and demand (consumers). Goods or services are offered by suppliers in an attempt to meet demand. Demand seeks the best ratio between quality and price that consumers will purchase. The response to the supply and demand brings about a challenge between suppliers. Competition leads individuals to seek out the means of striking a balance between quality and price in order to meet the demand to its fullest extent. This efficiency means guaranteeing consumers a level of satisfaction in terms of price and quality for goods and services demanded. Competition forces firms to be competitive and attempt economic efficiency. This consolidates the EUfs industrial and commercial foundation so it is able handle the competitiveness of their key members and to put EU firms in a position to succeed in other world markets.

The EU commission must ensure that member states only grant aid that is compatible with the common market. This includes aid to make good the damage caused by natural disasters or exceptional occurrences, aid granted to areas of a country affected by the division of the country, aid to promote the development of certain activities or regions, aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a member state or aid to promote culture and heritage conservation. This aid is decided by the EU commission.

Even in the most ideal economic conditions, economists accept that perfect competition cannot be achieved. Consequently, the concept of eworkable competitionf has been developed. Although not perfect, firms and governments are encouraged to work towards the most competitive structure possible. This structure can be achieved by regulates business within the European Union, and thereby eliminating practices deemed as anti-competitive. The EU competition policy secures the benefits of European integration by effectively regulating anti competitive practices, namely monopolistic behavior, mergers and state aids, however does not ensure that Europe will remain competitive in international markets.

. The importance of a policy regulating competition was recognized early, and explicitly outlined in EC Treaty. The purpose was to prevent private economic players and national public authorities from dividing up the large European market, thus jeopardizing or even canceling the benefits of integration.

The EU believes that these anti-competitive policies will allow Europe to thrive in international markets. Firms involved are struggling amongst their international competitors, in reality. This is due to the direct and indirect results of the EU competition policy and applicable anti-competitive policies. Most agree that EU competition policy is necessary to secure the benefits of European integration. The controversy and discussions are based on the application of rules derived from a model of perfect competition. Although economist

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