European Commission President Unveils Proposed New Team of EU Commissioners and Political Priorities

On September 17, 2024, Ursula von der Leyen, re-elected president of the European Commission, presented her new proposed College of Commissioners, who will together lead under the flagship theme of "competitiveness in global markets." Following hearings and a vote in the European Parliament, the new commission will be formally appointed. It will then set out its detailed political priorities for the next five years and take office. This is expected to take place at the end of this year.  

New Missions: What to Expect

The College of Commissioners consists of 27 commissioners, one for every EU Member State. President von der Leyen's mission letters to each of the EU's new commissioners-designate provide a first glimpse of what the EU's policies will look like over the next five years. These also raise fundamental questions for companies: Can Europe remain open for investment? Will regulation increase? Will EU enforcement be stepped up? Clues lie in the mission letters of those commissioners expected, in particular, to oversee areas such as trade, antitrust, and the economy.

Teresa Ribera (Spain): Executive Vice-President for a Clean, Just and Competitive Transition

The Letter. President von der Leyen's letter tasks Ribera with prioritizing the alignment of competition policy with Europe's decarbonization goals. Notably, she is also asked to prevent European small- and medium-sized companies from being acquired in "killer acquisitions" by non-EU firms and to reshape the frameworks guiding the EU's review of M&A transactions involving competitors. The review of the Horizontal Merger Control Guidelines will play a key role, potentially allowing for more flexibility in M&A deals, with the aim of fostering a more competitive and sustainable European economy that aligns with broader objectives of economic resilience, efficiency, and security in a changing global environment.

The Implications. Businesses should expect a continued layering of regulatory scrutiny for M&A deals within the EU (merger control, intensified scrutiny under the new Foreign Subsidy Regulation, as well as investment screening). The European Commission will also explore policy changes that are intended to enable EU companies to gain more scale through M&A deals within Europe than what has been tolerated to date: The stated aim is to promote the development of larger EU companies competing globally.

Henna Virkkunen (Finland): Executive Vice-President for Tech Sovereignty, Security and Democracy

The Letter. President von der Leyen's letter suggests that Virkkunen will focus on boosting digital infrastructure investment and enforcing the Digital Markets Act ("DMA") and Digital Services Act ("DSA"), which regulate online platforms. She is expected to strengthen cybersecurity in the EU through the adoption of European cybersecurity certification schemes and to promote EU digital "norms and standards" internationally.

The Implications. Businesses should expect tighter digital regulation, swifter and more effective enforcement of the DMA and DSA, and for the EU's digital standards to continue to find their way into the laws and regulations of other jurisdictions.

Stéphane Séjourné (France): Executive Vice-President for Prosperity and Industrial Strategy

The Letter. President von der Leyen's letter asks that Séjourné builds an EU industrial strategy focused on simplifying regulations and reducing barriers in the EU's internal market, in view of encouraging innovation and business. Notably, he is expected to set up a European Competitiveness Fund to support innovation and revise public procurement directives.

The Implications. All companies operating in Europe could benefit from a better-functioning EU internal market, with less fragmentation and simplified rules. However, potential changes to favor European companies in public procurement for certain "strategic sectors and technologies" could pose challenges for non-EU companies.

Maroš Šefčovič (Slovakia): Commissioner for Trade and Economic Security; Inter-institutional Relations and Transparency

The Letter. President von der Leyen's letter mandates Šefčovič's to enhance EU trade competitiveness through stronger trade agreements and a reformed World Trade Organization. He will manage relations with key partners like the United States (to "enhance bilateral trade and investment") and China (to maintain the EU policy of "de-risking, not de-coupling").

The Implications. The EU will develop a new economic security doctrine. Non-EU companies can expect, among these initiatives, the addition of further trade defense instruments to the EU toolbox, reformed investment screening rules, and the introduction of an outbound investment screening tool. The EU is likely to maintain a balanced approach in its relations with China.

Valdis Dombrovskis (Latvia): Commissioner for Economy and Productivity; Implementation and Simplification

The Letter. Dombrovskis will oversee the simplification of EU regulations and a more productive EU economy. Notably, Dombrovskis will lead efforts to streamline EU legislation by eliminating overlaps and contradictions, ensuring high standards are maintained with "stress-tests."

The Implications. Businesses can expect a drive toward more consistent rules, reduced complexity, and fewer administrative burdens across the EU's internal market. More of the EU's legislation will be challenged in "stress-tests," and a new consultation approach called "Reality Checks" should afford businesses with a greater voice in communicating the hurdles they face when implementing EU rules.