Von der Leyen Assigns Economic Roles to Interventionist EU Nations

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Ursula von der Leyen has assigned Brussels’ most significant industrial and economic roles to more interventionist countries, committing to enhancing the EU’s competitiveness.

The European Commission president allocated the primary growth-related positions in her team on Tuesday to Spain, Italy, and France, which have advocated for increased joint spending, more relaxed budget deficit rules, and a greater emphasis on industrial policy.

Commissioners from Paris, Madrid, and Rome will supervise antitrust regulation, state aid policy, EU spending, and industrial strategy within the bloc’s 450 million-strong single market.

These appointments for von der Leyen’s new five-year term come shortly after Mario Draghi, former European Central Bank chief, cautioned that the EU needed to do much more to remain competitive with the US economy.

Brussels is anticipated to pivot its focus from its recent decarbonisation efforts, which have introduced new bureaucratic requirements for businesses, towards prioritizing economic growth and increased defense spending due to rising geopolitical threats from Russia and other rivals.

Despite this shift, von der Leyen emphasized that the threat of climate change is still a critical consideration in their agenda.

Additionally, von der Leyen appointed key center-right allies to oversee the EU budget, migration, and relations with North African states, aiming to curb the rise of hard-right and populist parties which gained traction in the recent European Parliament elections before forming the new commission.

To manage the critical role of climate and green transition, a center-right Dutch commissioner, a trusted ally, was chosen, while control of trade policies was given to a close confidant with 15 years of experience as a commissioner.

Von der Leyen described her new team as dedicated to “competitiveness, digitalization, and decarbonisation” and focused on innovation rather than maintaining the status quo.

France’s nominee, Stéphane Séjourné, will manage an industrial strategy focused on innovation and investment. Italy’s Raffaele Fitto will handle the cohesion funds aimed at reducing economic disparities within the EU. Spain’s Teresa Ribera, the commission’s senior Socialist, will serve as one of six commission executive vice-presidents, overseeing a clean and competitive transition, including the powerful competition policy brief.

In a letter to Ribera, von der Leyen directed her to modernize the EU’s competition policy, develop a new state aid framework to accelerate green investments, and simplify rules for government assistance to companies.

Poland’s Piotr Serafin will be responsible for managing the EU budget, including drafting the next budget for 2028-34. Trade policy will be overseen by Slovakia’s Maroš Šefčovič, currently serving his fourth term, with climate policy and clean growth managed by Wopke Hoekstra from the Netherlands.

Marta Kos, the Slovenian presumptive nominee, will head the EU’s enlargement strategy, an increasingly critical role following Russia’s full-scale invasion of Ukraine. The bloc is in discussions with Ukraine and Moldova and several Balkan countries about membership, with Slovenia advocating strongly for their admission.

Valdis Dombrovskis from Latvia will oversee EU fiscal policy and efforts to reduce red tape, while Portugal’s Maria Luís Albuquerque will aim to integrate Europe’s fragmented capital markets to prevent capital outflows to the US and boost EU investments.

A new post, the defense commissioner, has been given to Lithuania’s Andrius Kubilius, who will encourage national governments to pool spending on weapons programs.

The European Parliament will conduct hearings for the candidates, who must secure the support of two-thirds of the relevant committee members to assume their positions, followed by a vote by the full parliament to approve the college of commissioners, expected by November.

Initially, von der Leyen planned to have the new commission operational by November 1, preceding the US elections by four days. However, Slovenia delayed the appointments by a week, with further delays possible if the parliament rejects any candidates.

Von der Leyen stated, “It is impossible for me to foresee the length of this process,” but assured, “We are all working very hard to have the new commission in place as soon as possible.”

A potential point of contention with the EU legislature is the proposal to appoint Fitto, Italy’s current Europe minister, to a vice-presidential role overseeing substantial annual spending on the EU’s poorer regions, including southern Italy.

Hungary’s nominee, Olivér Várhelyi, who has already served as enlargement commissioner, is also expected to face rigorous scrutiny from MEPs due to his close ties with Hungarian Prime Minister Viktor Orbán.

Additional reporting was provided by Paola Tamma, Alice Hancock, and Laura Dubois in Brussels.

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