Welcome to Better Europe’s weekly update on EU Affairs.
NEW ECR LEADER PROMISES ‘CREATIVE CONTINUATION’ OF MELONI’S WORK
Former Polish Prime Minister Mateusz Morawiecki has officially taken over the leadership of the European Conservatives and Reformists (ECR) following the resignation of Giorgia Meloni. Elected in Brussels on Tuesday, Morawiecki’s leadership promises to continue the hardline rhetoric of his predecessor, positioning the ECR as an increasingly controversial force in European politics. Under Meloni, the ECR thrived by attracting both far-right groups and moderate conservatives, creating an alliance of unlikely partners. Now, with Morawiecki at the helm, the party’s vision seems set to continue to embrace its radical conservative agenda and strengthen ties with far-right movements across Europe. Morawiecki praised Meloni’s leadership in his acceptance speech, describing his approach as a ‘creative continuation’ of her work. Morawiecki’s election signals not only a change of leadership, but also a strategic shift, as the ECR moves closer to the European People’s Party (EPP) and strengthens ties with centre-right and far-right groups. The appointment comes at a time when the political landscape is shifting to the radical right, signalling a major reshuffling of Europe’s political chessboard.
NO REGULATORY PAUSE AS SAVINGS AND INVESTMENT UNION TAKES SHAPE
The Capital Markets Union, born a decade ago as the ugly sister of the Banking Union and rebranded Savings and Investment Union in the “Much More Than a Market” report last year, is finally coming to life. Commissioner Maria Luís Albuquerque and Executive Vice-President Stéphane Séjourné have been tasked with turning Enrico Letta’s wise words into action and plan to present their view on how to build a consumer-centric market of cross-border savings and investment opportunities on 1 April. Letta and former French central banker Christian Noyer are touring Brussels to defend the core plank of the proposal, the creation of integrated supervision for the biggest market players at ESMA in Paris, pushed for by the industry who prefer to deal with one authority rather than 27. The plan for ESMA to mirror the ECB’s role as the supervisor for Europe’s largest banks, is proving to be one of the most controversial points. This means that the retail pillar of the package, including ideas to create a harmonised European savings account and to revamp the legislation on Pan-European Personal Pension Products, could actually become the low-hanging fruit. Perhaps the Commission should revive some of the ideas that the Retail Investment Strategy was proposed to address before it got stuck in the fridge for failing to address inducements?
VON DER LEYEN DELAYS COMPETITIVENESS COMPASS
The Commission’s Competitiveness Compass, a key economic strategy document for the 2024-2029 mandate, has been delayed from its original release date of 15 January to 29 January due to the hospitalisation of Commission President Ursula von der Leyen with pneumonia. Institutionally, the delay confirms that von der Leyen wants to take ownership of the initiative herself rather than leaving it to Vice-President Séjourné in her absence. This is not a surprise, as the strategy is essentially the Commission’s response to the Council’s endorsement of the Mario Draghi and Enrico Letta reports, and will shape future initiatives including the much-anticipated Clean Industrial Deal due in February. With the Commission preparing to tackle long-term economic challenges, the delay has only increased anticipation for the Compass’ release. In its quest to position the EU as a global leader in innovation, security, and sustainability, the Competitiveness Compass will play a key role in addressing the bloc’s most pressing issues. The document is expected to lay the foundations for a stronger, more resilient EU economy that can compete globally and lead industrial change.