Latvia's Valdis Dombrovskis was heckled by some MEPs at his hearing on Monday.

After six hours of testimony over the last week between Pierre Moscovici and Valdis Dombrovskis, some MEPs are still fuming that they have no idea which one will be in charge of ruling on national budgets as part of the EU’s annual review process.

Moscovici, the former French finance minister, has been nominated economics commissioner and is seen by centre-right MEPs as too lax on fiscal matters; Dombrovskis, a former Latvian prime minister, will be vice-president for the euro and seen by the centre-left as a disciple of the EU’s austerity school of economics.

As we reported last week, going into their confirmation hearings it looked like the two men would basically share the role. But neither gave clear answers of how their division of labour would work at their hearings, leading French MEP Sylvie Goulard, the top Liberal on the economics committee, to heckle Dombrovskis: “So we don’t know?” she shouted after he failed to explain who would represent the eurozone at international fora like the IMF and G-20.

In an effort to gain clarity, the economic committee leadership on Monday sent a letter to Jean-Claude Juncker, the incoming commission president, asking for further clarification. We’ve obtained his response, and posted it here. It doesn’t provide a huge amount of additional clarity. Read more

Hyon Hak Bong presenting his credentials to Queen Elizabeth two years ago

Hyon Hak Bong, North Korea’s envoy to the EU, has his work cut out.

The instructions from Pyongyang are clear: re-open a dialogue on human rights with the EU that was suspended in 2003. That’s a tall order in itself, but it is made even more difficult by the fact that he must simultaneously reassure sceptical Europeans that camps for political prisoners simply do not exist in North Korea.

Speaking to the Financial Times on a mission to Brussels, it was clear that the London-based ambassador was part of a broader Pyongyang charm offensive towards the EU. Last month, Kang Sok Ju, one of the supremos in the ruling Workers’ party, visited Germany, Belgium, Switzerland and Italy.

Currently seen as a destination for only the hardiest foreign investors, the impoverished nation of 25m would benefit from some more business with Europe (and the access to hard currency that brings). Real progress on that prickly human rights dossier would certainly help “develop relations further”, as Mr Hyon puts it.

North Korea wants the EU to stop co-sponsoring UN resolutions against Pyongyang’s human rights record, but Mr Hyon may find Brussels bureaucrats ever-so-fussy about those infuriating details – like the penal system. Europeans will be focusing on the testimonies of North Korean defectors, who describe the horrific conditions in the country’s gulags, telling of rape, summary executions, starvation and back-breaking labour in penal mines.

According to Mr Hyon, this is all a fiction. He said that the EU needed to understand who the defectors were: “These are the riff-raff who have escaped through fear of the legal treatment they will receive for their crimes. So they attack North Korea and take money to do so…. We do not have political prisons. We have prisons like those in Belgium and the UK, where prisoners are being educated.” Read more

Pierre Moscovici arrives in Paris for the government's confidence vote earlier this month.

One of the most highly anticipated confirmation hearings in the European Parliament this week will be that of Pierre Moscovici, the former French finance minister tapped to be the European Commission’s new economic chief, who will appear before the economic affairs committee on Thursday morning.

Members of the parliament’s centre-right grouping, the European People’s party, have vowed to give him a grilling on whether he will vigorously enforce the EU’s tough budget rules – particularly since he comes from a French Socialist government that has advocated more flexibility in the rules.

As we reported in today’s dead-tree edition of the FT, Jean-Claude Juncker, the incoming Commission president, took the unusual step of issuing a legal decision that spells out in black and white Moscovici’s relationship with the Commission’s new vice president in charge of the euro, Valdis Dombrovskis, a former Latvian prime minister with a reputation as a deficit hawk. Here’s the relevant paragraph:

 

 

We have posted the entire 6-page document here. Most of it is unsurprising boilerplate – though there is a somewhat intriguing US-style line of succession among the vice presidents on page 2, which ranks Dutchman Frans Timmermans first and Finland’s Jyrki Katainen last. Read more

Malmstrom makes a point during her unexpectedly contentious hearing on Monday

It is rare that an obscure bit of international trade arcana turns into a major political kafuffle, but that’s just what appears to have happened on Monday over a relatively obscure arbitration system proposed for a new EU-US trade pact.

Although there is much substance behind the dispute, what really has Brussels insiders buzzing is the role played by Martin Selmayr, the increasingly powerful head of Jean-Claude Juncker’s transition team.

According to several EU officials, Selmayr – a workaholic German lawyer who is expected to become Juncker’s chief of staff when the Luxembourger assumes the European Commission presidency – changed the written testimony of Cecilia Malmström, the incoming trade commissioner, before it was submitted to the European parliament without her knowledge.

Dutch Liberal Marietje Schaake, a rising star within the European parliament, first made the accusation publicly during Malmström’s confirmation hearing on Monday afternoon (a video of her revelation can be seen here).

Schaake’s allegation is supported by a copy of the commissioner’s final testimony obtained by Brussels Blog and posted here. The document shows dozens of edits made by Selmayr that were recorded by the word processing programme’s track changes at 8:38am on Sunday. MEPs say the testimony landed in their in-box less than 20 minutes later. Read more

Lord Hill says that there will be no exceptions for member states who fail to jump into line on banker bonuses. Read more

Commission nominee Phil Hogan, left, with Irish prime minister Enda Kenny

Much of the back-room plotting ahead of next week’s European Parliament confirmation hearings for the new European Commission has focused on four controversial nominees who are likely to face a tough grilling: Britain’s Jonathan Hill, Hungary’s Tibor Navracsics, Slovenia’s Alenka Bratusek and Spain’s Miguel Arias Cañete.

But suddenly Ireland’s Phil Hogan has moved into a strange spotlight.

The incoming agriculture commissioner has threatened Irish MEP Nessa Childers with legal action over a letter she sent to fellow parliamentarians opposing his appointment as commissioner.

In the letter (which we have posted here), Childers alleges that Hogan, while a member of the Irish parliament, agreed to try to prevent a “Traveller family” from moving into public housing in his constituency. Childers argues this makes him an unsuitable nominee.

Hogan has responded by sending some letters of his own: legal threats from his lawyers at Mason Hayes & Curran, alleging that Childers’ claims were untrue and defamatory. We have those three letters, labeled “strictly private & confidential”, here, here and hereRead more

Juncker's "key political challenges" session will feature Ukraine, EU-US trade and budget rules

Fresh with their newly-minted portfolios in hand, the 28 members of the incoming Juncker commission headed off for an “informal seminar” on the outskirts of Brussels by bus Thursday morning for a bit of team-building.

As we reported in this morning’s dead-tree edition of the FT, one of the highlights of the two day gathering will be a debate this afternoon on the EU’s budget rules between the new economic affairs commissioner, France’s Pierre Moscovici, and one of the new economic vice presidents, Finland’s Jykri Katainen.

According to a copy of the agenda for the two-day event, which Brussels Blog got its hands on and has posted here, the budget rules are one of three “key political challenges” that will be debated in a two-hour session after lunch. The other two are Ukraine and the increasingly controversial EU-US trade agreement. Read more

Russian president Vladimir Putin visits a Rosneft oil refinery on the Black Sea last year

EU ambassadors head into yet another meeting Friday afternoon to hammer out the latest round of sanctions against Russia. Their bosses have promised to get things done by the end of the week, but there’s still a lot of work to do, so it’s not entirely clear whether a deal can be reached. Also, the on-again, off-again Ukrainian ceasefire could slow things down, though allies don’t appear to be giving much credibility to the Kremlin’s protestations that they are working towards a truce.

As we wrote in today’s dead-tree edition of the FT, we got a leaked copy of the draft legislation approved by the European Commission on Wednesday and sent to national capitals for today’s deliberations. The 18-page text is filled with a lot of jargon and technicalities, but because they could directly affect financial markets, the details matter.

For that reason, we are offering Brussels Blog readers more detail here. Remember: the EU ambassadors could still change much of the wording in their negotiations – though if the July sanctions are any indication, the changes are likely to be on the margins. Read more

There is only one topic in the brasseries of Brussels, at least among the EU crowd: Which portfolios will President-elect Jean-Claude Juncker give to his 27 incoming commissioners? Which is why we here at Brussels Blog were rather pleased when the organisation chart above purporting to show where the negotiations stood last Saturday landed in our in-box.

We had no obvious reason to doubt its authenticity when we got it. Such leaks are commonplace in Brussels, and are occasionally a lubricant for political negotiations. Without going into too much detail, it was realistic to conclude the document was being worked on by Juncker’s inner circle.

But once we took a closer look at the line-up, we began to scratch our heads. The negotiations are fluid and the document is three days old, so there would naturally be changes. But it went beyond that. After a call to several trusted sources involved in the talks, it quickly became clear that something strange was afoot. The chart includes glaring inconsistencies, unbelievable political gambles and factual inaccuracies – all set amidst a few things that ring absolutely true.

At the FT, we’ve had a long discussion about how to handle this leak. We’ve decided to publish the chart with a serious health warning, as well as a guide to what is wrong and what may be correct (whether by accident or design). We leave the rest to the Poirots of Brussels, who seem to like nothing more than chewing over what Juncker may decide. Can Brussels survive another week of this speculation-fest? Read more

Russia's Vladimir Putin, right, talks to EU foreign policy chief Catherine Ashton last month in Minsk

As we reported in today’s dead-tree edition of the FT, we got our hands on the three-page Russia sanctions options paper circulated by the European Commission and the EU’s diplomatic corps to national delegations yesterday that, for the first time, raised the spectre of boycotting the 2018 World Cup, to be hosted by Moscow.

But the meat of the document is the actual sanctions that are likely to be agreed this week; the World Cup suspension is clearly mentioned as something that only would be considered in the future. So as is our tradition here at the Brussels Blog, we thought we’d provide readers a bit more detail, including excerpts from the document itself.

First, though, here’s the language on the World Cup, which also includes a mention of UEFA, the Union of European Football Associations which organises and runs all international competitions for European soccer clubs – including Russia’s. Read more