Ursula von der Leyen wins second term for top EU job, stresses need for EU competitiveness

LONDON (ICIS)–Ursula von der Leyen on Thursday secured her re-election to a second five-year term as President of the European Commission, and identified competitiveness as the most pressing issue facing the EU.

Following a June European parliamentary election season that saw liberal and centrist political blocs hold on to majority power but cede ground to right-wing and Eurosceptic parties, von der Leyen’s position as leader of the bloc was reaffirmed on 18 July.

A total of 401 Ministers of European Parliament (MEPs) backed von der Leyen’s candidacy, equating to roughly the number of members linked to the centrist European People’s Party, left-wing Progressive Alliance of Socialists and Democrats, and  liberal group Renew Europe.

A total of 360 votes in favour of von der Leyen were necessary to secure a majority. Of the 719 total MEPs, 284 voted against her, and 22 submitted blank or invalid votes, according to European Parliament.

Chemicals sector representatives have expressed hopes that the next term of the European Parliament will feature a stronger focus on industrial competitiveness, in light of the impact of high energy prices on the long-term viability of some sectors.

““If you read the State of the Union, there are a number of statements which clearly indicate industry policy is back, that it will get, if not the deepest political priority, as there are issues like Ukraine, it will get political priority in the next commission,” Cefic director general Marco Mensink said, speaking in October 2023.

The impact of higher energy prices on operating costs and the rollout of more cash-heavy subsidy frameworks elsewhere, such as the US Inflation Reduction Act, have intensified pressure on European industry.

“Our competitiveness needs a major boost,” von der Leyen said, addressing MEPs earlier on Thursday.

“The fundamentals of the global economy are changing. Those who stand still will fall behind. Those who are not competitive will be dependent. The race is on and I want Europe to switch gear,” she added.

This push on competitiveness is likely to be focused on reducing the administrative burden on companies in the region and prioritising faster permitting, she added.

Von der Leyen also intends to launch a Clean Industrial Deal within the first 100 days of her new term, she added, to channel investment in infrastructure and industry decarbonisation, particularly for energy-intensive sectors.

Germany-based chemicals trade group VCI welcomed von der Leyen’s re-election, but warned that Europe is at a crossroads in terms of its future trajectory.

“We are at a turning point that will decide the future of Europe. Will we manoeuvre ourselves further into the side lines as a business location or back on the road to success? The new Commission must act decisively to balance sustainability and industrial competitiveness,” said VCI CEO Wolfgang Grosse Entrup.

No deviation is expected in the bloc’s 2030 and 2050 decarbonisation goals, despite growing murmurs that the EU is not on track to meet the 2030 targets with just over six years still remaining to build out infrastructure.

“So I want to be clear. We will stay the course on our new growth strategy and the goals we set for 2030 and 2050. Our focus now will be on implementation and investment to make it happen on the ground,” von der Leyen added.

Focus article by Tom Brown.

Thumbnail photo: Ursula von der Leyen, speaking in Strasbourg, France, after winning re-election as European Commission President on 18 July 2024. (Source: Ronald Wittek/EPA-EFE/Shutterstock)