INSIGHTS BRUSSELS
Monthly alert on key EU policy developments Issue 23 | September 2014
THE NEW COMMISSION TAKES FORM
Contents
Editorial - Leonardo Sforza
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Who’s who of the new Commission
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Who’s who of the new Commission: In depth
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Vytenis Andriukaitis - Health & Food Safety
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Elzbieta Bienkowska - Internal Market, Industry, Entrepreneurship and SMEs
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Jonathan Hill - Financial Stability, Financial Services & Capital Markets Union
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Miguel Arias Cañete - Climate Action & Energy
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Günther Oettinger - Digital Economy & Society
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Cecilia Malmström - Trade
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Next Steps
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All eyes and ears on Brussels The hearings of the 27 designated members of the new European Commission taking place at the European Parliament until 7 October promise to be insightful and inspirational.
A week of truth and understanding All eyes and ears of the Brussels bubble, including the enlarged EU family of observers and decision makers in the European capitals and beyond, are turned to follow the best show in town. Probably less glamorous than Lady Gaga & Tony Bennett’s recent concert on Brussels’ Grand Place, the hearings of the 27 designated members of the new European Commission taking place at the European Parliament until 7 October promise to be more insightful and inspirational. In a unique practice of real democratic scrutiny that has no equal in national parliaments and executive bodies, Commission nominees will be on the grill of the relevant committees of the Parliament, for at least three hours each, sharing their views, priorities and perspectives on the assigned portfolio. For five of the most controversial nominees the scrutiny risks to be tougher and the exercise may, even for experienced high profile national policy makers, reserve reputational traps that can last for a whole political carrier. For public affairs analysts and stakeholders at large, but also for the EU administration as such, the parliamentary hearings are the first opportunity to anticipate and understand future policy directions, goals and operational plans in the wide range of policy areas under the Commission’s responsibility. Commission President-elect Jean-Claude Juncker undertook a complete reshuffle of focus and organization, making the hearings this time even more important than in the past. In this new edition of Insights Brussels we feature six of the 27 designated Commissioners with industry specific or cross-sector competences which are most likely to affect the business of our clients.
Leonardo Sforza Managing Director MSLGROUP Brussels
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Who’s who of the new Commission
Justice, Consumers and Gender Equality
Digital Economy & Society
Competition
Croatia
Transport & Space
Miguel Arias Cañete
Neven Mimica
Trade
Environment, Maritime Affairs and Fisheries Malta
Latvia
Finland
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International Cooperation & Development
Sweden
Euro & Social Dialogue
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Climate Action & Energy
Slovakia
Jobs, Growth, Investment & Competitiveness
Jonathan Elżbieta Hill Bieńkowska
Denmark
Alenka Bratušek
Internal Market, Industry, Entrepreneurship and SMEs
Dimitris Vytenis Avramopoulos Andriukaitis
Spain
Slovenia
Italy
Federica Mogherini
Johannes Hahn
Poland
United Kingdom
Energy Union
Health & Food Safety Lithuania
Financial Stability, Financial Services & Capital Markets Union
Vice-Presidents High Representative of the Union for Foreign Affairs and Security Policy
Migration & Home Affairs
Greece
Frans Timmermans
Marianne Thyssen
Austria
The Netherlands
Corina Creţu Better Regulation, Inter-Institutional Relations, the Rule of Law and the Charter of Fundamental Rights
Pierre Moscovici
European Neighbourhood Policy & Enlargement Negotitations
Romania
First VP
Günther Oettinger
Belgium
Regional Policy
France
Věra Jourová Jean-Claude Juncker
Economic and Employment, Social Financial Affairs, Affairs, Skills and Taxation and Customs Labour Mobility
Germany
Luxembourg
Czech Republic
President
Commissioners
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Jyrki Katainen Digital Single Market
Margrethe Vestager
Vladis Dombrovskis Budget & HR
Education, Culture, Youth and Citizenship
Cecilia Malmström
Research, Science & Innovation
Agriculture & Rural Development
Humanitarian Aid & Crisis Management
Carlos Moedas
Phil Hogan
Cyprus
Tibor Navracsics
Karmenu Vella
Ireland
Portugal
Kristalina Georgieva
Hungary
Bulgaria
Estonia
Andrus Ansip
Maroš Šefčovič
Christos Stylianides
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Who’s who of the new Commission: In depth
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Vytenis Andriukaitis Health & Food Safety
Elżbieta Bieńkowska Internal Market, Industry, Entrepreneurship and SMEs
Jonathan Hill Financial Stability, Financial Services & Capital Markets Union
Miguel Arias Cañete Climate Action & Energy
Günther Oettinger Digital Economy & Society
Cecilia Malmström Trade
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Vytenis Andriukaitis Health & Food Safety
Lithuanian Vytenis Andriukaitis will serve as Commissioner for Health & Food Safety, succeeding the current Maltese Commissioner Tonio Borg. Given his professional and political expertise on healthcare issues, Andriukaitis’ nomination received broad public endorsement in particular by health advocacy organisations. In the new Juncker setup, the Lithuanian will predominantly contribute to projects steered and coordinated by the Vice-President for Jobs, Growth, Investment and Competitiveness – Finnish Commissioner Jyrki Katainen. The mission statement for the future Health and Food Safety Commissioner indicates that Commission President-elect Juncker considers the existing EU food safety policy framework as well-developed, complete and mature. The priority thus lies in exercising, modernizing and simplifying EU legislation to the best effect rather than coming up with new regulation. In this respect, Andriukaitis will be asked to cooperate with the Vice-President in charge of Better Regulation – Dutchman Frans Timmermans. Specific tasks include • Strengthening the EU’s capacity to deal with crisis situations in food safety or pandemics. • Within the first six months of the mandate, reviewing the existing decision-making process applied to genetically modified organisms (GMOs). Human health is by and large a national competence. Andriukaitis shall thus concentrate his efforts on helping Member States to address the challenge of increased demands on health services and more complex technological choices at a time of intense pressure on public finances.
“Human health is by and large a national competence.”
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On relevant matters, the Directorate-General for Health and Consumers (DG SANCO) will report to Andriukaitis. The Lithuanian Commissioner is a senior health expert. He worked for many years as surgeon and was member of the Lithuanian Heart Association, the Lithuanian Doctors’ Association and the International Doctors’ Association. As of 1990, Andriukaitis was several terms member of the Lithuanian Parliament and for four years Vice-Chairman of the Health and Social Affairs Committee. Since 2012, and up until his nomination as EU Commissioner, he held the office of Lithuanian Minister of Health. Vytenis Andriukaitis has even broader political experience. To begin with, on top of his medical studies he also has a university degree in history and political science. He was member of the Council of Europe Parliamentary Assembly, twice candidate for the office of President of the Republic of Lithuania, deputy Chairman of the Lithuanian Parliament, and member of the EU Convention on the Future of Europe (the “Constitutional Convention”). On a more private note, it is of interest that Andriukaitis was born in the former Soviet Union, following his parents’ deportation to Siberia in 1941. He was active participant in the anti-Soviet underground and eventually arrested and questioned by the KGB. In 1990, he was member of the Working Group which prepared the Act of Independence, concluding Lithuania’s secession from the USSR. One of the first challenges to be tackled by Andriukaitis regards the transfer of control of important industry fields related to clinical devices and cosmetics from the Health Department to the Commissioner and Directorate General responsible for Industry and Single Market. The shift of orientation is being already questionned by several patient and Health NGOs and is likely to be questioned during the parliamentary hearing.
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Directorate General
Arūnas Vinčiūnas (LT)
Paola Testori Coggi (IT)
Head of Cabinet
Director General DG SANCO
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Elżbieta Bieńkowska Internal Market, Industry, Entrepreneurship and SMEs
Following his appointment as European Council President, Poland’s former Prime Minister Donald Tusk decided to nominate his closest aide and Deputy Prime Minister, Elzbieta Bienkowska, as Commissioner. Bienkowska was assigned with the Internal Market, Industry, Entrepreneurship and SMEs portfolio, thus succeeding the current Commissioner for Internal Market and Services, the French Michel Barnier as well as the Commissioner for Industry and Entrepreneurship, the Italian Ferdinando Nelli Feroci. Commentators in Poland underlined the fact that Tusk and Bienkowska had at national level been an effective, charismatic, trusted and respected “golden political couple”. Some say the Polish duo would try to replay their national success in Brussels. According to Commission President-elect Jean-Claude Juncker, the EU’s single market is Europe’s best asset in times of increasing globalisation. Bienkowska’s task will be to complete the internal market and make it the launch pad for European companies and industries to thrive in the global economy. Juncker stresses the need to build synergies between a high-performing industrial base and a strong services sector. This should ensure that Europe maintains its global leadership in strategic sectors with high-value jobs such as the automotive, aeronautics, engineering, chemicals and pharmaceutical industries. In more detail, this includes the following objectives: • Shaping a renewed strategy for completing the internal market for goods and services. This includes reviewing the application and scope for further extending the principle of mutual recognition in the single market and designing new policy measures to address remaining obstacles. • Raising the profile of industry in the economy, from less than 16% of EU GDP today towards an aspirational 20% by 2020. This implies stimulating investment in new technologies, improving the business environment, and easing access to markets and finance, particularly for SMEs.
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Contributing to the success and effectiveness of the European Semester of economic policy coordination, by identifying new sources of jobs and growth, looking at remaining bottlenecks and necessary action at national and European level. • Playing a particular role in supporting the better regulation agenda. • Encouraging Member States to create more synergies and stronger cooperation in defence procurement in order to avoid duplication of national programmes and match resources to our foreign policy ambitions. Bienkowska’s mission letter stipulates that she would contribute, in particular, to projects steered and coordinated by not less than four VicePresidents: the Finn Jyrki Katainen, Vice-President for Jobs, Growth, Investment and Competitiveness, the Latvian Valdis Dombrovskis, VicePresident for the Euro and Social Dialogue, the Estonian Andrus Ansip, Vice-President for the Digital Single Market, and the Slovene Alenka Bratušek, Vice-President for Energy Union. Elzbieta Bienkowska will be assisted in her mission by a yet to be established DirectorateGeneral, result of a merger between the current DGs for Internal Market and Services (DG MARKT) and for Enterprise and Industry (DG ENTR). The so-called Polish “iron lady” is recognized for her competences, energy and pragmatism. She describes herself as a technocrat with a strong experience in managing EU regional funds. Prior to her appointment as commissioner, Bienkowska was Minister of Regional Development in 2007 before being promoted Deputy Prime Minister in 2013 with a double portfolio of infrastructure and development. She is said to have good communication skills and to be fluent in English.
“EU’s single market is Europe’s best asset”
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Directorates General
Tomasz Husak (UK)
Jonthan Faull (UK)
Daniel Calleja Crespo (ES)
Head of Cabinet
Director General DG MARKT
Director General DG ENTR
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Jonathan Hill Financial Stability, Financial Services & Capital Markets Union
In the Juncker Commission, British Conservative Jonathan Hill shall become Commissioner for Financial Stability, Financial Services and Capital Markets Union, thus succeeding caretaker-Commissioner for Economic and Monetary Affairs and the Euro, Jyrki Katainen. Up until 30 June 2014, this post was held by the latter’s compatriot Olli Rehn. Jonathan Hill even takes elements of the competences from current Commissioner for Internal Market and Service Michel Barnier. Hill’s nomination was perceived by many as appeasement to the UK government, who had criticised in the past EU efforts to increasingly harmonise financial markets regulation – the financial services sector being of particular importance to the UK economy. His selection even raised some astonishment in his home country, given Hill’s reputation as being pro-European on the one hand, yet rather low-profile on the other. Jonathan Hill shall, in particular, contribute to projects steered and coordinated by the Commission Vice-President for Jobs, Growth, Investment and Competitiveness, Finnish Jyrki Katainen, and the Vice-President for the Euro and Social Dialogue, Latvian Valdis Dombrovskis. In Hill’s mission statement, Jean-Claude Juncker assigns the Brit with the task to ensure in particular that the Commission remains active and vigilant in implementing the existing supervisory and resolution rules fully in order to make European banks more robust. He shall also look at corporate governance in these industries and strengthen the rights of consumers. Additional focus shall be given to develop and integrate capital markets as a source of financing for innovative projects and long-term investment.
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“Develop and integrate capital markets as a source of financing for innovative projects.”
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Commissioner’s cabinet Matthew Baldwin (UK) Head of Cabinet
In more detail, this includes amongst others: • Measures to improve the investment environment and initiatives on the long-term financing of the economy (revive sustainable and high quality securitisation markets, reduce the cost of raising capital limit companies’ dependence on bank funding). • Ensuring timely and effective implementation of the financial services regulatory reform agenda (esp. on time set up of the Single Resolution Board). • Reviewing the functioning and the operation of the European Systemic Risk Board and the (governance and financing of the) three Supervisory Agencies (“ESAs”), including identification of financing models for ESAs that exclude national budget contributions. • Bringing about an integrated Capital Markets Union by 2019. • Ensuring the safety and modernisation of the Union’s regulatory framework on digital/electronic payments in order to facilitate online purchases. A new Directorate-General for Financial Stability, Financial Services and Capital Markets Union will report to Commissioner Hill. Jonathan Hill (or “Jonathan Hopkin Hill, Baron Hill of Oareford”) is lifelong member of the House of Lords. A former political lobbyist and PR consultant, Hill was special adviser to Cabinet Minister Kenneth Clarke and adviser to Conservative PM John Major. From 2010-2013 he served Prime Minister David Cameron as Parliamentary Under-Secretary of State for Schools in the Department for Education. In January 2013, Hill became leader of the House of Lords. Jonathan Hill has a degree in history. Beyond the organisation of a newly created department, Hill’s operations will be under close scrutiny by the financial services industry and by the European Parliament when tackling the implementation of the financial regulation package already adopted and when addressing new regulatory tools that may be required to improve the EU investment environment.
Directorate General A new Directorate General for Financial Stability, Financialy Services and Capital Markets Union will be set up.
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Miguel Arias Cañete
Climate Action & Energy
As an early supporter of Commission President-elect Jean-Claude Juncker, Spain had a good opportunity to get an important portfolio. It therefore came as no surprise that Miguel Arias Cañete was appointed Commissioner for Climate Action and Energy, succeeding the current Commissioner for Energy, German Günther Oettinger, and Commissioner for Climate Action, Danish Connie Hedegaard. The Spanish government expressed satisfaction after this appointment, especially because energy interconnections have been a top priority for Spain over the last years. However, Cañete is likely to face a tough hearing in the European Parliament because of his supposed lack of climate knowledge, his personal interests and investments in the energy sector and after having made comments during the May electoral campaign which were interpreted by some as being sexist. Socialist and Green MEPs already confirmed that they will scrutinize the Commissioner-designate very closely. In Cañete’s mission statement, the Commission President-elect Juncker indicated that the new Commissioner for Climate Action and Energy would, as a rule, liaise closely with the Vice-President for Energy Union, the Slovene Alenka Bratušek and would contribute to projects coordinated by Vice-President for Jobs, Growth, Investment and Competitiveness, the Finn Jyrki Katainen. Juncker also underlined the prominent role Cañete will have to play in establishing a European Energy Union, uniting Europe’s negotiating power vis-à-vis third countries, diversifying supply sources, enhancing the share of renewable energies in Europe and increasing energy efficiency. This includes in particular the following objectives: • Contributing to the completion of the internal market for energy, based on the identification and selection
“Establishing a European Energy Union.”
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of infrastructure projects on which to focus, on the assessment of the need to add to the current legal framework and on the concrete follow-up of the implementation of existing legislation. • Contributing to the jobs, growth and investment package to be presented within the first three months of the new Commission’s mandate. A particular focus of this package will be on infrastructure such as energy networks, as well as on renewable energy and energy efficiency. • Increasing Europe’s energy security by diversifying sources and routes of energy imports and combining Europe’s negotiating power. • Steering the preparation and negotiations of the legislative instruments that will follow political agreement on the 2030 energy and climate framework. These proposals should be made early on in the mandate. • Continuing to develop EU policy for renewables as well as energy efficiency. • Strengthening and promoting the Emissions Trading System. • Ensuring that the EU plays a leading role in international climate policy, starting with the 2015 international climate conference in Paris. The Commission’s Directorates-General for Climate Action (DG CLIMA) and for Energy (DG ENER) will report to Cañete. A lawyer by background, Cañete has been agriculture minister in the governments of both Mariano Rajoy (2012now) and José María Aznar (2000-2004). Besides his career at national level, the Spanish Commissioner has a strong EU experience with more than twelve years as an MEP and member of the Committees on Agriculture (AGRI) and Fisheries (PECH).
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Directorates General
Cristina Lobillo Borrero (ES)
Dominique Ristori (FR)
Jos Delbeke (BE)
Head of Cabinet
Director General DG ENER
Director General DG CLIMA
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Günther Oettinger Digital Economy & Society
German Günther Oettinger was named Commissioner for Digital Economy and Society, thus succeeding the current Commissioner for the Digital Agenda, Dutch Neelie Kroes. Both the portfolio assigned to him and the fact that – despite coming from a heavy-weight member state – he wasn’t named a Commission Vice-President came as a surprise to some commentators – not at last in his home country Germany. Oettinger has no previous expertise on digital issues, but he proved already in his current assignment as Energy Commissioner that he is well capable of swiftly familiarising himself with a new subject matter. In Oettinger’s mission statement, Commission President-elect Juncker made clear that the former would contribute, in particular, to projects steered and coordinated by the Vice-President for the Digital Single Market, the Estonian Andrus Ansip, and the Vice-President for Jobs, Growth, Investment and Competitiveness, Finlands Jyrki Katainen. As an important contribution to strengthen Europe’s digital economy and to create jobs, Oettinger’s task is to break down national silos in telecoms regulation, in copyright and data protection legislation, in radio waves management and in the application of competition law. In more detail, this includes amongst others: • Within the first six months and following an assessment of remaining obstacles, a legislative package towards a connected Digital Single Market, based either on existing policies or new measures (reform of telecoms rules; harmonised radio spectrum policy approach; modernised Copyright rules). • Contributing to the jobs, growth and investment package, to be presented within the first three months of
“break down national silos.”
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the mandate (focus on deployment of a high-quality, digital network infrastructure). Support for the development of creative industries as well as the European media and content industry. • Help building a global Internet governance architecture and support freedom of expression, freedom of information, freedom and pluralism of the media, the openness of the internet and cultural and linguistic diversity. • Contributing to knowledge- and technology transfer from R&D to innovation and entrepreneurship. • Promoting the use of eGovernment solutions and empowering Europe’s workforce and consumers with improved digital skills. • Contributing to cyber security preparedness and trustworthy ICT, as well as supporting the negotiations on the Data Protection Regulation, followed by a reform of the e-Privacy Directive. The Commission Directorates-General for Communications Networks, Content and Technology (DG CONNECT), and for Informatics (DG DIGIT) will report to Oettinger. Before joining the Barroso II Commission in charge of the Energy portfolio, Oettinger was from 2005 - 2010 Minister-President of the German ‘land’ (province) Baden-Württemberg and as of 2005 member of the Governing Board and the Federal Executive Committee of Angela Merkel’s CDU. Relevant for his future assignment, he was for several years chairman of the CDU Federal Committee on Media Policy and of the party’s Media Policy Experts’ Group. Oettinger studied law and speaks, in addition to his native German, English and some basic French.
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Directorates General
Michael Hager (DE)
Robert Madelin (UK)
Head of Cabinet
Director General DG CONNECT
Stephen Quest (UK) Director General DG DIGIT
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Cecilia Malmström Trade
Commission President-elect Juncker rewarded Sweden - which initially was interested in a potential Human rights portfolio - for having nominated a female candidate with strong EU experience and assigned Cecilia Malmström with the influential trade portfolio. From 1 November, Malmström will replace the Belgian Karel De Gucht. In particular, she will be in the front line for negotiating the Transatlantic Trade and Investment Partnership with the United States, and for leading talks with Japan, Vietnam and India on other free trade agreements as well as a difficult investment partnership with China. In Malmström’s mission statement, Jean-Claude Juncker pointed out that the new Commissioner for Trade would have to contribute to projects steered and coordinated by the Vice-President for Jobs, Growth, Investment and Competitiveness, the Finn Jyrki Katainen, as well as to the work of the High Representative of the Union for Foreign Affairs and Security Affairs, the Italian Commission Vice-President Federica Mogherini. Given that trade policy is one of the areas where the EU has exclusive competence, Jean-Claude Juncker is aware that expectations are high for how the Commission performs in this task area. In particular, the new Commission wants trade policy to contribute substantially to growth and job creation, focusing on the following objectives: • Continuing to engage fully in the World Trade Organisation and multilateral trade processes, with a view to champion global and multilateral action in this field and push the post-Bali work programme and multilateral negotiations forward.
“Developing a strong FDI policy.”
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Working towards a reasonable and balanced Transatlantic Trade and Investment Partnership with the United States of America, which neither threatens Europe’s safety, health, social and data protection standards, nor jeopardises cultural diversity. Particular attention will be paid to enhance transparency towards citizens and the European Parliament during all steps of the negotiations. • Taking forward the various bilateral and regional negotiations which have been launched and considering whether new negotiations should be started. • Developing a strong foreign direct investment policy. • Taking stock of the use of Europe’s trade defence instruments with a view to decide on the best way forward. • Strengthening the EU’s strategic partnership with Africa. The Commission Directorate General for Trade (DG TRADE) will report to Malmström. In the previous Commission, Cecilia Malmström was in charge of home affairs, a portfolio which was created in 2009 following separation from the area of human rights. Observers in Brussels particularly appreciate her pro-European stance and describe her as hard-working, modern and connected to social networks. Prior to her appointment as commissioner, Malmström was a member of the European Parliament from 1999–2006 and served as Sweden’s Minister for European Union Affairs from 2006–2010. Malmström holds a Doctorate in political sciences from the Gothenburg University and speaks fluently Swedish, English, French, Spanish, German and Italian.
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Directorate General
Maria Åsensius (SE)
Jean-Luc Demarty (FR)
Head of Cabinet
Director General DG TRADE
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Next steps
29 September – 7 October
Individual hearings of the Commissioners-designate. These last at least three hours and will be broadcast and webstreamed live. Each committee will draw up an evaluation and send it to the President of Parliament.
9 October
Political group leaders – the Conference of Presidents – meet to evaluate the hearings. If deemed necessary, individual Commissioners-designate may be invited to additional hearings.
22 October
Earliest possible date for a vote in plenary on whether or not to approve the full Commission.
1 November
If approved, the Juncker Commission takes office.
1 December 2014
New President of the European Council, Donald Tusk, takes office.
For further information
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WEB
romain seignovert
Peter Strempel
Office
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