Welcome to Better Europe’s weekly update on EU Affairs.
PARLIAMENT HESITATES TO PUT THE HEAT ON AT THE COMMISSION GRILL
As quite a few naïve Europeans woke up on Wednesday with Trump going to Make America Great Again, the Parliament relentlessly continued its once-in-the-cycle Commissioner-designate grilling with not a single Commissioner replaced so far. Since 2004’s dismissal of openly homophobic designate Rocco Buttiglione, the Parliament has always required replacements, further written questionnaires or re-exams. If the most controversial Commissioners make it through next week, this session would confirm indeed that the Parliament’s institutional control over Member States has been seriously reduced. Perhaps Hungarian Olivér Várhelyi might see his portfolio reduced as apparently, he doesn’t understand that women’s health is an EU competence and he also inconveniently “knows best” a controversial Member State. Beyond this, the closest the Parliament got to making one of the designates sweat a bit was on Tuesday, when Swedish designate Jessika Roswall, despite showcasing her forestry expertise, was requested to submit a new written statement after her hearing. However, rumour has it that the small hiccup was quickly dissolved by her EPP allies the next day by threatening a tit-for-tat against Belgian liberal nominee Hadja Lahbib, and both women were cleared swiftly after. We still have the Italian hard right government nominee Raffaele Fitto coming next week, but rejecting him or requesting a change beyond a symbolic demotion in title would upset the timetable for the final vote and desired start date of 1 December, a risk that the four political groups that supported VDL 2.0 no longer seem willing to take. Member States 1 – Parliament 0.
SCHOLZ OUSTS LINDNER: A GAMBLE FOR GERMANY AND FOR EUROPE’S STABILITY
Chancellor Olaf Scholz’s decision to sack Finance Minister Christian Lindner despite the expected high political cost to himself has sent shockwaves through German politics – but for Europe it could be a long-overdue relief. The collapse of the ‘traffic light’ coalition shows that Germany is finally ready to move forward without the FDP, the smallest party in the coalition, whose relentless fiscal conservatism has disrupted EU negotiations for months. Lindner’s opposition to key economic reforms and his sabotage of budgetary and climate policies had stalled progress and prevented any meaningful action at a crucial time. By expelling Lindner, Scholz removes a major obstacle to the reforms Europe desperately needs. However, the move has significant political ramifications: with a confidence vote scheduled for 15 January, Germany faces months of instability and the country’s political future remains uncertain. While a snap election could lead to a more cooperative government, Germany’s ability to stabilise and tackle pressing EU challenges now hangs in the balance. Will the country find a way forward or will political uncertainty continue to undermine its role as Europe’s economic anchor? Only time will tell!
FINANCE COMMISSIONER ALBUQUERQUE PROMISES TO DO WHAT SHE HAS TO DO
“Habemus Commissioner!”, as a high-ranking consumer finance expert put it. Maria Luís Albuquerque, the new Commissioner for Financial Services and the Savings and Investment Union, made it through one of the smoothest confirmation hearings this week. While controversial for some, her broad political and industry experience in finance clearly helped her withstand the wide diversity of questions fired at her. On substance, MEPs got her to confirm on the record that she will ensure our financial system supports the green and digital transitions, including the need for long-term investment with a strong focus on enabling private investment in climate transition. She refused to be tricked into a regulatory arbitrage game with Donald Trump’s incoming administration on applying the Basel III banking standards and dodged the expected questions from progressive groups on her “predominantly non-excusive” passage in the financial sector. As expected, the focus will be on implementation rather than new Level 1 legislation, even if we’re not getting a regulatory pause and initiatives such as the Sustainable Finance Disclosure Regulation review will come through where needed.