Von der Leyen’s new team: key dates in the formation of the next European Commission
As the European Union enters a new institutional cycle following the recent European Parliament elections, the process of forming the next European Commission is in full swing. All Member States have now officially presented their nominees for Commissioners-designate. The next stage involves the formal allocation of portfolios by President von der Leyen followed by confirmation hearings in the respective committees of the European Parliament. Von der Leyen is expected to present her designated Commission team and portfolios to the Conference of Presidents in the European Parliament on 11 September 2024. The Parliamentary hearings are expected to begin as of 23 September, the week after the first Plenary session in the new term. These hearings give MEPs the opportunity to scrutinize each Commissioners-designate’s qualifications, policy positions and suitability for their assigned portfolio. The new Commission – as a whole – will need Parliament approval in a Plenary vote to take office. If no candidate is rejected by the Parliament, the new Commission can be sworn in on 1 November. However, if candidates are rejected, the new Commission will be sworn in on 1 December.
EU Finance Ministers will meet informally on 13 and 14 September
On 13 and 14 September 2024, EU Finance Ministers will gather for an informal ECOFIN meeting in Budapest. During the Friday afternoon session, Ministers and Central Bank Governors will discuss the issue of “sustainable financing of green transition”. The Secretary-General of the OECD and the CEO of the Hungarian Government Debt Management Agency are expected to present possible solution approaches on how to bridge financing gaps with innovative instruments, how to better mobilize household and other private savings when there is a need to enhance green transition and put public debt on a downward path simultaneously. The focus of discussion on Saturday morning will lie on “the effects of demographic changes on public debt sustainability”, where delegations will analyse debt sustainability risks in the context of aging societies and possible lines of action. The discussion will be based on the contribution of the Brussels-based think tank Bruegel. During the ministerial working lunch, the Managing Director of the IMF will outline „the new financing opportunities in supporting low-income countries in their response to global challenges”. The next regular ECOFIN will take place on 8 October 2024.
Draghi reveals details about his competitiveness report
On Wednesday 4 September 2024, Mario Draghi presented his long-awaited report on the future of Europe’s competitiveness in a private session to EU officials and leaders of groups in the European Parliament. Draghi has been tasked last year by the European Commission to draft a report on how the EU should keep its greening economy competitive and stay able to challenge China and the United States in times of a sensitive geopolitical climate. During his presentation he only provided insight into the report’s “general structure”, according to EU diplomats. Draghi explained the report will be divided into five distinct sections: (i) increasing productivity, (ii) reducing dependencies, (iii) climate change, (iv) social inclusion, and (v) “sector-specific” proposals for ten “major sectors” of the EU economy. He further stressed the importance of combating climate change, cutting “red tape”, addressing Europe’s widening skills gap, and integrating the EU’s single market. However, no concrete proposals were made during his presentation. For more detailed recommendations, stakeholders would “have to wait” until the report’s official publication, which is expected for later today.
Pascal Saint-Amans publishes memo to future Tax Commissioner
Pascal Saint-Amans, former Director of the Centre for Tax Policy and Administration (CTPA) of the OECD and non-resident fellow at the think tank Bruegel, published his “Memo to the commissioner responsible for tax policy” on Wednesday 4 September 2024. The memo addresses the significant challenges and opportunities facing EU tax policy. It highlights the complexities of tax harmonization due to the diverse tax systems across EU Member States and the unanimity rule in the area of taxation. Despite some progress in areas like VAT and anti-tax avoidance measures, direct tax harmonization, especially corporate income tax, remains difficult according to the memo. Saint-Amans also emphasises the need to prepare for the potential failure of the global tax initiative Pillar 1, which aims to reallocate profits of large multinationals. Additionally, the document stresses the need for tax simplification, better taxation of digital nomads and high-net-worth individuals, and resetting the EU’s tax relationship with Africa.
