THE NEW EUROPEAN COMMISSION 2019-2024 DECEMBER 2019 THE NEW EUROPEAN COMMISSION 2019-2024 The European Parliament confirmed the new class of European Commissioners with 461 votes in favour, 157 against and 89 abstentions on 27 November 2019. The new President of the European Commission, Ursula von der Leyen, and her team of European Commissioners took office on 1 December 2019 and will drive the EU’s agenda for the next five years. Ms von der Leyen, the former German defence minister, says that it will be a “geopolitical Commission,” signalling an intention to position Europe as a heavyweight on the world stage. Here Clifford Chance experts, including Of Counsel Michel Petite who worked for EU institutions for 27 years and was legal adviser to three Commission Presidents, assess the priorities for the von der Leyen Commission. The composition of the the EU. Frans Timmermans from the Commission Netherlands is in charge of DG Climate Action (CLIMA), Valdis Dombrovskis from Ursula von der Leyen is the first woman Latvia was given DG Financial Stability, to hold the position of President of the Financial Services and Capital Markets European Commission. She urged Union (FISMA) and Margrethe Vestager Member States to nominate from Denmark retains responsibility for Commissioners that would allow her to DG Competition (COMP). “This is a new build a gender-balanced team. Whilst her feature,” says Petite, “the appointment of initial list of Commissioners-designate three Executive Vice-Presidents signals was comprised of 13 women and 14 that the Commission will work through a men, the rejection of French nominee hard core of heavyweights, with a great Sylvie Goulard and her subsequent deal of experience, who will be at the replacement with Thierry Breton has forefront of all decisions taken.” resulted in a class of 12 women and 15 men. Overall, however, Ms von der Leyen In contrast to her predecessor Jean- was successful; the new Commission Claude Juncker’s “political Commission” has a larger proportion of women than von der Leyen says that the Commission any of its predecessors and has made a will be “a guardian of multilateralism,” as significant improvement compared with it deals with a range of challenges such Jean-Claude Juncker’s Commission, as the continuing refugee crisis, an where the ratio of men to women was unpredictable and protectionist US, the 2:1. Michel Petite says: “All the rise of China and an increasingly hostile Commissioners have first class pro- Russia. She has appointed a number of European credentials, and the gender Commissioners – including Margrethe balance has been addressed, which Vestager, the former Commissioner for is great.” Competition who now widens her portfolio to include tech, and Phil Hogan, President von der Leyen has also the Agriculture Commissioner who now overhauled the structure of the takes on Trade – who have not shied Commission. There are now eight Vice- from confronting US and Chinese Presidents, three of whom are Executive positions. In addition, she has created a Vice-Presidents – Valdis Dombrovskis, new department charged with overseeing Frans Timmermans and Margrethe defence and space policy, which Vestager, representing the three largest Washington may regard as a challenge to political groups. These three new the US-led NATO alliance. Executive Vice-Presidents have been given oversight of major policy areas for 2 CLIFFORD CHANCE THE NEW EUROPEAN COMMISSION 2019-2024 A rocky start for the von “Weber’s revenge” – a der Leyen Commission setback for French After securing the top post in the President Emmanuel European Commission with a majority of Macron? only nine votes from MEPs, Ms von der The rejection of Sylvie Goulard marks the Leyen faced a number of set-backs first time that the European Parliament before taking office. She suffered has ever voted against a French numerous delays to the Commissioner Commissioner nominee. Despite confirmation procedure and, as a result, concerns surrounding her involvement her class of Commissioners were delayed with an American think tank and an by one month in taking office, with the alleged misuse of European Parliament previous Commission staying on beyond funds, a number of commentators believe their term in a “caretaker” capacity. She that Sylvie Goulard’s rejection was also received widespread criticism for her intended by some MEPs to be a direct decision to create a portfolio for blow to French President Emmanuel “protecting our European way of life”, Macron, who played an instrumental role which she later changed to “promoting in preventing Manfred Weber, leader of the European way of life.” the European People’s Party (EPP), from securing the Commission presidency. The UK’s failure to nominate a Commissioner also brought into question Following Sylvie Goulard’s rejection, the legitimacy of von der Leyen’s President Macron maintained that his Commission which, under EU law, must be priority was to retain France’s portfolio. In comprised of a Commissioner from each what can be seen as a win for the French Member State. A number of press articles President, France’s new Commissioner cited concerns that the absence of a UK Thierry Breton has been awarded the Commissioner could lead to challenges same “super portfolio” as Sylvie Goulard, against Commission decisions (particularly which includes the formidable mix of within the realms of competition law and internal market and digital, plus defence trade) for as long as the UK remains within and space. The appointment of the the EU, on the basis that the Commission Commission more generally can also be has not been validly constituted. “Nobody, seen as a success for President Macron; except some members of the press, as the most unashamedly pro-European expects any problems”, Michel Petite says, leader on the European Council, his as the Commission is likely to delay any approach and priorities are closely contentious decisions until after the UK has aligned with the new Commission and its formally left the EU in order to sidestep any core objectives. potential challenge.The EU institutions must be able to continue to function. “The show must go on”, says Petite. Other notable appointments Despite the difficulties von der Leyen has Margrethe Vestager faced, her experience is far from unique. Her nomination as an Executive Vice- In 2014, the Hungarian and Slovenian President is not only a reflection of her Commissioner nominees, including a performance in the previous Commission, would-be vice president, were rejected but also of the improved results of the by the European Parliament. Juncker’s Liberal group (Renew), which currently predecessor, José Manual Barroso, includes seven heads of government endured significant delays in taking office; across the EU and won 108 seats in during the approval of his second term in May’s European Parliament elections. 2009-10, the pressure for him to replace the Hungarian Commissioner nominee, This is the first time a Competition together with the ratification of the Lisbon Commissioner has remained in post for a Treaty, resulted in delays of over three second term. In the past, it was months. Similarly, during his first term, considered too powerful and too sensitive Barroso was forced to replace the Italian a position to remain in the hands of the Commissioner nominee and the same person for two terms. What is not Commission’s starting date was delayed clear is how Ms Vestager will manage the by four weeks. CLIFFORD CHANCE 3 THE NEW EUROPEAN COMMISSION 2019-2024 competition portfolio alongside the Ireland has more of a stake in maintaining additional responsibility of leading on close ties with the UK than any other digital issues, a challenge which Ms country in the EU, and Hogan’s Vestager herself acknowledged in her appointment as Trade Commissioner hearing before the European Parliament. demonstrates that Ireland continues to be In reality, it is likely that she will coordinate at the centre of Europe’s concerns as with Thierry Breton, the Commissioner for regards finding a way forward on Brexit. the Internal Market. Whilst negotiations with the UK will be led by the newly-formed UK Task Force “Margrethe Vestager will also surely (UKTF) and its leader, Michel Barnier, Mr stymie recent suggestions from France, Hogan will play a crucial role in shaping Germany and other Member States that the future economic relationship between competition rules should be amended in the EU and the UK. Mr Hogan is now order to promote national champions also responsible for DG Trade, for which following the blocking of the Alstom- Sabine Weyand, Michel Barnier’s deputy Siemens merger,” says Gail Orton, during the Article 50 negotiations, is now Clifford Chance’s Head of EU Public Director General. Policy. A more interventionist approach could, however, be pursued in the What about the UK? portfolio of Thierry Breton, where he is After the UK was granted another now responsible for developing Europe’s extension to the Article 50 process in data strategy and there is already an October, the British government agreed industrial policy for defence and space. to nominate a Commissioner. However, on 13 November, despite repeated Thierry Breton requests from the European Commission France has been given an extremely and von der Leyen, the UK’s Ambassador important portfolio, bringing together two to the EU wrote to the European DGs and creating a third to put Thierry Commission stating that the UK will not Breton in charge of the internal market, nominate a Commissioner before the including the Digital Single Market (DSM), general election on 12 December. defence and space. The new DG Defence Industry and Space has come The European Commission initiated out of DG GROW, which had grown too infringement proceedings against the UK big and unwieldy. It is also the first time on 14 November for its failure to that digital has been brought into the fold nominate a Commissioner, citing a of the internal market, emphasising the breach of its obligations under the EU importance of creating a real DSM.