Commissioners supervising the portfolio, or parts of these:
- Stéphane SéjournéExecutive vice-president of prosperity and industrial strategy
- Maroš ŠefčovičCommissioner for Trade and Economic Safety; Interinstitutional relations and transparency
- Dombrovskis valdisCommissioner for economics and productivity; Implementation and simplification
In her second mandate, the president of the European Commission, Ursula von der Leyen, has created a set of portfolios which strongly reflect the accent on productivity, innovation and competitiveness. This is based on recent reports by Mario Draghi on the Future of European competitiveness and Enrico Letta on the Future of the single market. Consequently, several portfolios have interdependent responsibilities to resolve key market problems, unfair market practices and economic security.
While the European Union reacts to the challenge of global governance based on principles such as open markets, international rules based on rules, multilateralism, democratic regimes, collective security and law, portfolios Reflect a decided distance from a more neoliberal doctrine to more interventionism in the economy, including more offensive and defensive instruments to approach what is perceived as increased risks of economic security. THE Political guidelines for the next commission (2024-2029) Define ambitions of economic sustainability and competitiveness against systemic shocks that have led to rethink trade policies and their relations with other spheres of economic policy.
The priorities of the new European Commission in this area include:
- Industrial strategy for promoting innovation, competitiveness and research, and to strengthen the technological and industrial basis.
- Diversification of supply chains, reduction of dependencies and approach vulnerabilities.
- Increase trade and economic security to guarantee the implementation of the European economic security strategy to protect yourself against unfair market practices.
- Strengthen the single market to reduce obstacles to trade, approach market fragmentation and simplify rules.
The portfolios allocated to specific commissioners will need to deal with different agencies and committees within American federal branches. Although each successive commission leads to the emergence of new portfolios as well as on the pursuit of those traditional, the emphasis is much more important on economic intervention in current appointments. Consequently, Stéphane stayed will hold the portfolio of prosperity and industrial strategy, Maroš Šefčovič, will hold the set of fairly diverse questions covering trade and economic security; Interinstitutional relations and transparency, and Valdis Dombrovskis will be responsible for the economy and productivity; Implementation and simplification. Although the last two have held positions in the previous commission and therefore know Washington, they will work with a new administration as well as newly reconfigured wallets. Although the newly entitled commercial and economic security portfolio may seem the most salient for the transatlantic relationship, the problems of digital governance and industrial strategy, for example, will also be relevant to American decision -makers.
Some of the questions of the agenda continue from the previous commission, including Carbon border adjustment mechanism,, Capital market unionand obtain trade agreements “through the finish line”, including delays Mercosur Agreement as well as conclusion of people with Mexico and Australia. Many priorities of the incoming commission reflect a stronger concentration on economic security and industrial strategies to reduce strategic dependencies, diversify supply chains and strengthen innovation and investment. In particular, the Economic security strategy Adopted in 2023 is still relevant because it focuses on screening in incoming and outgoing investments, double -use technologies and export controls.
Commissioner Maroš Šefčovič will have a key portfolio where trade is “marked by striking competition on new disturbing technologies” views Trade as a “geostrategic tool”. He will be responsible for resolving disputes with the United States on steel and aluminum and to push modifications to specific elements of the law on inflation reduction (IRA) so that European companies can be eligible to tax credits. Šefčovič considers China as the most difficult trading partner given the effects of dislocation of Chinese competition. The cleaner commercial regime. He also responded to concerns about companies avoiding EU business sanctions against Russia, in particular on the part of China, which provides substantial double -use technologies. In hearings, Šefčovič has sent a strong message of cooperation with the United States where interests align with economic security issues related to China.
The European Commission will continue to promote market access through different types of trade agreements. Although an agreement with the Mercosur countries, Brazil, Argentina, Uruguay and Paraguay have been completed, it faces ratification difficulties. Šefčovič has undertaken to continue working on the free trade agreements (ALE) with Mexico and Australia and wishes the EU to be more active in Thailand, the Philippines and India, although the latter often has was a difficult trading partner. Bilateral negotiations on an ALE as well as the India-UE Trade and Technology Council (TTC)Report a continuous emphasis on EU’s strategic partnerships.
During his confirmation hearing, the stayed commissioner underlined the need to support the automotive, aeronautical and steel sectors to meet the requirements of the Clean industrial agreement As part of a simultaneous process of decarbonization and reindustrialisation. The commissioner undertook to create a EU competitiveness fund To promote public and private investment in key sectors. Stay is interested in examining the rules on unfair commercial practices.
Removing the theme of European competitiveness and stimulating the European economy, Commissioner Dombrovski wants to reduce the regulatory burden on business and promote the rules that are easier to implement to simplify the costs of conformity. Dombrovski indicated two other problems that will be on its program: customs and taxes. He is concerned about the deployment of global digital tax rules, the Commission pushing for global implementation in order to prevent a return to different national taxes or statements of digital services. It also pushes to finalize the reform of the EU customs code to approach the growth of electronic commerce and the increase in products and product sanctions. The priorities of these portfolios will be to use all the tools available to strengthen commercial and economic policies.
Cooperation and transatlantic commitment
The environment of transatlantic cooperation will be affected by the extent to which the prices are intended for European Member States and the EU. The reaction to these prices and the response can push Europe to move exports to other markets. However, many of the exports struck by prices will be intra-company transfers ranging from Europe to manufacturers based in the United States who employ workers in many American states. However, there are certain areas which will be beneficial for European and American companies, because Dombrovskis will be responsible for the relaxation of the administrative burden for companies operating on the single market by reducing administrative formalities, modernizing customs procedures and prioritizing simplification regulatory through a dedicated portfolio.
Šefčovič would like to reorganize the EU trade and technology agreement By expanding some of the questions under discussion that involved a range of subjects that have gone through various commission portfolios. Transatlantic cooperation could be achievable if it implies cooperation on critical minerals, continuing market access, the fight against Chinese disloyal business practices, detection of outgoing investments, promoting international standards, reduction of charges business regulations and the fight against vulnerabilities of the supply chain. THE European Economic Safety Strategy Parallel to the actions in the United States with a more emphasis on safeguarding measures under the guise of “national security” concerns. This could facilitate transatlantic dialogue such as the development of new disturbing technologies, the armament of economic dependencies and the increase in international competition standards have generated increasing geopolitical competition.
The EU wishes to conclude an agreement on critical minerals so that it can be eligible for tax credits under IRA. Since the announcement of March 2023, the United States and the EU have been negotiating a Critical mineral agreement (CMA). There are differences in the way the United States and the EU encourage green technologies. THE Of the Green UE agreement Use non-tax incentives, such as carbon pricing, binding targets, performance standards and sectoral regulations while the United States uses tax credits. The implementation of the EU Carbon border adjustment mechanism (CBAM) is worrying in the United States given the implications of taxes on goods imported according to their carbon emissions allocated. Although the two parties are suitable for the objectives of reducing the intensity of the carbon of steel and aluminum and the fight against excess capacity in the steel industry, they are still distant in the way of achieve these goals. The European Union and the United States have agreed that Washington will continue to suspend prices on steel and EU aluminum until March 2025 while efforts continue to reach the agreement on a Global arrangement on sustainable steel and aluminum (GSA).
There are also certain potential concerns to move forward. Suffering for pricing hikes, even if it is not in the initial tour of targeted countries, the European Union will face challenges in the efforts of the new administration to decade from China and the pressure to reduce their Commercial imbalances with the United States, even if there is a significant overlap between overlapping between the United States and overlapping between the United States. The United States and the EU on the fight against unfair commercial practices and the excess capacity of China as a stay indicated that this would create the potential for deeper transatlantic cooperation.
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