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Ursula von der Leyen makes pitch for second term as Brussels chief

July 18, 2024
in Finance
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Ursula von der Leyen makes pitch for second term as Brussels chief
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Ursula von der Leyen has promised a “European prosperity plan” if she wins a second term as European Commission president, pledging to reduce regulation and preserve the EU’s “competitive edge” amid fears of the continent falling behind the US and China.

Von der Leyen, who has run the commission since 2019, through the coronavirus pandemic and the onset of Russia’s full-scale invasion of Ukraine, is aiming to win a second five-year term as the EU’s most powerful official in a vote in the European parliament later on Thursday.

In a pitch to a parliament that has shifted rightward following last month’s elections, she also pledged to create new dedicated European commissioners for housing, defence, EU enlargement, and the Mediterranean region with a remit to tackle migration.

A 31-page policy proposal document released ahead of the vote referenced “investment” 49 times, appealing to cash-strapped EU governments that want to see long-delayed progress in better integrating the continent’s capitals markets to unlock more private financing to fund defence, green transition and digital needs.

The proposed defence commissioner, lobbied for by EU capitals owing to Russia’s war and the increasing probability that Donald Trump wins the US election in November and reduces Washington’s commitment to European security, would seek to pool resources on military spending. 

The commission would propose a European-wide air defence system and cyber protection as “projects of common European interest” that could attract EU funding.

Von der Leyen needs to win 361 votes from the 720-strong parliament in Strasbourg in Thursday’s secret ballot.

Her policy proposal document, agreed with the three centrist political parties backing her candidacy, is a sharp pivot away from her first term, which was dominated by a sweeping plan to combat climate change.

She said the focus of that Green Deal would switch to implementing existing laws rather than passing new ones.

EU business groups have long complained about Brussels regulations holding them back as they seek to compete with the US and China in emerging industries such as green technologies. Von der Leyen proposed to charge a commission vice-president with “implementation and simplification” to make this process easier.

She also wrote that the EU’s tight merger rules would be relaxed to allow companies to grow at home so they could take on global giants.

“I believe we need a new approach to competition policy, better geared to our common goals and more supportive of companies scaling up in global markets — while always ensuring a level playing field.”

One member of the European parliament said the document was “a European Christmas tree” with presents for all parties, while questioning whether it could all be delivered.

For example, it states the new housing commissioner would produce a “European Affordable Housing Plan”, even though housing powers rest with national governments. The European Investment Bank would act as a conduit for public and private money for projects.

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