How to make the EU fit for business

By Anna McLauchlin

Date: 28/10/04

JOSE Manuel Barroso said that he would put Europe's competitiveness at the top of the agenda of his European Commission and the distribution of portfolios in the first team that he presented to the Parliament suggested that he is committed to doing that. The Commission president-in-waiting gave important economic briefs to reform-minded commissioners-designate.

As further proof of his vision of a more competitive Europe, Barroso formed two commissioner groups to focus on precisely this. The Competitiveness Council Group and the Lisbon Strategy Group would coordinate the Commission's position on the main competitiveness issues facing the EU in the coming years.

In parallel with the Dutch presidency initiative to hold an informal dinner on the eve of the Competitiveness Council to coordinate ministers' positions, Barroso charged his competitiveness commissioners group with a similar task. In his letters outlining commissioner portfolios, Barroso wrote: "The group will have two functions: to co-ordinate positions ahead of the [Competitiveness] Council and, at my request, to consider the impact of significant draft Commission proposals outside the Competitiveness Council's remit and, in particular, to ensure that the impact assessment accompanying such proposals adequately takes account of competitiveness."

Barroso appointed enterprise and industry commissioner-designate Günter Verheugen as chair of the commissioners' group and its representative at any competitiveness gatherings. This was widely seen as a move to pacify the German government, which had wanted the EU executive to have a 'super-commissioner' in charge of the economic agenda. German Chancellor Gerhard Schröder had openly stated before Barroso announced the distribution of the portfolios in his team that he would like the German commissioner to hold this brief.

The Dutch presidency, which has said its priority is to "beef up" the Competitiveness Council, has welcomed Verheugen's nomination. "Our Economy Minister Jan Brinkhorst has said he is pleased that there will be one clear spokesman for competitiveness," a presidency official said.

Employers' federation UNICE also approved the choice. "The Competitiveness Council has still not lived up to the mandate that heads of state gave to it, which is to 'monitor all policy issues related to competitiveness'. With Commissioner Verheugen, the Competitiveness Council finally has the chance to fulfil this task," a spokesman for the association said after the nomination was announced.

Those who will regularly appear at the Competitiveness Council made up the rest of the team - internal market nominee Charlie McCreevy, competition commissioner-designate Neelie Kroes and head of consumer protection Markus Kyprianou, but Barroso also added trade commissioner-designate Peter Mandelson to the list. In his portfolio letter Barroso explained his choice. "I expect you to contribute more broadly to the formulation of EU policies and notably how they impact the international competitiveness of the Union," he told Mandelson. "For this reason you will also participate in the Competitiveness Council Commissioners Group."

"Obviously we're very pleased Mandelson is on the team," a UK official told European Voice. "And it also shows that competitiveness is on Barroso's list of priorities which has got to be a good thing." In a two-pronged approach to stepping up Europe's competitiveness agenda, Barroso said that he would chair the group of commissioners in charge of keeping the Lisbon Strategy alive himself. In his letter to Verheugen, who will be the group's vice-chair, the incoming Commission president said his intention was to "personally steer work" on the Lisbon Strategy, which aims to make Europe the world's most competitive economy. Those pushing the EU economic agenda were on the team - McCreevy, Kroes, Mandelson, tax commissioner-designate Ingrida Udre and economic chief Joaquín Almunia. But Barroso has widened the net to include Lisbon's wider goals of sustainable growth and employment and invited the social affairs and employment commissioner-designate Vladimir Spidla, transport chief!

Jacques Barrot, information society nominee Viviane Reding and environment chief Stavros Dimas to join the group. Regional policy commissioner-designate Danuta Hübner, education chief Ján Figel, energy commissioner-designate Lázló Kovács and science and research chief Janez Potocnik were also on the team.

Barroso's economic checklist

Here are the first challenges facing the Barroso Commission if Europe is to transform itself into the world's best economy:

• Getting the member states to implement their Lisbon Agenda commitments;
• reaching agreement on the next EU budget to run from 2007 to 2013;
• restoring the credibility of the EU's euro rules laid out in the Stability and Growth Pact while making it more flexible;
• taking the EU's Financial Services Action Plan, which aims to create a single market in financial services - to its next stage;
• overseeing the new EU member states' path towards adopting the European single currency.

Article discusses the importance of competitiveness as an issue for the incoming Barroso Commission.