Tag Archives: vestager

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 →

Denmark

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

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HTS

Not so long ago, British prime minister David Cameron suggested that his Danish counterpart, Helle Thorning-Schmidt, would make a good alternative candidate for the presidency of the European Commission.denmark flag

Thorning-Schmidt (pictured above) demurred the speculation. Ultimately, European leaders embraced former Luxembourg prime minister Jean-Claude Juncker and instead of seeking a safe job in Brussels, Thorning-Schmidt became increasingly convinced that she could lead her center-left government to reelection in a vote originally expected in September.

A Rorschach test for EU economic policy?

Thorning-Schmidt called snap elections for June 18, hoping to take advantage of a growing sense of momentum. Indeed, she may have taken a different sort of comfort from Cameron, who last month won an even stronger mandate for a second term in his own general election. After a period of GDP contraction and fiscal tightening, Thorning-Schmidt is betting that nascent economy recovery and the promise of greater welfare spending in the years ahead will be enough to replicate Cameron’s feat in Denmark.

If she succeeds, both sides on the European debate over economic policy will try to claim victory. For the European center-right, a Thorning-Schmidt victory would provide more evidence that an electorate is willing to reward a government’s hard grind to demonstrate fiscal stability. For the European center-left, it would show the way forward for social democrats struggling to salvage, reform and reinvent the welfare state in an age of austerity.

Furthermore, as the second-most populous Nordic country, Denmark (with 5.7 million people) is a weathervane of all the recent political, cultural and economic trends across northern Europe — and where the region may be headed.

How Helle turned a near-certain defeat into a dead heat

Thorning-Schmidt is the leader of the Socialdemokraterne (Social Democrats), the largest party on the Danish left, and she leads an informal ‘red’ coalition of parties that may be willing to join forces for a broad leftist government after the election. Not surprisingly, she won sympathy from voters in the wake of a radical Islamic attack on a Copenhagen cafe and synagogue in February. Moreover, she is hoping that forecasts of 1.5% or greater GDP growth will overshadow the GDP contraction and fiscal contraction that marked the first half of her government. Continue reading How Helle got her groove back in Denmark’s snap election →

European Union, Luxembourg

Juncker’s first ‘scandal’ shouldn’t merit resignation calls

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I spoke with RIA Novosti earlier today about the revelations that Luxembourg’s government has been much more intimately involved in granting tax concessions to international companies.European_UnionluxembourgThose revelations come less than a week after former Luxembourgish prime minister Jean-Claude Juncker officially took office as president of the European Commission.Marine Le Pen, the leader of the far-right, eurosceptic Front national (National Front) has already called on him to resign.
My full remarks follow below:

It’s a very embarrassing position for Juncker, because he only took office as the president of the European Commission a few days ago, and he’ll take some perhaps well-deserved political heat for the matter, and it probably reduces his credibility on tax reform matters.

Everyone has, in the back of their minds, the example of the Santer Commission, which resigned en masse in 1999 over corruption. For now, the revelations do not appear to implicate Juncker in anything more than the kind of aggressive steps that state leaders sometimes take to attract foreign development and investment. If, for example, Juncker was found to have taken personal kickbacks in exchange for favorable treatment, it would be a much more serious allegation for himself, for the Commission, and for confidence in Luxembourg’s institutions. But there’s no evidence of that.

Meanwhile, the Commission is a professional regulatory body, and any investigations into Amazon or other companies that received state aid in potential violation of European law will be conducted by Denmark’s Margrethe Vestager, the EU commissioner for competition, who is a former minister of economic affairs and deputy prime minister. It’s helpful, from an ideological perspective, that Vestager comes from the Danish Social Liberal Party, which should give some comfort to the European Parliament’s leftists. Ultimately, this is less a ‘scandal’ than a valid policy issue, insofar as Luxembourg and other countries have long pushed the envelope in making their jurisdictions extremely favorable to international companies. Note the Irish government’s decision last month to revise the ‘double Irish’ structure so common in the taxation of intellectual property assets. So as the Commission and other EU (and even international) institutions look into these decisions, it will help clarify the line between permissible and impermissible in the future.

Marine Le Pen is hardly the best critic on the matter, because her party has long been in favor of lowering taxes and promoting the kind of economic nationalist steps that Luxembourg’s officials may have taken with many international companies. Her call for Juncker’s resignation isn’t credible, but it’s very important for her to maximize support among the eurosceptic French right if she’s going to have any credible shot at winning the French presidency in 2017, a task made much more difficult by the return of former president Nicolas Sarkozy.

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The 13 key EU players in the proposed Juncker Commission

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On Wednesday, the incoming president of the European Commission, Jean-Claude Juncker (pictured above), released full details on the proposed commissioners within his Commission, which will serve as the chief executive and administrative body of the European Union between 2014 and 2019.European_Union

The most important feature of the proposed Juncker Commission is that he’s introduced the greatest amount of hierarchy in an institution that used to be flat. It’s not a secret that some portfolios have always been more desirable than others, especially as the Commission has expanded to include all 28 member-states. But Juncker has introduced a first vice president and five vice presidents, who will also serve alongside Italy’s foreign minister Federica Mogherini, who was appointed two weeks ago to serve as Commission vice president and high representative for foreign affairs and security policy.

The delegation of so much power to five ‘super-commissioners’ with roving, supervisory briefs indicates that Juncker intends to be a much less hands-on Commission president that his predecessor, José Manuel Barroso. But it also reflects a Commission that, including Luxembourg’s Juncker, contains five former prime ministers (Finland, Slovenia, Latvia and Estonia).  It also contains four incumbents (Germany, Sweden, Bulgaria and Austria) who have served throughout the full second term of the Barroso Commission. That makes the Juncker Commission possibly the most distinguished in EU history.

Each commissioner must be approved by the European parliament and, while individual nominees have had troubles in the past, the parliament typically approves the vast majority of a Commission president’s appointments, all of whom were nominated by their respective national governments.

With nine women, it’s not as unbalanced as feared even a week or two ago, and with 14 members of the center-right European People’s Party (EPP), eight members of the center-left Party of European Socialists (PES) and five members of the Alliance of Liberals and Democrats for Europe (ALDE), it generally reflects the results of the May 25 European parliamentary elections, though some social democrats and socialists are grumbling that the left doesn’t have enough representation.

So what can we expect from this illustrious college of commissioners?

Here’s a look at the 13 most important players in the proposed Commission (aside from Juncker and Mogherini, of course). Continue reading The 13 key EU players in the proposed Juncker Commission →

Denmark

How Goldman Sachs nearly collapsed Denmark’s government last week

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A crisis over whether to approve the sale of part of Denmark’s state energy company to Goldman Sachs divides the country’s beleaguered minority government, leaving the first female Danish prime minister and her administration in jeopardy. denmark flag

It sounds like an episode of Borgen, the acclaimed television show about Danish political intrigue and the human costs of public office.*

But it was real-life Danish politics last week, when Helle Thorning-Schmidt pushed through a controversial sale of stock amounting to 18% of DONG (Danish Oil and Natural Gas) Energy, the national energy company, to Goldman Sachs, even though nearly seven out of 10 Danish voters oppose the sale and worry that Goldman will hold too much power over management and other key decisions.

Thorning-Schmidt (pictured above) leads the Socialdemokraterne (Social Democrats), the largest center-left party in Denmark.  In the September 2011 parliamentary elections, the Social Democrats actually lost a seat.  The largest party today in the Danish parliament is Venstre (Liberals, literally the ‘Left’), Denmark’s primary center-right party.

Folketing

But the strength of other leftist parties in the 179-member Folketing, the Danish parliament, allowed Thorning-Schmidt to pull together a minority government with the coalition support of two additional parties.  The first is Det Radikale Venstre (Danish Social Liberal Party, literally the ‘Radical Left’), a centrist liberal party that gained eight seats in the 2011 election.  Its leader, Margrethe Vestager, currently serves as deputy prime minister and minister for economic and interior affairs.

The second is the Socialistisk Folkeparti (the Socialist People’s Party), a democratic socialist party that lost seven seats in 2011.  Accustomed to opposition, the party joined government only for the first time since 1959, and its leader Villy Søvndal became foreign minister.  But Søvndal stepped down in September 2012, due to criticism within the party about the 2011 losses and sniping that he was focusing more on government than on the party leadership.  and in the ensuing leadership contest in October 2012, Annette Vilhelmsen defeated Astrid Krag.  Though many party leaders supported Krag, Vilhelmsen’s victory represented a triumph for the party’s left wing, though the party never fully united behind Vilhelmsen’s leadership.  Vilhelmsen clashed often with her coalition partners over economic policy, and it was Vilhelmsen’s decision to pull the party out of Thorning-Schmidt’s coalition at the end of last week, declaring that it wouldn’t be a part of government ‘at all costs.’   Continue reading How Goldman Sachs nearly collapsed Denmark’s government last week →