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Denmark, European Union

Vestager’s profile hangs over Danish election

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She’s not running for anything in Denmark’s parliamentary elections on Thursday, but even from Brussels, Margrethe Vestager, the country’s European commissioner for the high-profile competition portfolio, looms larger than just about anyone on the Danish political scene — included prime minister Helle Thorning-Schmidt and her main challenger for the premiership.European_Uniondenmark flag

Less than a year into her tenure as the EU’s top cop on competition law, Vestager has moved forward with narrow charges (in the Commission’s parlance, a ‘Statement of Objections’) against Google for allegedly prioritizing search results from its own Google Shopping program over other results. Hardly a week later, she filed charges against the Russian state energy company, Gazprom, for anti-competitive behavior that the Commission argues resulted in higher prices in the Baltics, Poland and Bulgaria. In recent weeks, Vestager also open an investigation into whether Amazon was abusing its dominant market position to restrict innovation and competition in the e-book industry.

That’s made her, increasingly, a bête noire in the powerful Silicon Valley. Mike Honda, a Democratic member of the US House of Representatives for a California district representing Silicon Valley, denounced the charges in April, arguing that Google was instead one of the most ‘innovative and life-changing technologies in human history.’

It’s not just American and Russian companies — Vestager is also looking into allegations that Luxembourg’s aggressive tax deals with companies violated European Union state aid rules, even though most of the tax decisions came during the administration of Luxembourg’s prime minister Jean-Claude Juncker, now the president of the European Commission and who nominated Vestager for the role last autumn. She’s also investigating several European governments for providing assistance to their respective utilities industries.

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RELATED: How Helle got her groove back in Denmark’s snap election

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Not since Mario Monti took on General Electric’s Jack Welch and Microsoft’s Bill Gates has an EU antitrust enforcer taken such an aggressive tone with companies operating in the EU marketplace. It’s certainly a more direct, even transparent way of proceeding that her predecessor, Spanish commissioner Joaquín Almunia, who preferred negotiating closed-door settlements — a tactic that did not work, so far, with Google. In a throwback to the Monti days, Vestager last week threatened to block GE’s bid to acquire the French energy business Alstom without further modifications to the proposed merger — and that’s after the French government last year stepped in to demand a better deal.  Continue reading Vestager’s profile hangs over Danish election →

Germany, Russia

Gerhard Schröder: a wasted opportunity in the Ukraine crisis

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If there’s anyone the European Union could have sent to Moscow on a quiet trip to de-escalate tensions with Russia in February, it was former German chancellor Gerhard Schröder.Germany Flag IconRussia Flag Icon

Schröder served as Germany’s chancellor between 1998 and 2005, when he led two consecutive governments led by his center-left Sozialdemokratische Partei Deutschlands (SPD, Social Democratic Party).  As chancellor, Schröder cultivated strong economic ties with Russia, and in 2003, he led Europe’s opposition to he US invasion of Iraq, a cause that also found Schröder in alliance with Russia and its president Vladimir Putin, who Schröder once called a ‘flawless democrat.’

But Schröder’s comments about the growing crisis have been far from discreet, greatly angering his successor, Angela Merkel. He has criticized the European Union’s approach to Ukraine, defended Russia’s right to annex Crimea, and validated Putin’s view that the NATO military action during the 1999 Kosovo War (an action Schröder supported in his first term as chancellor):

Mr. Schroeder told a discussion forum hosted by Germany’s Die Zeit newspaper that as someone who was aware of history, Mr Putin had certain justifiable “ fears about being encircled” and that since the end of the Cold War there had been “ unhappy developments” on the fringes of what was once the Soviet Union. He also claimed that the European Union appeared not to have “the remotest idea” that the Ukraine was “culturally divided” and had made mistakes from the outset in its attempts to reach an association agreement with the country.

Mr. Schroeder accepted that Russia’s intervention was in breach of international law but compared the Kremlin’s action to his own government’s military support for the NATO bombardment of Serbia during the Kosovo crisis in 1999. “We sent our plans to Serbia and together with the rest of NATO they bombed a sovereign state without any UN security council backing,” Mr Schroeder insisted, adding that he had since become cautious in apportioning blame.

That puts his position almost entirely in line with Putin’s — and almost entirely at odds with the German government’s. Needless to say, that has also ruined whatever value Schröder may have had in soothing German and European relations with Russia.  Continue reading Gerhard Schröder: a wasted opportunity in the Ukraine crisis →