The EU’s new promise: less bureaucracy, a stronger industry
The European Union has historically been known for its bureaucracy and numerous regulations. However, Ursula von der Leyen’s second term promises to focus on reducing bureaucracy and supporting economic growth and investment. Her goal is to reduce companies’ reporting obligations and to adapt major policies, such as the Green Deal, to economic realities. In the mission letters sent to commissioners, she even added a separate chapter titled: Making Europe simpler and faster. Still, there are fears that the Commission might create more bureaucracy while trying not to.
Before the new Commission can take office, the commissioner-designates must go through hearings in the European Parliament, which have been concluded by now. Not all future Commissioners have received Parliament’s approval as of today, but political analysts believe that the entire College will nevertheless be appointed next week. To better prepare the commissioners for the upcoming term, President von der Leyen sent mission letters to all commissioner candidates, providing insights into the new Commission’s policies. The tasks set for the commissioners are largely based on the Mario Draghi report on EU competitiveness published in September, which painted a rather bleak picture of Europe’s future if concrete steps are not taken.
Although the mission letters are quite general, and details will emerge during the term, it is clear that the so-called umbrella policy will be the Clean Industrial Deal which will focus on attracting investments and simplifying public procurement rules.
The responsibility for presenting the Clean Industrial Deal lies with the Frenchman Stéphane Séjourné, who has been nominated for Executive Vice-President in charge of Prosperity and Industrial Strategy. His main task is indeed to develop Europe’s new industrial strategy. He must create conditions for industries to invest, aiming for greater (technological) sovereignty in Europe. Innovation, research, and technology are central to his portfolio.
Séjourné is also partially responsible for the European Competitiveness Fund and reviewing public procurement directives to ensure Europe can access critical technologies. Implementing and advancing the Critical Raw Materials Act is also one of his tasks. He will propose new specific measures such as a Circular Economy Act, a new Chemicals Industry Package, a European Biotech Act, a steel and metals action plan, and a Standardisation Regulation.
The Commission’s largest share of new tasks has undoubtedly gone to the Spaniard Teresa Ribera Rodríguez, who has been nominated as Executive Vice-President responsible for a Clean, Just and Competitive Transition.
Her task is to update EU policies to support European companies in global competition and contribute to broader competitiveness, sustainability, and security goals. Since von der Leyen’s idea in the new Commission is to reduce personal fiefdoms and thereby ensure greater college cooperation, the responsibilities and even titles of the commissioners largely overlap.
Under the Clean Industrial Deal, Ribera must also focus on developing a framework to simplify new state aid rules to accelerate renewable energy adoption, tackle industrial carbon emissions reduction, and ensure adequate production capacities.
She will also focus on the challenges facing SMEs and oversee the implementation of the European Competitiveness Fund, and under it, make proposals for so-called Important Projects of Common Interest in strategic sectors. The classic competition portfolio elements such as assessing the impact of major mergers on competition, also remains under her purview. There, she must also consider the changed defence and security landscape.
In light of the changed security situation, the position of Defence Commissioner has been created to be filled by former Lithuanian Prime Minister Andrius Kubilius. His task is to create a European Defence Union in close cooperation with member states and NATO. Within the first 100 days he is expected, in collaboration with High Representative Kaja Kallas, to produce a White Paper on the Future of European Defence, which will shape a new approach to defence and identify investment needs. Kubilius will also be responsible for creating a Single Market for Defence products and services to increase production capacities in Europe and encourage joint procurements. In the new term, the Commission will also pay special attention to SMEs and propose ways to improve their integration into supply chains.
Kubilius will also be responsible for developing a European cyber defence common project, implementing and monitoring the European Defense Industry Programme, and strengthening the European Defence Fund to increase investments in high-level defence capabilities in critical areas such as naval, air combat, and space-based early warning systems. In the space domain, he will promote the space industry by creating common standards and regulations.
The digital portfolio, a favourite topic among Estonians, will be managed by Finnish Henna Virkkunen, who has been nominated for the position of Executive Vice-President responsible for Tech Sovereignty, Security and Democracy. Her broader task is to lead Europe out of the situation where only four of the world’s 50 largest technology companies are from Europe.
Virkkunen must foster AI innovation and, within the first 100 days, ensure access to tailored supercomputing capacity for AI start-ups and industry through the AI Factories initiative. She will also establish a European AI Research Council.
Virkkunen’s new responsibilities include drafting the EU Cloud and AI Development Act and the EU Data Union Strategy. She will continue developing the existing Chips Act but also propose a long-term EU Quantum Chips plan.
Work in Europe will continue with secure, fast, and reliable connectivity – for this, she will introduce a new Digital Networks Act. The Digital Services Act, Digital Markets Act, and the EU Wallet adopted in the previous mandate must be better enforced. She will also be responsible for greater digitalisation and cyber resilience of the Commission as an institution.
Energy will be handled by Dutchman Wopke Hoekstra, nominated as Commissioner for Climate, Net Zero, and Clean Growth, and Dane Dan Jørgensen, nominated as Commissioner for Energy and Housing. Hoekstra will focus on issues related to decarbonisation, such as meeting emission reduction targets under a European Climate Law, establishing an Industrial Decarbonisation Accelerator Act, creating net zero infrastructure, and phase out fossil fuel subsidies. At the same time, Jørgensen is tasked with completing the Energy Union. Among other things, the rules for establishing the Energy Union should lower energy prices, increase investment in clean energy production, and develop grid infrastructure. An action plan to end energy imports from Russia is also to be submitted. Europe wants to accelerate the adoption of small modular reactors and address carbon capture and storage issues.
Setting the goal for commissioners to reduce administrative burdens and simplify legislation is, of course, a response to public pressure. Large companies who do have the resources to comply with regulations have also criticised Brussels for fragmentation, unpredictability, and being anti-innovation. Mario Draghi has pointed out that since 2019, the EU has adopted 13,000 pieces of legislation, while the US has adopted about 3,000 over the same period. As can be seen, even the abovementioned six commissioners out of 27 have substantial tasks ahead with both existing and new laws. Creating regulations, with all the associated strategic dialogues, impact assessments and consultations, is indeed the work of the Commission. It would likely be challenging to make a mark by doing nothing.
