Archives Search

November 27th, 2009

NEW EU ANTITRUST CHIEF SPANISH JOAQUIN ALMUNIA 27-11-2--9

The European Commission's president proposed a Spanish Socialist, Joaquín Almunia, to be the body's new antitrust chief, and a center-right Belgian, Karel De Gucht, to be trade commissioner, as the slate filled for the European Union's powerful exe

The European Commission's president proposed a Spanish Socialist, Joaquín Almunia, to be the body's new antitrust chief, and a center-right Belgian, Karel De Gucht, to be trade commissioner, as the slate filled for the European Union's powerful executive arm.

In a blow to the U.K., a Frenchman, Michel Barnier, was named for a post overseeing the bloc's common market and financial services. The City of London and British officials have chafed at the idea of Mr. Barnier being in charge of writing rules for banks and hedge funds, fearing that France aims to diminish the City's role as Europe's financial center. A Briton will, however, be installed as the top civil servant in the internal-markets directorate supervised by Mr. Barnier.

The British spot on the commission is filled by Baroness Catherine Ashton, who was chosen last week to be the EU's foreign minister and will also have a commission seat.

Each of the 27 nations is entitled to one commissioner. The slate must still be approved by the European Parliament, which holds hearings in January. At the earliest, the new commissioners will take office in February, but the Parliament could well delay the process or force the replacement of candidates.

The commission's most prestigious posts are those overseeing economic matters, where it has real executive power. The trade commissioner strikes trade deals and negotiates on behalf of all 27 nations at the World Trade Organization.

The competition commissioner has wide authority to penalize companies, which the job's current occupant, Neelie Kroes of the Netherlands, has used with abandon -- hitting Intel Corp. in May with a fine of ?1.06 billion ($1.59) for monopoly abuses.

Mrs. Kroes, who will move to a less-powerful post in charge of Europe's "digital agenda" to make room for Mr. Almunia, has also forced banks who received bailouts in the financial crisis to make divestments or change their operations.

As the current economic affairs commissioner, Mr. Almunia has been in the thick of the EU's response to the financial crisis, though the economic affairs post has relatively few executive powers. He steered the EU's participation in the October 2008 bailout of Hungary, which was led by the International Monetary Fund but included EU assistance.

Key Commission Posts

• Competition: Joaquín Almunia, Spain

• Trade: Karel De Gucht, Belgium

• Internal Markets: Michel Barnier, France

• Climate: Connie Hedegaard, Denmark

• Economic Affairs: Olli Rehn, Finland

• Energy: Günther Oettinger, Germany

Mr. Almunia, 61 years old, spent a decade as a Spanish government minister in the 1980s and 1990s while his Socialist party was in power. In the present crisis, Mr. Almunia hasn't pressed as hard as Mrs. Kroes for tough sanctions on bailed-out banks, preferring instead to focus on financial stability.

Mr. De Gucht, 55, is from East Flanders, Belgium's Dutch-speaking commercial heartland that includes Antwerp, one of the world's biggest ports. He rose through the ranks of the center-right Liberal party by espousing free-market and free-trade economic policies. Mr. De Gucht was Belgian foreign minister between 2004 and this July before stepping down to become the EU's commissioner for development.

His career hasn't been untainted by controversy. As foreign minister, he publicly criticized Dutch Prime Minister Jan Peter Balkenende and Congolese President Joseph Kabila, and in September, he was cleared of accusations of insider trading after his family members sold shares in Fortis bank shortly before a state bailout in October 2008.

As the EU's new trade commissioner, Mr. De Gucht's most pressing tasks will be reviewing anti-dumping import tariffs, first on Asian shoes, and representing the bloc's view on the Doha round of trade talks and protectionism at a WTO summit in Geneva next week.

In other key posts, the Finn Olli Rehn is proposed for Mr. Almunia's old job supervising economic matters such as EU nations' compliance with bloc-wide public-finance roles; Connie Hedegaard of Denmark would be in charge of climate policy as negotiations continue over a global-warming treaty; and Günther Oettinger of Germany is nominated to take over energy as the EU wrestles with Russia over gas supply.

The new commission "reflects a balance of gender and political orientation," said the commission's president, José Manuel Barroso of Portugal, who was given a second term by EU national leaders and who is in charge of allocating people to portfolios. "We have molded a college which can deliver change."

Fourteen of the 27 proposed candidates, including Mr. Barroso, are already commissioners. Commissioners serve five-year terms.

Source:The Wall Street Journal