Brussels 2009 - the same as London 1641 or Versailles 1789?

June 23rd, 2009 9:34am

Is José Manuel Barroso’s reappointment as European Commission president in trouble?  Probably not.  But the jury is still out on whether he will secure formal approval from the European Parliament as early as mid-July.  If he does not, it will be difficult to dispel the clouds of doubt that will linger over his future for two months or more.

Such uncertainty is hardly what the European Union needs at a moment when its banking system faces hundreds of billions of euros in losses this year and next, and when Germany and France, the eurozone’s two biggest economies, appear utterly at odds over when and how to rebalance their public finances.

The EU’s 27 national leaders decided unanimously at a Brussels summit last week to support Barroso’s reappointment.  It was not a legally binding decision.  They could, in theory, change it if there were massive resistance in the European Parliament.

But that’s certainly not Plan A.  Leaders such as Fredrik Reinfeldt of Sweden, which is about to assume the EU’s rotating presidency, French President Nicolas Sarkozy and German Chancellor Angela Merkel want the European Parliament to hold a vote next month to confirm Barroso for a second five-year term.

Barroso’s centre-right allies, known as the EPP, are the legislature’s largest political group.  They are happy enough to hold an early vote.  But they control only 264 of the assembly’s 736 seats.  Three other groups - the socialists, centrist liberals and Greens - say they would prefer to delay the Barroso vote until September or October.

Barroso correctly sees that he must win an absolute majority - 369 votes or more - if he is not to suffer serious political injury.  If we assume that he will pick up every single EPP vote, where is he going to get the other 105 votes from?  He knows it would be fatal to turn for backing to the far-right, nationalist and anti-EU fringe elements in the legislature.

Barroso can probably count on three sources of support.  First, there is the new conservative, “anti-federalist” group led by the UK Tories.  It has 55 members (or even, as of Tuesday, 56 - a politician from Lithuania’s Polish minority appears interested in joining).  Secondly, up to half of the 80-strong liberal group in the European Parliament can surely be coaxed into supporting Barroso.  Finally, there are even some socialists - especially in Barroso’s native Portugal as well as Spain and the UK - who are inclined to back him.  All told, that should see Barroso over the 369-vote mark.

But this is not the whole story, because even some of these parliamentarians may object to holding the vote in mid-July.  In the end, this whole saga is less about Barroso’s leadership qualities than it is about the European Parliament’s desire to assert itself as one of the EU’s most powerful institutions.

“Brussels 2009″ doesn’t have quite the ring of 1641 in the English House of Commons, or 1789 in Versailles.  But the situation contains some interesting dramatic potential, that’s for sure.

EU lawmakers slip up on a Barroso banana skin

June 17th, 2009 1:30pm

Back in 1970 or so, there was a children’s Saturday morning TV show called “The Banana Splits”, in which some ludicrous character or other would frantically splutter “Hold the bus!” - always too late, for the bus would proceed on its way regardless.  It is an irresistible temptation to compare the four Banana Splits of 40 years ago - Bingo, Fleegle, Drooper and Snorky - with certain members of today’s European Parliament.

For while the legislators are busy spluttering “Stop Barroso!”, they are saying it much too late.  José Manuel Barroso is proceeding on his way to reappointment as European Commission president.  In fact, the entire episode threatens to show the European Union in the worst possible light, after EU-wide elections to the European Parliament that, with their record low turnout, were themselves not exactly a ringing endorsement of the way the EU conducts its business.

Barroso is the only declared candidate for the Commission presidency, and he has the support of national political leaders across the political spectrum - centre-right, centre and centre-left.  True, he is not seen as the most inspiring or visionary of Commission presidents.  But that is, in a sense, exactly the quality that many national leaders are looking for - and the job is in their gift, subject to the parliament’s approval.

If socialist, liberal or Green politicians in the European Parliament wanted to prevent Barroso from getting a second term, they should have fought this battle before the elections to the assembly.  Each should have rallied behind a candidate of their choice.  But they did not.  The socialists were too divided even to come up with a candidate of their own.  The opportunity was lost.  It was their own fault.

Now the socialists and Greens have the nerve to suggest that the EU’s national leaders would in some way be guilty of treating the parliament with disdain, if they were to nominate Barroso at the EU summit in Brussels on Thursday and Friday and then pass on his name to the parliament for approval.  But in truth, this is precisely the procedure set out under EU rules.

All that the average European citizen cares about is having a Commission president in office who gets on with his job.  Squabbling and muscle-flexing among European Parliament politicians who, like the Banana Splits, have missed the bus is not of the slightest interest to anyone - except perhaps the EU’s critics, who will gleefully point out that the newly elected legislators appear to have learnt no lessons whatsoever from the recent election campaign.

Food For Thought: Gordon Brown as the EU’s First Full-Time President?

June 15th, 2009 2:49pm

José Manuel Barroso is all but certain to be reappointed as European Commission president.  But who will get the other plum European Union jobs that will soon be up for grabs?

The most startling suggestion I have heard in recent days - and it came from a high-ranking EU diplomat - is that the EU’s first ever full-time president could be none other than Prime Minister Gordon Brown of the UK.  The thinking here is that, because the job will require its holder to represent the EU on the world stage, it would suit Brown well.  He has oodles of experience and excellent connections at the highest level, starting with President Barack Obama.

Of course, Brown may have other career plans, such as winning the next British general election and stabilising the British economy.  But if for some unimaginable reason these plans didn’t work out, might there be life after political death for him in Brussels?

It has always been accepted that the EU’s first president - who will serve a two-and-a-half-year term, renewable once - must be a sitting or former prime minister.  But beyond that, the EU’s Lisbon treaty fails to say a great deal about what qualities he or she ought to have.  The president will prepare and chair the EU’s regular summits of national leaders, a role which indicates that he or she will have to be a conciliator and a honest broker, not a temperamental or divisive figure.

He or she will also need to have a good working relationship with Barroso.  But the president must not be an obscure, low-profile politico, because then leaders such as Prime Minister Vladimir Putin of Russia will make mincemeat of him or her.  And the Lisbon treaty says nothing about whether the president must come from a eurozone country, rather than a non-euro area state such as the UK.

Tony Blair’s name has been mentioned numerous times in connection with the EU presidency job.  But there has always been the nagging feeling in Brussels that his candidacy would be blocked by a country nursing a grudge against him (such as Belgium).  At the same time, quite a few policymakers recognise that the scale of the security and economic challenges facing the EU is such that the first president needs to be a person of true international stature.

Angela Merkel or Nicolas Sarkozy, the German chancellor and French president, would fit the bill, but neither is remotely interested.  It would be nice to think of an Italian in the job, but something tells me that the EU isn’t about to entrust its fate to Prime Minister Silvio Berlusconi.  That leaves the UK - and the clergyman’s son from Glasgow.

Inside Brussels: the 30 power players

June 3rd, 2009 6:15pm

the 30 power players

Inside Brussels: the 30 power players

Find out which 30 people matter most in the EU capital, in the FT’s guide to who really holds policy-making influence both in public and behind the scenes. Share your views below and leave us your suggestions for the 30 eurostars.

Further reading:

Latest news from Brussels



Ring out the recession, ring in the après-crise

May 25th, 2009 1:11pm

Never mind the recession, what about the après-crise?  Hope springs eternal in the human breast, wrote Alexander Pope.  And so it is that fashionable Europeans are devoting their thoughts not to the mundane matter of extracting their continent from the worst economic crisis in four generations, but to the altogether more interesting question of how to enjoy the post-recession future. Continue reading "Ring out the recession, ring in the après-crise"

Barroso’s impotent EU critics hop with fury

May 13th, 2009 12:10pm

Across Europe, politicians of various political stripes are stamping their feet in impotent fury. José Manuel Barroso, the centre-right Portuguese leader who has served as European Commission president since 2004, seems strongly placed to secure a second five-year term. His enemies and critics would love to stop him, but all they can do is boo from the sidelines like disappointed children.

Barroso’s adversaries, especially on the left, have only themselves to blame. If they wanted to torpedo his reappointment, they should have put forward a candidate for Commission president in next month’s European Parliament elections. But petty rivalries, unseemly personal ambitions and a good deal of incoherent political tactics put paid to that. By contrast, Europe’s centre-right parties rallied behind Barroso, even if some supporters held their noses when they agreed to back him.

The task of appointing a Commission president lies with the leaders of the European Union’s 27 national governments, who, when they make their choice, are supposed to take account of the results of the latest European Parliament elections. Barroso has been busy hoovering up support over the past two years from heads of state and government such as France’s Nicolas Sarkozy (centre-right), Germany’s Angela Merkel (centre-right), the UK’s Gordon Brown (centre-left), Spain’s José Luis Rodríguez Zapatero (centre-left) and quite a few others.

It’s true that some heavyweights in the pro-Barroso camp, when pressed, don’t sound especially passionate about his abilities or his record at the Commission. But when EU leaders gather in Brussels for a post-election summit next month, it is hard to see how any name other than Barroso’s will win approval. Though he has come under fire for his inadequate crisis management last September and October during the near-meltdown of Europe’s financial system, the simple truth is that, on the whole, he hasn’t caused much offence to anybody.

Except, of course, a large number of leftists, centrists, Greens and others who sit in the European Parliament. Belatedly, Daniel Cohn-Bendit, the Franco-German Greens co-president, has appealed this week for a socialist-Green alliance, with others welcome to join, that would be big enough to deter EU leaders from nodding through Barroso’s reappointment.

But still the question remains: Who would the socialists prefer to run the Commission? I am in the dark - but I get the impression there’d be little point asking Martin Schulz, the German leader of the parliament’s socialist group. He simply won’t be drawn on the matter. Whether that’s because he has his eye on becoming Germany’s next member of the Commission, replacing Günter Verheugen, only time will tell.

Sarkozy reconsiders his support for a Barroso second term

March 3rd, 2009 11:33am

Who will be the next European Commission president? Until recently, José Manuel Barroso looked comfortably placed to secure reappointment for a second five-year term at a summit of EU leaders in June. Now the picture is not so clear.

French President Nicolas Sarkozy put the cat among the pigeons on Sunday when he refused to reaffirm the support for Barroso’s candidacy that he had offered during France’s spell last year in the European Union’s rotating presidency. “I like Mr Barroso a lot, I’ve enjoyed working with him, I have confidence in him,” Sarkozy said, his words sounding ever more hollow the longer his sentence stretched on.

Sarkozy suggested it might be best to wait until Ireland has held its second referendum on the EU’s Lisbon treaty - perhaps in October - before choosing the next Commission president. For the pro-Barroso camp, this proposal was out of order. EU leaders had decided at a summit last December that they would select the next Commission chief in June.  If every leader went round disregarding things that have already been agreed, where would the EU be?

It’s doubtful that such arguments cut much ice with Sarkozy. His eyes are fixed on June’s European Parliament elections. His socialist and centrist opponents will try to paint him as being in the same “neo-liberal” economic policy camp as Barroso. It’s quite hilarious, really. Viewed from Brussels, Sarkozy looks nothing like a neo-liberal, but rather like a classic French dirigiste.

Be that as it may, Sarkozy doesn’t want to be identified with an economic philosophy that is seen in France as having brought the world economy to its knees. For French electoral purposes, this philosophy is symbolised by Barroso.

Almost certainly, however, there is another reason for Sarkozy’s doubts about Barroso. The French president thinks the world economic turmoil is an epoch-changing event, one that will bury a certain type of capitalism forever, and one that demands the most creative thinking and vigorous action possible in response. He thinks Barroso and the European Commission in general are missing the point and are haplessly fighting yesterday’s battles.

Perhaps Sarkozy has a point. But if so, which European politician does he think has got the vision, dynamism and courage to do the job? Or would he, in fact, prefer a tame Commission president, who meekly took instructions from a certain visionary, dynamic and courageous leader in the Elysée Palace?

European Parliament: Highlight of the Week (4)

February 27th, 2009 11:41am

According to a combination of 19 national opinion polls, the winner of the June 2009 European Parliament elections will be the centre-right European People’s Party, which is projected to pick up 265 of the 736 available seats. The Socialists are predicted to win 195 seats and the liberals 95, with the rest divided among the far left, Greens and rightwing nationalists.

The centre-right is therefore on track to remain the parliament’s largest force, an outcome that would boost José Manuel Barroso’s chances of reappointment as European Commission president.

http://julienfrisch.blogspot.com/2009/02/european-parliament-elections-2009-55.html

Big job, tiny electorate: Barroso set fair for a second term

January 21st, 2009 2:03pm

José Manuel Barroso’s campaign for a second term as European Commission president is coming along nicely. Last week he secured a public endorsement for the first time from Gordon Brown, the UK premier.

Of course, it’s hardly a campaign in the normal democratic sense. European voters aren’t directly involved. The vast majority probably has no idea what’s going on. The selection of the Commission president, one of Europe’s most powerful jobs, rests with the 27 leaders of the European Union’s member-states.

This is an electorate so small that it rivals those obscure English university clubs whose members are said to launch ritual attacks on foxes with champagne bottles. Even the body that chooses the pope, which is drawn from the Roman Catholic Church’s College of Cardinals, is at present more than four times bigger, with almost 120 cardinals aged under 80 and eligible to vote.

Still, this is the way Europe operates, it’s written into the EU’s rules, and very few leaders seem inclined to change it. You can’t blame Barroso for working the system as he finds it.

And there can be no doubt that he is working it very cleverly. Brown likes Barroso not only for his liberal economic instincts, but because he thinks the centre-right former Portuguese prime minister would strike up a good relationship with President Barack Obama - an important consideration for Europe in the early months of the new US administration.

With Brown in the bag, you may ask, how can Barroso fail to get a second five-year term? For Barroso already has the public backing of centre-right heavyweights such as France’s Nicolas Sarkozy and Italy’s Silvio Berlusconi. Other centre-right leaders such as Germany’s Angela Merkel and Jean-Claude Juncker, Luxembourg’s long-serving prime minister, have also signalled their support, as has Hans-Gert Pöttering, president of the European Parliament.

On the left, meanwhile, Portugal’s José Sócrates and Spain’s José Luis Rodríguez Zapatero are behind Barroso. So, too, is Matti Vanhanen, Finland’s centrist prime minister.

Doubtless this explains why Martin Schultz, the German leader of the European Parliament’s socialist group, says of Barroso: “In terms of his politics, he is a very vague person. One day he is left-wing, the other he is liberal, the next he is conservative. We want a socialist at the head of the Commission, but unfortunately it is the European Council [of national leaders] that nominates.”

But perhaps European public opinion may exert some influence on the process, after all. The European Parliament is up for re-election in June, and if centre-left and liberal parties across Europe were to inflict a heavy defeat on the centre-right - at present, the largest group in the legislature - then it is conceivable that pressure would grow to replace Barroso with a nominee from the political family that had triumphed at the polls.

After all, the man or woman picked by EU national leaders as Commission president must still win approval from the European Parliament in a vote of confidence. And EU leaders are anxious to settle the matter of who should run the Commission as quickly as possible - in other words, at a summit scheduled for June 18-19. If the left had just scored a big election victory, the legislature might not be in the mood to offer a tame endorsement of Barroso’s re-nomination.

Knowing how the EU works, however, one can imagine a more likely scenario: a compromise under which Barroso is re-appointed, but he agrees, when putting together his new Commission, to give it a political balance that reflects the European Parliament election results.

It’s not exactly democracy as practised in the recent US presidential election campaign, primaries and all. But it’s very, very European.

Be bold, Angela, and talk about yield spreads at the EU summit

December 10th, 2008 2:06pm

More than six weeks ago, I drew attention to the way that the global financial crisis was testing the eurozone’s stability by widening the yield spreads between German and other government bonds. This topic won’t exactly dominate the two-day European Union summit that starts in Brussels on Thursday, but you know what? Perhaps some leader or other - Angela Merkel, for example - should mention it.

Because the fact is that the problem is more serious today than it was in late October. Back then, the spread between German and Italian 10-year bonds was 95.6 basis points, compared with 72.3 a week earlier, 69.6 a month earlier and 25.8 a year earlier. Today the spread is 129.9 basis points, compared with 122.8 a week earlier, 91.9 a month earlier and 26.9 a year earlier.

The spread with Greek government bonds hit 174 basis points this week, compared with about 120 points when I was blogging in late October. Bond traders will tell you this has little or nothing to do with the urban riots that broke out last weekend and represent the most serious violence in Greece for six decades. I agree - but I would add that the picture of an unpopular government helpless in the face of street battles, arson and looting hardly helps.

In any case, the yield spreads are attracting attention at the European Central Bank’s highest levels. Here is what Jürgen Stark, the German member of the ECB’s executive board, wrote in an article in today’s Wall Street Journal Europe: “Interest rate spreads for government bonds are already very high in some euro area countries. Moreover, the current calls for a particularly loose application of the European Union’s framework of fiscal rules questions the credibility of politicians’ commitment to sound public finances.”

If you are looking for an explanation as to why Merkel’s government will only reluctantly sign up to the EU’s planned €200bn fiscal stimulus to overcome Europe’s recession, here it is in a nutshell - kurz gesagt, as the Germans say. They think the integrity of the EU’s fiscal framework, and hence the very future of the eurozone itself, is being put recklessly at risk.

And who knows? They may be right. Certainly, José Manuel Barroso, the European Commission president, sees the problem. Though a supporter of a well-timed, carefully planned fiscal stimulus, he told me this week: “I sense in the German position the traditional, prudent approach to spending that is very rational, reasonable and wise. We have to respect the way Germany sees the situation and the way they take decisions.”