An ambitious overhaul of the Commission structure aimed at tackling the big political challenges in the EU 1 Briefing note September 2014 An ambitious overhaul of the Commission structure aimed at tackling the big political challenges in the EU On 10 September 2014, President-elect Jean-Claude Juncker announced the structure of his team, and the allocation of responsibilities in the 'Juncker Commission.' Exercising his power under the Treaty on the European Union ('TEU') to organise the work of the European Commission (the 'Commission'), President-elect Juncker announced key changes to the current structure of the Commission, which will impact its workings and the policy-making procedures. It is yet unclear how these changes will be implemented and enforced in practice. Nonetheless, they bring forward a number of novelties in the way the Commission operates, especially because several important Directorates-General ('DGs') such as DG Internal Market and Services and DG Economic and Financial Affairs are stripped of several key responsibilities. Insight into the new Commission The 'Juncker Commission' is highly political, and comprises a number of popular high-profile politicians, many of whom are very well-known in their Member States. President-elect Juncker had already expressed his intent to improve the functioning of the Commission. He decided to do so by fundamentally restructuring the allocation of the various responsibilities at College level. In addition, he announced the restructuring of the Commission's services (DGs) to reflect any changes coordinating horizontally the various The establishment of a new DG at College level. Commission's portfolios. In addition, responsible for Financial Stability, the reinforced role of the Vice- Financial Services and Capital Two major changes to the structure of Presidents resulted in leaving room Markets Union that will be led by the Commission concern the for broader portfolios for the actual the UK Commissioner-designate, appointment of a First Vice-President, Commissioners. Jonathan Hill; and the reinforced, more substantive role of the Commission's Vice- Other key points on the structure of The merger of the DG Presidents, who are tasked with the Juncker Commission include: responsible for taxation and customs with the DG responsible 2 An ambitious overhaul of the Commission structure aimed at tackling the big political challenges in the EU for economic and financial affairs, of Juncker's 'right hands.' President-elect Juncker has noted which will be led by French Considering the extraordinarily that the purpose of this restructuring Commissioner-designate Pierre burdensome job of the President of was not to create two-tier members of Moscovici; the European Commission, President- the College explaining that a The reinforced role of the DG elect Juncker established the novel Commissioner will depend on the responsible for Communications role of the First Vice-President support of a Vice-President to bring a Networks, Content and assigning Timmermans the task of new initiative into the Commission Technology ('CONNECT') under coordinating the Commission's Work Programme or on to the College the supervision of the German legislative-making role, and regularly agenda, but that at the same time the Commissioner-designate monitoring legislative procedures. Vice-President will depend on his or Guenther Oettinger, which will her 'Project Team' Commissioners' also be responsible inter alia for Within the first three months, he will contributions to successfully complete copyright matters, as well as review all pending legislation, and the project assigned to him or her. decide on whether to withdraw any counterfeiting; In practice, each Commissioner who outstanding proposals. The merger of the DG for Internal is assigned to a specific portfolio Market and Services (note would need the support of the In general, Timmermans will monitor however that the scope of the responsible Vice-President(s) to take compliance of the Commission with work of that DG will be his initiatives forward. For instance, a its commitment for better regulation, substantially reduced with potential review of the EU copyright the rule of law and the Charter of financial services being dealt by legislation that could be put forward Fundamental Rights, as well as the the newly-established DG under the supervision of principles of subsidiarity and responsible for financial services, Commissioner Guenther Oettinger proportionality. and several important units, responsible for the Digital Economy including the Copyright and and Society would need support by Timmermans' role has been Online and Postal Services units Andrus Ansip, Vice-President described as "central" in the moving to other DGs) with the designate for the Digital Single modernisation of the European DG for Enterprise and Industry. Market, but other Vice-Presidents as Commission, although it is difficult at well, including Kristalina Georgieva, this stage to assess the exact role of One major challenge is how decision- Vice-President designate for Budget the First Vice-President within the making will operate in practice, and Human Resources. How this College. especially in view of the potentially mutual collaboration will operate in divergent opinions within the College practice is not yet known. It has been and the fact that Commissioners will The reinforced role of made clear however that at the be required to work together in Vice-Presidents of the College all Members will have equal 'project teams' under the supervision Commission voting rights. of the respective Vice-President. On the other hand, it will most likely President-elect Juncker reinforced the The new DG for Financial reduce the number of debates and pre-existing role of the Vice-President Stability, Financial votes in the weekly College meeting of the Commission assigning the five Services and Capital as if a proposal is agreed between the Vice-Presidents the task to coordinate Commission services, and the horizontally the work of a number of Markets Union relevant Vice-President, and has the portfolios led by the respective Rather unexpectedly, President-elect support of the First Vice-President, it Commissioners. Juncker's goal is to Juncker assigned the role of the will be very unlikely for the other 'ensure a dynamic interaction of all overseer of the EU financial services Commissioners to oppose it. Members of the College, breaking policy to Jonathan Hill, the UK down silos and moving away from Commissioner-designate, who will be The role of the First static structures,' and address the in charge of the newly established Vice-President tendency of contradictory policy DG, and will also be responsible for Dutch Frans Timmermans objectives undertaken by the various Commission's relations with the (PvdA/S&D) is meant to become one Commissioners. European Banking Authority (EBA), An ambitious overhaul of the Commission structure aimed at tackling the big political challenges in the EU 3 the European Insurance and designate Valdis Dombrovskis Industrial Property Unit) given that Occupational Pensions Authority responsible for the Euro and Social several units will move to the (EIOPA), the European Securities and Dialogue. newly-established financial services Markets Authority (ESMA), the DG, and some key units dealing with European Systemic Risks Board President-elect Juncker digital issues such as the Copyright (ESRB), and the Single Resolution underscores the unit will move to DG CONNECT. Board (SRB). importance of the digital The merger recreates a new DG, Clearly, Juncker's ultimate goal is to economy in the EU by which is very similar to DG III of the entice UK to remain in the European assigning the task of 1980s, which was tasked both with Union. However, all commentators normalisation, as well as with have raised concerns about Hill's promoting the EU digital infringements in the single market. hearing before the European agenda to two Members of Next steps Parliament Committee for Economic the College Affairs ('ECON'), where he will most The new Commission, if voted by the likely be the addressee of challenging Vice-President designate Andrus European Parliament and confirmed questions in relation to UK's position Ansip responsible for the Digital by the European Council, will on the bonus cap, and the potential Single Market will work together with normally take office on 1 November future challenge that may be brought Commissioner-Designate Guenther 2014. Nonetheless, the European by the UK against the Financial Oettinger responsible for the Digital Parliament members will impose Transaction Tax ('FTT'). Economy and Society to remove some very difficult questions to a national silos in telecom regulation, in number of the DG Taxations and the management of radio waves, as Customs and DG well as in the application of Commissioner-designates, including UK Commissioner-designate Economic and Financial competition law (together with Commissioner-designate Margrethe Jonathan Hill, as well as Spanish Affairs merge under the Vestager responsible for Miguel Arias Canete, and Maltese supervision of the French Competition). Among other tasks, Karmenu Vella. It is worth noting that there was a delay for the last two Commissioner-designate President-elect has referred to the need to modernise copyright rules 'in Commissions in taking office as a The French Commissioner-designate the light of the digital resolution.' Of result of a request from the Pierre Moscovici on the other