Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

Barroso II: What the First post-Lisbon Treaty European Commission means for Congress

After months of wrangling, Commission

President Barroso announced in November

the members of the first post-Lisbon

Commission, which will be in power until

2014. Barroso’s Commission, however,

still needs confirmation by the European

Parliament, and the vote is scheduled for

January 26, 2010. The new Commission is

due to assume office on February 1, 2010.

While the Commission’s faces will change,

its overall composition hints at a remarkable degree of

consistency.

The announcement of the new European Commission

comes on the heels of the Lisbon Treaty’s passage

by hold-outs Poland and the Czech Republic. The treaty

creates a President of the European Council (sometimes

dubbed the “European President”) and a beefed-up High

Representative for Foreign and Security Policy (a so-

called “European Foreign Minister”).

EuroWire is a joint publication of the Bertelsmann Foundation offices in Washington, DC and Brussels. It connects Capitol Hill to European

Union policy and politics and contributes to a common trans-Atlantic political culture. EuroWire is an occasional publication that highlights issues,

legislation and policymakers relevant to the Congressional legislative cycle. This publication looks at the European Union from the point of view

of Capitol Hill staffers and offers timely operational analysis.

Contact: Tyson BarkerE-mail: tyson.barker@bertelsmann- foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

Contact: Thomas FischerE-mail: thomas.fischer@bertelsmann- stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

KEY POINTS

• The new (undefined) powers allocated to Brussels by the Lisbon Treaty mean the personalities of the incoming EU leadership will be more important than ever.

• The Commission will have a strong hand in setting a European position on financial regulation, climate change and home affairs including terrorism, migration and justice.

• The assignment of portfolios reflects primarily the interests of big three member-states – the UK, France and Germany – and of European Commission President José Manuel Barroso.

ABOUT THE BERTELSMANN FOUNDATION: The Bertelsmann Foundation is a private, nonpartisan operating foundation, working to promote and strengthen trans-Atlantic cooperation. Serving as a platform for open dialogue among key stakeholders, the Foundation develops practical policy

recommendations on issues central to successful development of both sides of the ocean.

©Copyright 2009, Bertelsmann Foundation. All rights reserved.

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Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved. 2

For the US, Barroso II holds opportunities and challenges, many of which

will come to light only gradually. It will take months or perhaps years for the

ramifications of the Lisbon Treaty to become apparent. Nevertheless, the tea

leaves are starting to emerge:

Germany-in-Waiting… This powerhouse is absent from the roster of heavyweight portfolios. Many in

Brussels have speculated that the German government is forgoing a muscular

portfolio to strengthen the case that the next president of the European

Central Bank (ECB) should be a German, possibly current Bundesbank

president Axel Weber.

…Except on Energy Security Former Baden-Württemberg Premier Günther Oettinger will be the new

Commissioner for Energy. Formerly a relatively weak portfolio, the Energy

assignment will be responsible for the creation of a common European

energy market and could become a mitigating force in the bloc’s energy

relationship with Russia. Of special interest to the US: Oettinger will join the

US Departments of State and Energy in being a player on energy security in

the newly established Energy Council.

Coordinator-in-Chief In the run-up to the appointment of the President

of the European Council, speculation centered on

the candidacy of former UK Prime Minister Tony Blair.

The decision of European member-states to go with

Herman Van Rompuy, however, has led some to say

that the president will play a coordinating role rather

than a visionary one. Low-key consensus builder Van

Rompuy is expected to be more of a logistical

convener than a political agenda-setter.

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Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

Connie Hedegaard (Denmark) Climate Action Hedegaard, Denmark’s former climate and energy

minister, will become the EU’s leading negotiator

on climate change. As such, Hedegaard, named

one of TIME Magazine’s 100 most influential

people in 2009, will have the equivalent power of

the US’s Todd Stern, but will carry great political

influence in communicating the EU’s positions at

home and abroad. On climate-change negotiation,

the EU has the full weight of representing all its

27 member-states. The Dane currently has a high-

profile position in the UNFCCC as president of the Copenhagen talks.

In a recent op-ed, Hedegaard struck a conciliatory note

regarding President Obama’s graduated timetable for

reduction in emissions targets below 1990 levels. She

also emphasized longer-term targets for 2025 (18 percent

reduction) and 2030 (32 percent reduction). Hedegaard

will be responsible for discussions related to climate-

change policy and adaptation finance.

Issues for Congress: Carbon reduction and climate-

change policy as it relates to third countries.

Karel De Gucht (Belgium) TradeDe Gucht is seen as a free-market, free-

trade-oriented politician. While Belgium has

traditionally leaned more towards France and

Italy in matters of trade, De Gucht usually sided

with the UK in promoting economic openness

during his tenure in the Belgian government. Still,

his positions on Doha and agricultural subsidies

are expected to be consistent with those of his

predecessors. Additionally, this new trade

commissioner will take over as TEC co-chair. Congress,

in particular the Trans-Atlantic Legislators Dialogue

(TLD), has a role in the TEC process and should see De

Gucht as an ally in creating a more robust trans-Atlantic

marketplace that involves legislative action on both sides

of the ocean.

Issues for Congress: Doha Negotiations, Trade and

the TEC.

Catherine Ashton (UK) Foreign Affairs High Representative The choice for Europe’s first foreign minister is

the UK’s Catherine Ashton. Ashton will serve both

as a vice president of the Commission and as

high representative, a role previously occupied

by Javier Solana. The double profile of the job

includes an institutional affiliation with the

Commission and the Council.

As head of the 6,000 strong European-wide

foreign service (officially known as the External

Action Service), Ashton will represent the European Union as a whole and the

member-states vis-à-vis the United States and other outside partners.

Although no political neophyte, Ashton has not given much indication of the

direction in which she wants to take European foreign policy on key issues of

trans-Atlantic interest such as Iran and Afghanistan.

Washington’s initial reaction to Ashton’s (and Van Rompuy’s) appointment has

been less than gushing. Some have described the duo as “anti-climactic” given

their previous low profiles. The roles that they develop in

their new positions will largely determine the strength of

the EU in Washington and on the world stage.

Senior US administration officials (such as US Special

Representative Richard Holbrooke; Assistant Secretary

of State Philip Gordon and Under Secretary of State

Robert Hormats) have recognized Ashton’s new role in the

system. No stranger to Washington, DC, Ashton made

numerous visits during her time as European Trade

Commissioner, working closely with Trade Representative

Ron Kirk on and in the Trans-Atlantic Economic Council

(TEC), the body in which US cabinet level officials and

EU Commissioners discuss regulatory convergence.

Issues for Congress: Foreign and Security Policy,

Afghanistan/Pakistan, Russia, the Middle East and Iran.

In addition to the aforementioned developments, the following incoming members of the European Commission should be of interest to European observers in the US.

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Inspiring People. Shaping the Future.

WASHINGTON, DC1101 New York Avenue, NWSuite 901Washington, DC 20005 USAContact: Tyson BarkerE-mail: tyson.barker@bertelsmann-

foundation.orgTel: (+1) 202.384.1993www.bertelsmann-foundation.org

BRUSSELSRésidence PalaceRue de la Loi 1551040 Brussels, BelgiumContact: Thomas FischerE-mail: thomas.fischer@bertelsmann-

stiftung.deTel: (+32 2) 280.2830www.bertelsmann-stiftung.de/brussels

©Copyright 2010, Bertelsmann Foundation. All rights reserved.

On Economic Policy: It’s Yin and Yang

Perceived as more ATLANTICIST

Joaquín Almunia (Spain) Competition Almunia, seen as a trusted

ally of Commission President

Barroso, was given the weighty

portfolio of competition. This

portfolio will dovetail well with

Spain’s emphasis on innovation during its EU presidency

in 2010. Almunia will be a key interlocutor with the Obama

administration as both sides lay out rules for multinational

corporations, most of which are based in the US and Europe.

He will also be an important liaison as the US attempts to

cooperate on competition and anti-trust issues with Europe.

Almunia will be in charge of Europe’s anti-trust policy,

mitigating moves on mergers, acquisitions and adherence to

market rules. Importantly, Alumnia will also be responsible

for examining direct and indirect public subsidies to foreign

corporations that could distort competitiveness in the massive

European marketplace. He will also play a role in determining

when European banks pose systemic risk.

The Competition Commissioner will also be in charge of EU

policy towards Microsoft and enforcing the decision on the

proposed merger of Oracle and Sun Microsystems.

Issues for Congress: Anti-Trust and Competition, Stimulus and

its effect on commerce and mergers and acquisitions.

Perceived as more CONTINENTAL

Michel Barnier (France) Internal Market Barnier, a feisty former French

foreign minister, will have

responsibility for regulating

European financial services as

Internal Market Commissioner. As

such, Barnier will be the banking and financial regulatory czar of

the world’s largest financial center, the City of London.

French President Nicolas Sarkozy has already claimed Barnier’s

appointment as a victory for France’s approach to banking

regulation over the UK’s lighter touch. Barnier has sought to

calm London’s worry that he will erode its competitive advantage

in the global financial marketplace. And the British have been

successful in guaranteeing that European member-states will

have a say in checking the recommendations of Europe’s new

sweeping supervisory bodies on financial regulation.

Barnier’s implementation of European banking and finance rules

will have a direct effect on the US financial sector and should

be closely watched as Congress moves forward with its own new

financial-sector regulation.

Issues for Congress: Financial Regulation – hedge funds, credit

default swaps, pensions, consumer credit and banking.

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