BRUSSELS ― When Ursula von der Leyen returned for a second term as European
Commission president late last year, her advisers identified reforming the EU’s
next long-term budget as one of her toughest missions.
Full of hidden landmines, competing demands and squabbles from Lisbon to Latvia,
it was clear it wouldn’t take much for it to blow up in her face. Most
governments don’t want to give the EU a penny more than they already do ― the
European Parliament demands the opposite. The Ukraine conflict has sparked a
rapid need for defense investment ― yet the EU takes cash away from farmers at
its peril.
While those sort of tensions aren’t new, the bloc is more polarized than ever
and, despite a return to power that looked more like a coronation than an
election, von der Leyen’s political support is fragile, and looking increasingly
frayed.
The muddled and opaque way the budget for the seven-year period from 2028 was
announced on Wednesday didn’t help.
BICKERING OVER FIGURES
Planning had started early.
Anticipating a brutal negotiation, von der Leyen and her chief of staff, Bjoern
Seibert, kicked off talks with member countries as far back as 18 months ago,
before she even knew she’d have a second term in power, according to an EU
official. The idea was to gather input, avoid a messy fight down the line and be
able to present a budget that had considerable buy-in.
Merely on the evidence of the past 48 hours or so, that strategy appears shaky.
At the time Budget Commissioner Piotr Serafin was scheduled to present the plan
to the European Parliament on Wednesday at midday, officials were still
bickering over final figures. They had burned the midnight oil on Tuesday night,
with top officials from the teams of the 27 commissioners locked in talks in the
Berlaymont ― the Commission’s HQ in Brussels ― until 2am Wednesday, resuming at
8am.
Then the commissioners themselves, whose weekly meeting is usually a mere
rubber-stamping exercise, met on Wednesday lunchtime, and it turned into a
political dogfight almost right up until Serafin finally appeared for the
launch.
To the annoyance of MEPs and parliamentary officials, Serafin arrived four hours
late. The presentation was riddled with confusion about what the numbers exactly
meant and how they’d be calculated, and lawmakers were outraged for not having
received the figures beforehand.
“We hope you brought some document with you as well, as this distinguished house
has not been informed,” lawmaker Siegfried Mureșan sniped at Serafin, who hails
from the same center-right group.
In fact, even von der Leyen’s team of commissioners weren’t aware of the overall
figures until a few hours earlier.
Explaining the murky process, one official close to a commissioner said: “She
told us how much she would cut from our program but we didn’t know how much she
would cut from those of our peers.”
For everyone apart from the small close-knit group that the president confides
in, it made working out the exact overall policy incredibly difficult to
comprehend.
RAMSHACKLE ALLIANCE
In recent months, criticism of von der Leyen and her centralized way of
decision-making has increased but, for the first time, simmering internal
opposition burst to the surface. Commissioners, mainly those from different
political colors, forced her to back down.
Von der Leyen’s big idea had been to merge a plethora of different pots of the
budget into plans for each country that would only pay out when governments
carry out reforms. In her view, this system would have encouraged recalcitrant
countries to step up their game while increasing Brussels’ leverage over
capitals.
But as the weeks have gone by, a ramshackle alliance of farmers, regions and
lawmakers coalesced to push back against her big vision. Inside the Commission,
an unlikely union between a Romanian Socialist, an Italian right-winger and a
Luxembourgish moderate whose brother is a farmer demanded major concessions.
“They all managed to save face,” said a Commission official close to the
discussion. Another said they “fought hard and did all they could to protect
their policies.”
Faced with threats of major cuts to the EU’s giant farming budget, Agriculture
Commissioner Christophe Hansen managed to safeguard €300 billion that goes
directly in the pockets of farmers.
For the Common Agricultural Policy, “it’s not a revolution but an evolution,”
Hansen told reporters, in an effort to reassure angry farmers who protested on
Brussels streets on Wednesday.
Another open front for von der Leyen was Social Rights Commissioner Roxana
Mînzatu, who fought a rearguard battle to preserve the European Social Fund
which caters for the training of the unemployed and other vulnerable groups.
While she failed to secure an amount for the ESF, she obtained a commitment that
14 percent of the overall budget must account for social spending.
Meanwhile, Cohesion and Reforms Commissioner Raffaele Fitto pushed back against
the plan to expand the power of national governments to the detriment of
regions. He feared that such a project would have eroded his power within the
Commission and undermined the EU’s regional policy, which he oversees.
This was one of the thorniest issues during the two days of back-to-back
meetings between heads of cabinets of commissioners. In Fitto’s team’s meetings
with Seibert “it was all about this,” an official said. He secured a commitment
to ringfence €218 billion of funding directly for less-developed regions.
Von der Leyen has had a tricky start to her second term as Commission president.
She’s faced a European Parliament no-confidence vote and warned it was her
“absolute last chance.” She’s been confronted with accusations that she’s teamed
up with far-right lawmakers to push through legislation, ignoring the centrist
groups who helped her secure a second term. And she lost a court ruling over her
“Pfizergate” exchange of text messages with a Covid-19 vaccine maker.
The next two years of negotiations over the budget were never going to be easy.
The way it has started has made a tough job even tougher.
Nicholas Vinocur contributed reporting.
Tag - European Social Fund
STRASBOURG, France — Ursula von der Leyen on Thursday survived a no-confidence
vote in her leadership of the European Commission.
A majority of members of the European Parliament, who voted on a motion
submitted by the hard-right, backed the Commission president. If she had lost
the vote, von der Leyen and the rest of her Commission would have had to stand
down, throwing the EU into chaos.
360 MEPs voted against the motion, with 175 in favor and 18 abstaining. Out of
720 MEPs, 553 showed up to cast a ballot. The motion would have needed 357 votes
to pass.
While von der Leyen, as expected, lives to fight another day, her troubles are
far from over. The vote — the first such no-confidence attempt since 2014 —
exposes increasing political opposition to a Commission president who, like much
of Europe, seems to have drifted to the right, putting her at odds with two of
the major parties that brought her to power.
Von der Leyen may have survived but political families from across the spectrum
used the procedure to air their grievances against the Commission, whether on
transparency and the over-centralization of power, backtracking on the Green
Deal, or accusations of violating the EU’s institutional procedures.
It has also shaken up the coalition of parties that support von der Leyen’s
second term, with the Socialists and liberals increasingly at odds with the
Commission president.
In the run-up to the vote, both groups threatened to abstain over their concerns
that the Commission is drifting to the right.
However, the liberals backed down, saying they did not want to take part in the
extreme right’s “games” with Europe’s stability, according to a Renew
spokesperson.
The Socialists followed suit on Thursday evening after securing a concession
from von der Leyen on the EU’s long-term budget, which the Commission is slated
to present next week.
The Commission president promised the center-left she would keep the European
Social Fund, which is meant to tackle poverty and support vulnerable groups, as
part of the budget, despite earlier indications that it would be dropped.
Among Socialists and Democrats, said Parliament Vice President Katarina Barley,
many are determined that this will be the “absolute last chance.”
Gheorghe Piperea, a Romanian lawmaker from the right-wing European Conservatives
and Reformists (ECR), who brought the motion against von der Leyen, told
POLITICO that he expected the motion to fail, but that the exercise was healthy
for the EU. He added that he expects the move to “open Pandora’s box” by showing
that “it is possible” to challenge the Commission president.
Von der Leyen should brace for “several” more censure efforts, Piperea said.
The EPP disagrees. “The day we return from holidays, we would almost have
forgotten about this,” predicted EPP vice-chair Siegfried Mureșan.
This article has been updated.
Center-left lawmakers will not support Thursday’s motion of no confidence in
Ursula von der Leyen, giving a timely boost to the beleaguered European
Commission president.
In a U-turn, the European Parliament’s Socialists and Democrats dropped its
abstention threats, according to two group officials. To win their support, von
der Leyen promised to keep funds dedicated to social spending in the EU’s seven
year budget from 2028, which is currently being drawn up.
Had the Socialists abstained, von der Leyen would still almost certainly have
won Thursday’s vote, but it would have raised doubts about the Commission’s
support in Parliament and ability to push through legislation.
“S&D has achieved the inclusion of ESF+ [European Social Fund] in next MFF [the
EU’s long-term budget, known as the multiannual financial framework] ― a major
win for people across Europe,” said a group spokesperson.
“Yesterday the ESF+ was out of the MFF. Today it is in it, thanks to the
firmness of the S&D family,” the spokesperson added.
The motion of no confidence is expected to fail to meet the two-thirds majority
threshold, given the centrist groups, comprising von der Leyen’s center-right
European People’s Party, the Socialists, and the liberals of Renew Europe, have
now all confirmed they will vote against.
“Von der Leyen has made a major concession on a topic that is dear to the S&D,”
said MEP René Repasi, leader of the German SPD in the Parliament.
“I think that she finally understood what is happening in the Parliament after
Monday‘s debate and she saw the need to act,” he added. “We recognize this
effort and we take it into consideration when taking our final decision how to
vote tomorrow.”
Ahead of the presentation of the next EU seven year long budget slated for next
week, the Socialists, the second-largest group in the European Parliament,
linked their support to the preservation of the European Social Fund, which is
supposed to tackle poverty and support vulnerable groups.
Commissioner for social rights Roxana Mînzatu, herself a Socialist, also led a
push inside the EU executive to save the fund.
The EPP’s budget lead negotiator, Siegfried Mureșan, shrugged at the Socialists’
victory chants. This was always the S&D’s main demand, he said, adding that
regardless of the vote the Parliament was always going to demand the Social Fund
be included.
PAYMENTS TO REGIONS
Von der Leyen already conceded key Parliament demands on Tuesday evening to
secure the support of centrist MEPs.
The EPP’s budget lead negotiator, Siegfried Mureșan, shrugged at the Socialists’
victory chants. | Teresa Suarez/EPA
During a high-stakes meeting with party chairs in Strasbourg on Tuesday, von der
Leyen said that payments to regions — which currently make up a third of the
EU’s multi-year budget — will continue to be handed out to local authorities as
opposed to national governments in the new budget.
Supporters of the move said that von der Leyen’s about-face is a “gamechanger”
as it will make it harder for autocratic leaders, such as Hungary’s Viktor
Orbán, to cut EU funding to regions governed by political rivals.
Von der Leyen’s plan to dramatically increase the power of national governments
in handling regional funds has been criticized by lawmakers from across the
spectrum and by several of her own commissioners.
They argue that it would undermine local democracy and widen the gap between the
richer and poorer parts of Europe.
Sarah Wheaton contributed to this report.
European Commission President Ursula von der Leyen has promised more power for
EU regions in an effort to quell a brewing parliamentary revolt before
Thursday’s no-confidence vote.
Socialists and Liberals are threatening to abstain during the vote in an attempt
to squeeze political commitments from von der Leyen on the bloc’s next
seven-year budget, which she will unveil next Wednesday.
Von der Leyen extended an olive branch to critics on the eve of a crucial
no-confidence vote in the European Parliament that could severely dent her
leadership.
During a high-stakes meeting with party chairs in Strasbourg on Tuesday, von der
Leyen said that payments to regions — which currently make up a third of the
EU’s multi-year budget — will continue to be handed out to local authorities as
opposed to national governments in the new budget, two people in the room told
POLITICO.
Von der Leyen’s offer, however, was not enough to quell concerns from the
Socialists and Democrats, who have been increasingly critical of her leadership
in recent weeks.
“We missed clarity and commitment … If nothing changes, it will be difficult for
the S&D to decide not to abstain on Thursday,” a spokesperson for the group told
POLITICO after Tuesday’s meeting.
Von der Leyen is expected to survive the vote even if the Socialist and Liberal
parliamentary groups abstain, as the motion would need a two-thirds majority in
Parliament to pass. But it would send a strong message that she can’t count on
Parliament to back her unconditionally.
The Socialists, the second-largest group in the European Parliament, are linking
their support to the preservation of the European Social Fund, which is supposed
to tackle poverty and support vulnerable groups.
Commissioner for social rights Roxana Mînzatu, herself a Socialist, is leading a
push inside the EU executive to save the fund.
“If you cut this out of the budget, you hit Europe at its heart, and what will
remain is a Europe without a soul,” Socialist lawmaker Mohammed Chahim said in
the European Parliament.
CONCESSION TO REGIONS
Supporters say that von der Leyen’s about-face is a “gamechanger” as it will
make it harder for autocratic leaders, such as Hungary’s Viktor Orbán, to cut EU
funding to regions governed by political rivals.
Yet von der Leyen’s plan to dramatically increase the power of national
governments in handling regional funds has been criticized by lawmakers from
across the spectrum and by several of her own commissioners.
They argue that it will undermine local democracy and widen the gap between the
richer and poorer parts of Europe.
In a major concession, however, von der Leyen on Tuesday guaranteed that regions
will continue to directly receive amounts that are determined in Brussels.
She had previously announced the move in a private meeting with Polish Budget
Commissioner Piotr Serafin, who is also campaigning for a stronger role for
regions.
“This is an important demand for the European Parliament,” said Siegfried
Mureșan, the budget negotiator for the center-right European People’s Party.
Lawmakers and Italian regions commissioner Raffaele Fitto, however, are
pressuring von der Leyen to go one step further.
They support maintaining a mechanism ― known as the Berlin formula ― that
allocates a major share of the cohesion cash to underdeveloped regions across
the bloc.
Discussions over this sensitive issue are expected to be resolved over the
weekend during high-stakes talks between von der Leyen and several
commissioners.