Ursula von der Leyen
Increased scrutiny causes controversy within the EU
As Bloomberg notes in its article, a virtually “presidential model” of governance has formed around the head of the European Commission, with key decisions concentrated in the hands of a small group of close advisers. One of the agency’s interlocutors described the situation as a “very centralized system”, where many decisions pass through the office of the European Commission president.
According to Bloomberg, this model has allowed von der Leyen to consolidate political control over the EU institution, especially during the energy crisis, the conflict over Ukraine and trade disagreements with China and the United States.
However, there are now growing questions within European institutions about whether this system is beginning to slow down the decision-making process itself.
“Everything has to go through a very narrow circle of people,” Bloomberg quotes one source familiar with the inner workings of the European Commission as saying.
Why the issue is important for the EU economy
The debate around the European Commission’s management methods goes far beyond the internal politics of Brussels. In the coming years, the EU will have to make strategic decisions on industrial subsidies, energy market reform, defense industry support and competition with the U.S. and China in high-tech.
Against this background, the issue of the effectiveness of European institutions becomes directly linked to the economic sustainability of the EU. European businesses are already facing high energy prices, increased competition from U.S. subsidy programs, and the need for accelerated investment in digitalization and defense.
Bloomberg notes that some European diplomats and officials fear further concentration of powers in the office of the head of the European Commission, as it could weaken the role of the relevant commissioners and complicate the harmonization of decisions between the EU member states.
At the same time, von der Leyen herself remains one of the most influential figures in European politics. During the energy crisis and after the outbreak of the war in Ukraine, it was the European Commission that was given a much more active role in coordinating the EU’s sanctions, energy and industrial policies.
“She has become the most powerful European Commission president in decades,” Bloomberg quoted a European official as saying.
For businesses and investors, the situation is important primarily because the speed and quality of Brussels’ decisions will determine the rules for subsidy distribution, technology regulation, energy reforms and the competitiveness of European industry on the global market.
