European Green Deal Impact on Entrepreneurship and Competition: A Free Market Approach

Abstract

The European Green Deal (EGD) represents a new and ambitious growth strategy proposed by the European Commission for transforming the EU into a prosperous and resilient society based on competitive economy, efficiency in terms of resource allocation and a green environment. Under these circumstances, the aim of the present research is to highlight the main criticisms of the European Green Deal by taking into consideration the competition and entrepreneurial dimensions of the common market. Methodologically, the research entails a systematic review of the specialty literature and, alongside this, a preliminary bibliometric study on the analysed topic. Therefore, several critical issues on the European Green Deal’s impact on entrepreneurship and competition are highlighted. The research results illustrate that the European Green Deal affects entrepreneurial activity through a prioritization of the environmental dimension, despite the free market. Aiming to achieve the stated goals, the EGD provides the context of governmental interventions and regulations, which will distort entrepreneurship and competitional processes through fiscal policies and other instruments. The lack of clarity, the ambiguous objectives and the overall costs are also weaknesses of the European Green Deal, as highlighted by the present research. Even if it seems impressive on paper, many researchers demonstrated its inefficiency and impossibility. However, the research results are far away from denying the importance of the European Green Deal, considering the long-term perspective.