EU slams Sarkozy aide attack on competition policy

BRUSSELS (Reuters) - The EU's executive arm rejected on Monday criticism by French President Nicolas Sarkozy's top political aide that Brussels competition policy was "religious dogma", calling it instead a key to economic success.

The latest critique followed Sarkozy's success last June in having other EU leaders remove "free and undistorted" market competition from the objectives of the European Union in a proposed new treaty for the bloc.

The European Commission's chief spokesman rejected the comments by Sarkozy aide Henri Guaino, made in an interview with the Financial Times published on Monday, that the competition policy of the EU executive was damaging Europe.

"Not only do we not share the view of that particular gentlemen but (we) believe that competition policy as conducted by the EU is based on a very firm political consensus, and it is a key part of the economic success of the European economy," spokesman Johannes Laitenberger told a regular briefing.

Guaino was quoted as saying though competition was better than monopoly, "if you have a religious, dogmatic vision you are going to end up putting the European economy in a situation of extreme inferiority compared to all other countries".

Laitenberger said EU policy -- in particular on competition -- had resulted in growth and employment.

"It's one of the EU's success stories and has been since its inception," he said.

Guaino said U.S. antitrust authorities pursued companies that abused a dominant position, but Europe insisted on doing more.

"In Europe we say you are big and therefore in a dominant position ... with a tendency to abuse it. From the point of view of all the principles of law this is perfectly absurd," he was quoted as saying.

Guaino said: "The theory of competition is not sacred. It evolves; it changes."

But Laitenberger said EU competition policy had kept up with the times.

"The policy has been modernized over the last few years, radically updated," he said.

(Reporting by David Lawsky; editing by Dale Hudson)