CC-BY-4.0: © European Union 2019- Source: EP
Ursula von der Leyen
EUROPEAN COMMISSION PRESIDENT 2019-24: POLICY PRIORITIES FOR THE TECH SECTOR
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Executive Summary
• Ursula von der Leyen was confirmed as centre-right European People’s Party (EPP) President-Elect of the European political group within the European Commission for the 2019-24 term by the Parliament and is seen as a close ally of European Parliament on 16 July 2019. German Chancellor Angela Merkel.
• With 374 votes in favour needed to confirm • The publication of her ‘Political Guidelines’ her nomination, von der Leyen was ahead of the European Parliament’s approved with 383 votes in favour, 327 confirmatory vote outlined her key policy votes against, 22 abstentions and 1 vote initiatives as European Commission void. President. The high-level policy document indicates a key focus on environmental and • Her slim majority reflects broader social policies. discontent in the European Parliament over the European Council’s decision not to • Tech and digital policy feature prominently nominate a lead of a political group within in the ‘Guidelines’. Key areas covered range the Spitzenkandidat system, as well as from Artificial Intelligence (AI) and the concern over von der Leyen’s track record envisaged ‘Digital Services Act’ to digital in German government. taxation underline the importance of tech issues within the next European legislative • The vocal opposition of political groups cycle. including the Greens/EFA, Identity and Democracy (ID) and GUE/NGL highlight the • Von der Leyen has outlined an ambitious broader challenge that von der Leyen will timeframe for some of her programme and have to get her legislative agenda through firms should expect movement on certain the European Parliament in the 2019-24 issues in the first months of her tenure as term. European Commission President. A number of policy proposals, including those related • Von der Leyen has extensive experience in to AI, are expected within her first 100 days German domestic politics at both a state in office. However it is unclear to what and federal level, having served as Federal extent her legislative proposals will be Minister of Defence, Federal Minister of supported both within the European Labour and Social Affairs, and Federal Council and the European Parliament. Minister for Family Affairs, Senior Citizens, Women and Youth. As a member of the German CDU party, she is a member of the
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Introduction
The nomination of Ursula von der Leyen as the rejection of the Spitzenkandidat process and European Council’s candidate for the her performance as German Defence Minister, European Commission President for the 2019- including the operational capabilities of the 24 term followed several weeks of intense German military and ongoing investigations by political negotiations in which European Union the German Parliament into contracts with Member States sought to reach a collective external consultants. agreement on a suitable candidate. Despite strong calls from the European The appointment of a new European Parliament for the European Council to Commission President represents a key nominate a Spitzenkandidat (lead candidate) component of the EU institutional transition from one of the political groups, European following European Elections held in May. The leaders instead selected a compromise European Commission President enjoys candidate from national politics without EU significant international visibility and provides institutional experience. “political guidance” to the Commission. Through selecting the Commissioners As a multilingual veteran of German domestic nominated by national governments, politics, von der Leyen enjoys the backing of allocating portfolios and overseeing the work German Chancellor Angela Merkel’s Christian of the Commission, the President guides the Democratic Union (CDU) party in Germany and political direction of the European Union. the support of the European People’s Party Identifying their policy priorities is therefore (EPP) political group in the European crucial for firms looking to understand the Parliament. Her nomination nevertheless long-term direction of the incoming faced considerable opposition within the Commission and key areas of potential European Parliament due primarily to engagement. concerns over the European Council’s
Policy priorities
Ahead of the European Parliament’s The Guidelines outline high-level confirmatory vote, von der Leyen published a commitments to introduce legislative ‘Political Guidelines’ document outlining her proposals on social, environmental and policy priorities as President of the European economic policy, as well as steps to improve Commission. The high-level document is areas including inter-institutional relations and focused on six “headline ambitions” for the EU’s international role. The Guidelines Europe: reflect a broad-based policy programme which 1. A European Green Deal include a number of proposals and initiatives- 2. An economy that works for people particularly in regard to the environment- 3. A Europe fit for the digital age which were intended to appeal to centre-left 4. Protecting our European way of life political groups including the Socialists and 5. A stronger Europe in the world Democrats (S&D) and Greens/European Free 6. A new push for European democracy Alliance (EFA) within the European Parliament and facilitate her election as President.
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The Guidelines highlight the importance of proposals within the first 100 days of her tech policy within the 2019-24 European tenure as European Commission President, legislative term. Key policy proposals including indicate that digital policy may move very the Digital Services Act and investment in new quickly under the new Commission. The technologies will need to be elaborated in the complexity of the political landscape within coming months, providing opportunities for the European Parliament following the May firms to engage with stakeholders within the 2019 elections nevertheless indicates that European institutions. significant challenges will remain in ensuring the passage of key legislation. The ambitious timeframe proposed within the Guidelines, including the introduction of
Tech-focused proposals
DIGITAL SERVICES ACT DISINFORMATION Von der Leyen proposes a new ‘Digital Services Act’ to “upgrade our liability and safety rules” Von der Leyen states that the EU should for platforms, digital services and products. No develop a “joint approach and common information on the legislative elements or standards” in order to address this challenge. specifics of this proposal are included in the Von der Leyen will also propose a “European Guidelines. Democracy Action Plan” which will include legislative proposals to ensure greater ARTIFICIAL INTELLIGENCE transparency on paid political advertising. (AI) DIGITAL TAXATION Legislation on a coordinated European approach on the human and ethical Von der Leyen supports the reform of current implications of AI will be launched within her EU and international corporate tax systems first 100 days in office. which she states are unfit for the modern global economy and “do not capture the new SUPPORTING NEW business models in the digital world”. She commits to ensuring that digital taxation is a TECHNOLOGIES policy priority and will support movement on current proposals. In line with the European Von der Leyen calls for the development of Union’s current stance on digital taxation, she joint standards for 5G networks, as well as states that the EU will look to move on its own technological sovereignty in “critical if no international agreement is found by the technology areas”. She would support end of 2020. investment in new technologies including blockchain, “high-performance computing”, TAXATION algorithms and tools to support data sharing
and data usage. She states that the EU should Von der Leyen supports measures to improve lead the development of new standards which the business taxation environment within the could become the “global norm”. Investments European Union. She supports Common in Artificial Intelligence will also be prioritised.
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Consolidated Corporate Tax Base (CCCTB) by co-decision and decided by qualified proposals to ensure clarity on tax regulation majority voting (QMV) within the Council of across the Single Market. She supports the the European Union. adoption of taxation proposals to be adopted
Key proposals for businesses in general
SMALL AND MEDIUM- 100 days in office, as well as further SIZED ENTERPRISES (SMES) movement on the ‘Women on Boards’ Directive to support gender balance on
corporate boards. Von der Leyen will propose a “dedicated SME
strategy” to improve market access and reduce red tape. She will support a new STRENGTHENING EU INTER- public-private fund to support SME IPOs with INSTITUTIONAL RELATIONS matching investment from the EU and private investors. To strengthen relations between the European Parliament and European FAIR MINIMUM WAGE Commission, von der Leyen supports a right of legislative initiative for the Parliament. She An action plan to ensure full implementation commits to responding with a legislative act of the European Pillar of Social Rights will be when the Parliament adopts a resolution proposed. She will also propose legislation to requesting the Commission to submit ensure that European workers have a “fair legislative proposals. She outlines her minimum wage” according to national commitment to ensuring that Commissioners circumstances. engage frequently with the European Parliament during the legislative process and WORK IN THE PLATFORM international negotiations and will support regular debate with the Parliament through ECONOMY the ‘Question Hour’ initiative. This will allow MEPs to engage directly with the European Von der Leyen will explore ways to improve Commission President (and other labour conditions for workers in the platform Commissioners) on key issues. economy, particularly through skills and education. She also supports the full BREXIT implementation of the EU’s Work-Life Balance Directive. Von der Leyen supports an “ambitious and strategic partnership” with the United EQUALITY AND DIVERSITY Kingdom following Brexit. She supports a further extension past the 31 October 2019 if To ensure equality, von der Leyen commits to it is for “good reasons”. proposing new anti-discrimination legislation as well as a new European Gender Strategy to ENVIRONMENT ensure equal pay. This will also be reinforced through binding pay-transparency A key element of von der Leyen’s Guidelines requirements to be introduced within the first focus on environmental policy. These outlines
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new initiatives including a “European Green including the maritime and construction Deal” to be introduced within 100 days in sectors, and a “European Climate Pact” with office, a “European Climate Law” with a legal pledges from stakeholders. The Guidelines commitment to ensure EU carbon neutrality also underline a commitment to increase by 2050, an extension of the Emissions sustainable finance and investment in Trading Scheme (ETS) to cover new areas environmental technologies.
Biography
Ursula von der Leyen was born in Brussels, Women, Family Affairs and Health. From 2004 Belgium on 8 October 1958. She attended the she was a member of the CDU’s Presidium European School of Brussels from 1964-71. (leadership committee).
Von der Leyen studied economics at the Von der Leyen was appointed Federal Universities of Göttingen and Münster in Minister of Family Affairs, Senior Citizens, Germany, with some time spent at the Women and youth in 2005, and was elected London School of Economics in the United as a member of the German Bundestag in Kingdom. She later studied medicine and 2009. She was appointed Federal Minister of graduated from the Hanover Medical School Labour and Social Affairs in 2009. From (MHH) in 1987. She was awarded a doctorate December 2013-July 2019, von der Leyen in Medicine in 1991. She worked in the MHH served as Federal Minister of Defense. Von Department of Epidemiology, Social Medicine der Leyen was widely tipped as a potential and Health Systems Research from 1998- successor to Angela Merkel as German 2002. Chancellor.
Von der Leyen joined the Christian She is married to Heiko von der Leyen and has Democratic Union (CDU) party in 1990 and seven children. Her father, Ernst Albrecht, held a number of local political positions in was a prominent German politician who Hanover before being elected to the State worked with the European Economic Assembly (Landtag) of Lower Saxony in 2003. Community (EEC) and European Commission From March 2003 to November 2005 she and served as state premier of Lower Saxony served as State Minister for Social Affairs, from 1976-90.
Implications for the tech sector
Ursula von der Leyen’s ‘Political Guidelines’ institutions, do not represent a concrete highlight the importance of tech and digital forecast of the European Commission’s policy in the incoming 2019-24 Commission proposals. The publication of the European and identify key policy areas to be addressed Commission’s work programme later this year over the next legislative cycle. The ‘Guidelines’ will help identify which of von der Leyen’s were nevertheless intended primarily as a tool ideas will be translated into more tangible to facilitate her election as European policy proposals. Commission President which, although indicative of discussions within the EU
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Political ‘fragmentation’ within the European More practically, the ‘Political Guidelines’ have Parliament following the 2019 elections may been produced before the start of her tenure complicate the legislative process due to the and will be further shaped by the need to balance competing demands, circumstances of the 2019-25 legislative term. expectations and commitments from political Geopolitical challenges, climate change, and groups. More complex or controversial global trade tensions are just some of the proposals outlined in the ‘Guidelines’ may face potential challenges that may come to define opposition within the European Parliament. the incoming Commission’s term and require Given this more challenging political more immediate policy responses. The landscape, it is unclear at this stage which of legislative priorities within the ‘Political von der Leyen’s proposals- if successfully Guidelines’ can therefore be expected to introduced as legislation- would become EU evolve considerably over this Commission in law. It is also possible that a number of her response to the changing global landscape. initiatives will face resistance within both the European Council and Council of the European Union.
Key dates
JULY-AUGUST 2019 1 NOVEMBER 2019 Ursula von der Leyen will review EU Member The new College of Commissioners, including States’ nominated Commissioners. Member von der Leyen, is due to assume office. States will need to submit their nominations by 26 August. AUTUMN 2019 The European Commission will present its SEPTEMBER 2019 policy priorities for the 2019-24 legislative The European Parliament will hold hearings cycle. with Commissioners-designate.
OCTOBER 2019 The European Parliament will vote on the new College of Commissioners as a whole during the II Plenary session in Strasbourg.
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