Europe headed to muscular industrial policy

Power grab. Ursula von der Leyen has not wasted time stepping into void created in Europe by weakening of France’s and Germany’s governments. Tuesday’s allocation of senior roles by president to her fellow European Commissioners can be seen as a power grab that increases her influence over main issues that will shape EU’s economy during next five years. Expect Brussels to be tougher on tre, looser on competition policies, and more indulgent toward of muscular policy that France, through its own envoy, will keep defending.

Commission president, recently installed for anor five-year term, has cemented her power by having commissioners in charge of key portfolios report directly to her, rar than to executive vice presidents that sit beneath her. She has also appointed some relatively inexperienced commissioners to key portfolios.

Competition matters will be overseen by new Executive Vice President Teresa Ribera. former Spanish ecology minister, a socialist and novice on antitrust issues, is unlikely to form a quick doctrine on her brief which, given its critical role in policing single market, is one area where Commission wields real power. That suggests grual loosening of once-strict approach defended by former competition czar Margre Vestager can be expected to continue, with von der Leyen’s influence increased while Ribera embarks on her own learning curve. Paris and Berlin often criticised Vestager’s decisions, which sometimes elevated competition concerns above need to create European industrial champions. y may have fewer reasons to do so now.

all-important tre portfolio, meanwhile, will be remit of Maros Sefcovic, who will report directly to von der Leyen. Slovak has been a member of Commission for 15 years and was more recently tasked with negotiating with UK on post-Brexit arrangements. He has authority of his own but is new to tre matters. Von der Leyen is refore likely to continue her tough stance on China, more recently at odds with national governments such as Germany and Spain on tariffs.

Finally, industrial policy will be part of portfolio of Stéphane Séjourné, French representative President Emmanuel Macron appointed three days ago after von der Leyen refused to give a major portfolio to outgoing commissioner Thierry Breton. Séjourné, a Macron minion, may have been appointed executive vice president, but his remit has shrunk compared to Breton’s. But it still means that industrial policy will have a strong French scent, which will matter when subsidies or state aid will be debated among 27 commissioners.

With French president weakened at home by two successive election losses and German coalition government paralysed by its divisions with less than a year to live, von der Leyen h an opportunity to jump and seize rudder. Paris and Berlin will have to do with a resurgent Brussels.