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The future European Commission

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Alfredo De Feo

On 20 November 2024, the political groups in the European Parliament concluded a political agreement which, with reasonable certainty, will allow the new European Commission to take office, as last term,  on 1 December. This vote puts an end to many months in which the European institutions’ attitudes has looked more inward than geopolitical. The election of Trump to the Presidency of the United States has given an acceleration to processes that in the past have been more complex.

For many observers, the behaviour of the leaders of the parliamentary groups appeared to be immature, dictated by concerns that are difficult to understand in the face of global urgencies and challenges, challenges that can only be faced with great unity.

The contrasts between the political groups, beyond identity and national positions, concealed a basic malaise: accepting the shift of the majority from the Europeanism we have known in decades to positions of a Europeanism, marked by a more invasive presence of the States, This new tendency is probably more in tune with the sentiments of a part of public opinion,  which translated into the result in the European elections.

Ursula von der Leyen, immediately grasped this change, proposing to involve the conservative group, or at least part of the group, in the top positions of the Commission, being aware that in the next five years it will not always be able to count on the majority of the People’s Party, Socialists, Liberals and probably Greens but that, probably, she will also need the support of the more moderate right European conservatives. In addition, the appointment of a Vice-President of the Commission issue of the Conservatives should guarantee a more stable majority in the Council, where Italy’s weight is not indifferent. In fact, in the bicameral European architecture, the Commission, for any legislative act, will have to find the support not only of the parliamentary majority but also that of the Member States. The attitude of the President of the Commission denotes lucidity and political realism.

The European Parliament has largely demonstrated in recent years its central role in the institutional balance, it will be able to continue to be central provided that it maintains the ability to compromise even in the face of a Council, whose majority of States probably have a more national vision of Europe.

On the other hand, if we look at the last twenty years, the European decision-making process has become progressively more intergovernmental, reducing the influence of the Commission. The Commission that will have to accompany Europe towards 2030 will certainly be influenced by governments, many of the Commissioners are direct expressions of national governments and it is likely that these will condition the Commission’s choices more than in the past.

However, recent years have shown that the process of European integration can also continue through the intergovernmental method, with decisions taken unanimously, as for instance the Recovery and Resilience Plan financed with the guarantee of the national budgets. Although this type of funding is unlikely to be replicated in the short term, Member States may follow the same method to progress in the European integration. The concrete proof appeared at the informal European Council on 8 November 2024, where the Heads of State and Government invited the Commission to present a horizontal strategy on the deepening of the single market, towards a union of savings and investment and to make urgent progress on the capital markets union.

 

In addition, States ask to the High Representative and the Commission to present proposals to increase the efficiency of the European defence capability, in particular by appropriately strengthening the defence technological and industrial base.

To conclude, the new Commission will have to strengthen European credibility with proposals that can garner the consensus of all the States if possible, without forgetting that the Treaties provide that some projects can be shared only by a group of States, through the enhanced cooperation as for the Euro, or the Schengen Treaty, , obviously leaving the doors open to others to participate. 

 

Pubblicato sulla Gazzetta di Parma 23/11/2024

The Single Market and the English Lesson

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Alfredo De Feo, Scientific Director of the european college of Parma foundation

For more than four years the United Kingdom has formally left the European Union, and by now everyone recognises that the balance sheet of the divorce is heavily negative. According to figures presented by the UK Budget Office, none of the promises of the referendum promoters have been fulfilled: savings in contributions to the EU, less tax plus trade and fewer migrants. The UK continues to pay its debts to Europe (32 billion), has increased immigration from non-EU countries as a result of the departure of much European labour, putting essential services such as hospitals into crisis, trade with non-EU countries has not lived up to expectations, and the reintroduction of borders has led to the recruitment of a hundred thousand additional civil servants, which has increased public expenditure.

For example, from 2009 to 2016, Europe invested over €6 billion per year in the UK, between the European budget and the European Investment Bank, compared to the €2.4 billion made available by the government in recent years (EIB and UK budget office data, reported by Corriere della sera on 1 July). All this explains why the UK, and its citizens, have become impoverished in the last four years.

The British lesson should induce the European ruling class and public opinion to reflect on the benefits that the intuitions of Delors, Mitterand and Kohl to create the Single Market for people, goods, services and capital brought to Europe. A single market that has been imperfectly realised.

The European Parliament has published a mapping of the cost of non-Europe, i.e. the benefits that a completion of the European market would bring to the economies of member states. The study concludes that a deepening of European integration could increase European GDP by more than €2.8 trillion by 2032.

Awareness of this untapped potential led the European Council to request the preparation of a report on the future of the internal market, a report whose drafting was entrusted to Enrico Letta, former Italian Prime Minister and President of the Delors Institute and Rector of one of Europe’s most prestigious business schools in Madrid.

The report, Much more than a market, defines the context in which European leaders will have to confront themselves, identifying three key factors that must guide the deepening of the EU’s internal market: 1) the commitment to an ecological and digital transition that is economically and socially sustainable; 2) the inescapable prospect of European enlargement; and 3) the need to strengthen the coordination of EU defence policies, a policy that cannot be delegated to our NATO partners.

The Report, submitted to the European Council in April 2024, reviews the areas where the internal market needs to be completed or renewed in order to unleash new potential for the single market, presenting a series of concrete proposals ultimately aimed at improving the lives of citizens and economic operators.

These proposals include the extension of the single market to innovation, research and education, and the creation of a European company law, complementary to national laws with the aim of helping businesses, especially small and medium-sized ones, operating or wishing to exploit European markets.

Some of these proposals were taken up by the next President of the Commission, Ursula von der Leynen, in her investiture speech before the European Parliament and included in the mandate given to individual commissioners. It is therefore to be hoped that the proposals contained in the report will become part of the European political agenda in the coming months. 

In conclusion, the Letta report achieves two objectives: the first is to put the importance of the single market back on the table of European leaders and in front of public opinion, also on the strength of the negative British experience; the second is to contribute to the European political agenda of the coming months.

European policy also needs ambitious goals to regain the trust of public opinion, while being aware of a complex framework: a new Commission, a European Parliament strongly influenced by nationalist tendencies, and an international context dominated by crises that are difficult to solve, such as the conflicts in Ukraine and the Middle East, the continuous migratory flows, but also climate change and the satisfaction of energy needs.

European public opinion needs to rediscover an ideal drive as Delors was able to do in the mid-1980s by launching the single market programme. Free movement in Europe is not just an economic factor but serves to revive and strengthen the sense of belonging of European citizens, as the title of the report says much more than a market, it represents an opportunity for European leaders, which we hope they will not miss.

Traduzione automatica rivista da Edward Lynch

Where does european economic integration stand?

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Marco Ziliotti, Administrative Director of the european college of Parma Foundation

For more than thirty years – more than a generation ago,  – in a prevailing area of the European continent, which has in the meantime expanded from twelve to twenty-seven states.

People (Schengen Treaty, 19 June 1990), financial capitals (EEC Directive of 1 July 1990) and goods (European Single Market, 1 January 1993) have circulated without borders. For more than twenty years, payments in twenty of these countries have been settled with a common currency, the Euro.

The economic, social, political and cultural effects of the European integration project (a unique experiment in history, because it was not imposed by a hegemonic state, but by the voluntary cooperation of all the member states) have been, and are, undeniably profound, pervasive and to a large extent irreversible. But the road ahead for Europe, if only from an economic point of view, to truly become a common home, capable of fully exploiting its extraordinary potential, is by no means finished.

As far as the movement of goods is concerned, despite the fact that the single market and the single currency have enormously strengthened the supply chains on a continental, to date the total value of intra-EU trade in goods accounts for little more than a quarter of the total value produced; on the other hand, this interchange is worth 60% among the United States of America,.

In Europe, language barriers, the heterogeneity of the legal value of educational and professional qualifications, and the lack of integration between different pension systems still represent serious obstacles to labour mobility. Although an increasing number of young people, choose to – or are forced to seek job opportunities abroad, on average only three out of every hundred Europeans live and work permanently in a Member State other than their country of birth; in the USA, one in four.

Integration with regard to trade in services is still largely unfinished: for instance, the telecommunication and energy sectors have remained, from the outset, outside the Single Market. Partly as a result of this (as strongly highlighted in Mario Draghi’s recent speech at La Hulpe), the failure of European utilities to exploit economies of scale and the poor interconnection between national networks make the bills of European businesses and households much higher than those of the United States, and not only there.

But the most striking example of potential European competitive advantages that remains unexploited due to persistent fragmentation of rules and institutions is the capital market. On the one hand, the historical capacity of private savings, of households in particular, which in Europe remains at a level more than double than that of American households (the saving rates on disposable income in the EU varies between the member states from 10 to 15 per cent; in the United States, recent historical series show it at between 3 and 5 per cent – except for the peak of ‘forced savings’ during the pandemic). Yet 250 billion euros of financial flows leave Europe every year.

The capitalisation of European stock exchanges remains a sub-multiple not only of the American ones (Nyse and Nasdaq), but also of the Asian ones (Tokyo, Shanghai, Hong Kong, Singapore). The reason is obvious: when an Italian company is listed in Milan, it is in fact accessing predominantly domestic savings (stock market capitalisation of the Piazza Affari stock exchange: 800 billion euros; stock market capitalisation – ‘market cap’ – of the Nyse on Wall Street: 25 billion dollars, of which almost one third are non-American companies).

Once again, the key word in the problem is integration: it is very true that a German saver can buy shares in Italy and vice versa, but this remains a ‘foreign investment’. The Italian and German capital markets are controlled by different supervisory authorities (Consob and BaFin; the European authority ESMA has only coordinating powers); the rules governing the operation of German and Italian companies (company law; crisis and insolvency codes) remain distinct; just as the taxation on business income produced in Italy or Germany, or any other European state, is different, with a variability across Europe – from 9% in Hungary and 12% in Ireland, to 35% in Malta – that is unparalleled among the various US states (with a minimum tax rate of 21% and a maximum of 30%).

Despite the extraordinary progress made, given its democratic rules of governance, Europe is still in limbo. In today’s competitive and geopolitical environment, returning to its original values would be disastrous for its individual member states. All that remains is to move forward, with the utmost determination and with the awareness that the “particular” disadvantages of integration are far outweighed by the advantages of general interest.    

The Future of the European Single Market: Lectio Magistralis by Enrico Letta

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Next Friday, October 25, at 11:00 AM, the Conference Room at Palazzo Soragna in Parma will host a significant event aimed at exploring the future prospects of the European Union: a lectio magistralis delivered by Enrico Letta, President of the Jacques Delors Institute. The meeting, aimed at students of the European College, will focus on the central theme “The Future of the European Single Market: Much More than a Market.”

The European Single Market, one of the fundamental pillars of European integration, allows for the free movement of goods, services, people, and capital among member states. However, in a rapidly changing global context, economic, social, and environmental challenges raise questions about the future of this instrument.

The choice of Enrico Letta as the speaker is no coincidence: his deep commitment to European integration and his political and academic experience make him a privileged observer of the dynamics influencing the Single Market. His talk promises to be an important opportunity for critical reflection and dialogue on how the Single Market can evolve to meet contemporary challenges.

At a time when global uncertainties are on the rise, the contributions of thinkers like Letta are crucial for guiding collective reflection on a project of integration that remains vital for the stability and prosperity of the continent.

All students and participants will have the opportunity to engage with a topic of extraordinary relevance, contributing to shaping an inclusive and sustainable European future.

Start of the 22nd Edition of the Diploma in Advanced European Studies (DAES)

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The Advanced European Studies master programme (DAES) was officially opened on 14 october 2024, with speeches by Cesare Azzali (President of the European College), Alfredo De Feo (Scientific Director) and Marco Ziliotti (Administrative Director).

The atmosphere was charged with enthusiasm for the start of this new academic journey. New students from diverse backgrounds have embarked on a transformative journey in the field of European Affairs.

The DAES programme is renowned for its rigorous curriculum and high-level faculty, providing students with tools and knowledge to excel in this dynamic sector.

Throughout the academic year, students will participate in a variety of courses, workshops and seminars designed to deepen their understanding of EU institutions and policies, as well as of the multiple challenges which EU is now called to face. Specific emphasis is given to practical experience : students are encouraged to carry out internships and to engage in collaborative projects with various organizations and bodies.

In addition to academic commitments, the DAES community has always offered a vibrant social environment, fostering connections that extend beyond the classroom. Networking events and conferences will further enrich the experience, allowing students to interact with leading experts and practitioners.

By welcoming this new cohort, the European College of Parma Foundation expresses its pledge to continue supporting the academic and professional growth of recent graduates. And it certainly does not mean to stop there.

European Parliament Past present and future

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This hybrid event, co-organised by the Historical Archives of the European Union with the European Parliament Former Members Association (FMA), brings together politicians, academics and practitioners to discuss the current political scenario in Brussels in the light of historical trends.

Among the speakers, our Scientific Director, Alfredo De Feo, and two of our professors, Dieter Schlenker and Francis Jacobs.

Here the programme of the event:

To follow the event online you can register at The European Parliament: Past, Present and Future • European University Institute (eui.eu)

Which majority to appoint the President of the European Council?

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José Luis Pacheco 

It may not be very important, but it is telling about the lack of knowledge of European affairs by the media sphere (and consequently public opinion). 

 Many papers, including some commonly considered as a reference have noticed that the election of the President of the European Council is made by this body deciding by qualified majority. The same applies to the nomination of the candidate for President of the Commission and with the election of the High Representative Union for Foreign Affairs and Security Policy.   So far so good. But then they add that this means the favorable vote of 55% of the member states, corresponding at least to 65% of the population of the Union. This amounts to 15 Member States (without taking into consideration the population factor). 

It is wrong!  

That is the qualified majority required when the Council or the European Council decide on the basis of a proposal from the Commission. But in this case there is no proposal from the Commission. It is member states themselves who propose names to the nominations. In such cases, when the decision is not taken on the basis of a proposal from the Commission, the qualified majority requires the favorable vote of 72% of the member states, representing at least 65% of the population of the Union. This means 20 member states (quite a difference as compared to 15). It results from art. 15(6) TUE and from article 235(1) TFEU, which calls for the application of art. 16(4) TUE and 238(2) TFEU to the decision-making procedure in the European Council. 

It is bad enough when such mistakes can be read in prestigious papers. But it is much worse when the error can be found on the site of the European Commission itself, which serves as guide for most of the press and for citizens.

The Political Agenda (Yet to Be Written) of President Von der Leyen Towards 2030

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Alfredo De Feo, Scientific Director of the european college of Parma foundation

It is probably the first time since 1979 that the European press and media have dedicated so much space to Europe. After the initial controversies following the approval of the European Council’s proposed candidate, Ursula von der Leyen, by the new European Parliament with over 55% of the vote, a delicate phase has begun. This phase must lead to the definitive approval of the Commission that will guide the European process towards 2030. 

August, in particular, will be intense and challenging for the Commission President. President von der Leyen will need to balance the program she presented to the European Parliament, the competencies of the Commissioners, the parliamentary majority, the balance within the Council, and, importantly, gender parity. Only the right mix of these elements can ensure a smooth final passage before the European Parliament, leading to the Commission’s official start. 

The President of the Council will have to contend with the ambitions and demands of the twenty-seven governments, which include 13 center-right, 10 center-left, 2 right-wing, and transitional governments in France and Belgium.  

 Before voting to approve the Commission, the European Parliament will conduct hearings for each commissioner candidate through its respective parliamentary committees. In the past, the Parliament has rejected several commissioner candidates. The first instance was in 2004 when the Parliament rejected Rocco Buttiglione’s candidacy, forcing the Italian government to nominate Franco Frattini instead. Although not stipulated by the Treaties, this procedure has been respected by governments whose candidates have failed the parliamentary exam to avoid the risk of the entire Commission being rejected. 

To avoid this risk, governments must show flexibility by proposing competent candidates for the portfolios that President von der Leyen will assign to them. This step should not be underestimated. 

The Commissioners, along with the President, will shape the Commission’s policies. Among them will be Commissioners aligned with parties that voted against President von der Leyen. The real working program of the Commission will emerge from the balance formed within the Commission itself. In reality, President von der Leyen’s political agenda to guide Europe towards 2030 is still to be written. 

The candidate president’s programmatic speech to the European Parliament had political significance, especially regarding her personal commitment, but it does not constitute a work program. Once in office, the Commission will need to prepare proposals, considering the balance within the Commission, the significant parliamentary minority, and the positions of nine governments, five of which belong to the Conservative ECR group (Italy, Finland, Czech Republic, Sweden, and Belgium) and four to the Patriotic group. These parties range from Euro-opportunists to Euro-critics, Eurosceptics, or anti-Europeans. 

Beyond the program presented to the European Parliament, the task of the likely Commission President until 2029 will be much more complex. The proposals emerging from the College of Commissioners will face a legislative procedure that can only be concluded with a compromise between the two branches of the legislative power. The Commission must foster the best compromise while considering the trends from the European vote and the positions of a third of the states, knowing that unanimity is not always necessary within the Council. 

The real challenge for President von der Leyen will be to set a European policy that is more sustainable for European citizens and businesses. Only this political agenda can reduce the dissatisfaction that has largely fueled nationalist parties.  

Published in Gazzetta di Parma on August 5, 2024 

Overcoming today’s challenges sets the stage for tomorrow’s successes

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The European College of Parma Foundation is proud to announce the official opening of registrations for the following Master’s Courses, carried out in cooperation with the University of Parma:

  • II Level Master in “Management of Local Authorities”
  • I Level Master in “Management of European Funding for the Public Administration”
  • II Level Master in “Mental Health and Psychosocial Support in Humanitarian Contexts” (delivered entirely in French)

In details, the three Courses are respectively aimed at:

  • Providing with the Managerial skills and abilities, required to take on a Management role within Local Authorities;
  • Providing with the knowledge and skills, necessary to play the role of expert in “European Funding”, within the Public Administration;
  • Enabling the acquisition of skills, related to Humanitarian Response and planning of Psychosocial Interventions, in the light of the MHPSS (Mental Health and Psychosocial Support).

You will find all the main information (deadlines, Academic Programme, duration, fees, etc.) on the Websites of the European College of Parma Foundation and of the University of Parma.

Choose our Masters’ Programmes, and build up your professional future with us!

The Members of the EP at work

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Alfredo De Feo, Scientific Director of the European College of Parma Foundation

Now that the European citizens have elected the 720 Members of Parliament, how can the newly elected Members influence the decisions of the Parliament?  

First, they will discover that the so-called multilingualism, where everyone can speak their own language, is a chimera. Indeed, theoretically, speaking one’s own language is a right certainly guaranteed in plenary sessions but not sufficient to ensure good integration into the parliamentary work. The administration provides Members with interpreter and translation services; additionally, each Member can hire assistants to help them in communicating with their peers. However, if a Member cannot express themselves in one of the “vehicular” languages, or rather “in the vehicular language”, they risk being marginalized in the parliamentary work. 

The new Member will then discover that the organization of political work in the EP revolves around two pillars, two sides of the same coin: political groups and parliamentary committees.  

The parliamentary committees are divided by thematic areas, mirroring the committees of national parliaments. Members will be assigned to parliamentary committees based on their competencies and preferences. The composition of the committees will thus be proportional to the composition of the plenary assembly. Having specific expertise in a certain area will increase the possibility of influencing decisions. 

In the committees, besides the President and Vice Presidents, a central role is played by the spokespersons of the groups, one or two per group, who have the task of finding the most unified positions within the group and then defending the results achieved in the committee within their own political group. The groups’ spokespersons also decide the group responsible for each report or opinion and choose the rapporteurs and shadow rapporteurs. Those positions are key to leave a mark on parliamentary work. 

For this reason, specific expertise in the European issues addressed by the parliamentary committee is essential to be able to aspire to hold one of the aforementioned roles and influence the decision-making process. Indeed, expertise counts; the impact of each Member will be proportional to their competence and way of interacting with their peers. 

Work in the committees is certainly fundamental, as the EP’s position on the legislation to be adopted is prepared in the committees, but it is not sufficient, as the plenary votes are determined by the positions of the political groups. 

To be influential, the Member must know how to find their points of reference within the group. Obviously, each group has its own organization, which generally includes a role for national delegations and some thematic areas, which generally cover the competencies of several parliamentary committees. Again, Members who want to assert national specificities must find the support of the political group, which will then have to negotiate compromises with other groups to achieve the required majority in the plenary. 

In conclusion, we hope that the new MEPs will rapidly adapt to the EP working method to value their expertise and to integrate well into the parliamentary committees and their respective political groups to actively participate in the democratic construction of Europe. 

Contact us for more information