Berliner Boersenzeitung - New EU commission gets green light to launch defence, economy push

From supporting Kyiv against Russia's invasion to war in the Middle East, China's economic rivalry and the imminent return of Donald Trump to the White House, the incoming European Commission takes office at a time of escalating challenges.

"We have no time to waste. And we must be as ambitious as the threats are serious," von der Leyen told European Union lawmakers in Strasbourg ahead of the confirmation vote.

"Our freedom and sovereignty depend more than ever on our economic strength," said the commission chief, who announced a headline push on competitiveness within 100 days, and vowed to personally helm a "strategic dialogue" on the future of Europe's struggling car industry.

"Our security depends on our ability to compete, innovate and produce," she said.

The new EU executive has been in preparation since the 27-nation bloc held European elections in June.

It is to formally start its mandate on Sunday, after lawmakers gave it the final all-clear with 370 votes in favour, 282 against and 36 abstentions.

After the vote, a smiling von der Leyen hugged members of her team and some of the political leaders that supported her.

Right, centrist and centre-left groups in the EU parliament last week struck a deal to back the new 27-member commission, skippered by the 66-year-old German, for a second term.

That came after all nominees put forward by member states were -- for the first time in decades -- cleared individually, though only after political horse-trading.

- Weapons and tariffs -

The top roles in the new commission speak of the priorities for the next five years.

Estonia's ex-premier Kaja Kallas is to become the bloc's top diplomat, while Lithuania's Andrius Kubilius landed a new role overseeing the EU's push to rearm.

Both are hawkish Russia critics.

Von der Leyen said Wednesday there was "something wrong" when Moscow is spending up to nine percent of GDP on defence against the EU's 1.9 percent.

"Our defence spending must increase. We need a single market for defence. We need to strengthen the defence industrial base," she said.

She has previously said the bloc needs to invest 500 billion euros ($526 billion) over the next decade to keep up with Russia and China.

This has become more urgent since Trump was re-elected as US president, amid fears he might reduce the US commitment to European security and support for Ukraine.

Similarly, trade policy -- under Maros Sefcovic of Slovakia -- has shot up the agenda as the bloc will contend with a tariff-loving US president who could push for the EU to buy more American products or face higher duties.

Von der Leyen did not name Trump in her speech, but said Europe had to close the "innovation gap" with the United States for its economy to thrive.

Stephane Sejourne of France is to take charge of industrial strategy at a time when manufacturing is struggling amid competition from China, high energy costs and weak investment.

The former French foreign minister will have to work with Spain's Teresa Ribera, the new competition and green transition chief, to reconcile economic growth with climate ambitions.

"We urgently need more private investments," von der Leyen said, adding work was needed to "make it easier" for companies to grow in Europe.

- 'Strengthened' chief -

With weakened political leadership in France and Germany, von der Leyen might play an even larger role in shaping Europe's future in her second term, analysts say.

The former German defence minister has significantly "strengthened her power and her profile as a political actor" over the past five years, said Luigi Scazzieri of the Centre for European Reform think tank.

She has weeded out commissioners she did not agree with, such as France's Thierry Breton, and benefited from a political alignment that has seen countries fill her new team with fellow conservatives.

In her first term, she also pushed the boundaries of what the EU can do.

Under her leadership, the commission shepherded efforts to purchase Covid-19 vaccines, use joint borrowing to finance post-pandemic economic recovery, ship weapons to Ukraine and wean Europe off Russian gas.

"Let's get to work," von der Leyen said, closing her remarks to lawmakers.

(K.Lüdke--BBZ)