Ursula von der Leyen EUROPEAN COMMISSION PRESIDENT 2019-24: POLICY PRIORITIES FOR THE TECH SECTOR - Inline Policy

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Ursula von der Leyen EUROPEAN COMMISSION PRESIDENT 2019-24: POLICY PRIORITIES FOR THE TECH SECTOR - Inline Policy
CC-BY-4.0: © European Union 2019- Source: EP

                   Ursula von der Leyen
                   EUROPEAN COMMISSION PRESIDENT 2019-24:
                   POLICY PRIORITIES FOR THE TECH SECTOR

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Ursula von der Leyen EUROPEAN COMMISSION PRESIDENT 2019-24: POLICY PRIORITIES FOR THE TECH SECTOR - Inline Policy
Executive Summary
       • Ursula von der Leyen was confirmed as                              centre-right European People’s Party (EPP)
         President-Elect of the European                                    political group within the European
         Commission for the 2019-24 term by the                             Parliament and is seen as a close ally of
         European Parliament on 16 July 2019.                               German Chancellor Angela Merkel.

       • With 374 votes in favour needed to confirm                     • The publication of her ‘Political Guidelines’
         her nomination, von der Leyen was                                ahead of the European Parliament’s
         approved with 383 votes in favour, 327                           confirmatory vote outlined her key policy
         votes against, 22 abstentions and 1 vote                         initiatives as European Commission
         void.                                                            President. The high-level policy document
                                                                          indicates a key focus on environmental and
       • Her slim majority reflects broader                               social policies.
         discontent in the European Parliament over
         the European Council’s decision not to                         • Tech and digital policy feature prominently
         nominate a lead of a political group within                      in the ‘Guidelines’. Key areas covered range
         the Spitzenkandidat system, as well as                           from Artificial Intelligence (AI) and the
         concern over von der Leyen’s track record                        envisaged ‘Digital Services Act’ to digital
         in German government.                                            taxation underline the importance of tech
                                                                          issues within the next European legislative
       • The vocal opposition of political groups                         cycle.
         including the Greens/EFA, Identity and
         Democracy (ID) and GUE/NGL highlight the                       • Von der Leyen has outlined an ambitious
         broader challenge that von der Leyen will                        timeframe for some of her programme and
         have to get her legislative agenda through                       firms should expect movement on certain
         the European Parliament in the 2019-24                           issues in the first months of her tenure as
         term.                                                            European Commission President. A number
                                                                          of policy proposals, including those related
       • Von der Leyen has extensive experience in                        to AI, are expected within her first 100 days
         German domestic politics at both a state                         in office. However it is unclear to what
         and federal level, having served as Federal                      extent her legislative proposals will be
         Minister of Defence, Federal Minister of                         supported both within the European
         Labour and Social Affairs, and Federal                           Council and the European Parliament.
         Minister for Family Affairs, Senior Citizens,
         Women and Youth. As a member of the
         German CDU party, she is a member of the

2 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
Introduction
       The nomination of Ursula von der Leyen as the                    rejection of the Spitzenkandidat process and
       European Council’s candidate for the                             her performance as German Defence Minister,
       European Commission President for the 2019-                      including the operational capabilities of the
       24 term followed several weeks of intense                        German military and ongoing investigations by
       political negotiations in which European Union                   the German Parliament into contracts with
       Member States sought to reach a collective                       external consultants.
       agreement on a suitable candidate.
       Despite strong calls from the European                           The appointment of a new European
       Parliament for the European Council to                           Commission President represents a key
       nominate a Spitzenkandidat (lead candidate)                      component of the EU institutional transition
       from one of the political groups, European                       following European Elections held in May. The
       leaders instead selected a compromise                            European Commission President enjoys
       candidate from national politics without EU                      significant international visibility and provides
       institutional experience.                                        “political guidance” to the Commission.
                                                                        Through selecting the Commissioners
       As a multilingual veteran of German domestic                     nominated by national governments,
       politics, von der Leyen enjoys the backing of                    allocating portfolios and overseeing the work
       German Chancellor Angela Merkel’s Christian                      of the Commission, the President guides the
       Democratic Union (CDU) party in Germany and                      political direction of the European Union.
       the support of the European People’s Party                       Identifying their policy priorities is therefore
       (EPP) political group in the European                            crucial for firms looking to understand the
       Parliament. Her nomination nevertheless                          long-term direction of the incoming
       faced considerable opposition within the                         Commission and key areas of potential
       European Parliament due primarily to                             engagement.
       concerns over the European Council’s

       Policy priorities
       Ahead of the European Parliament’s                               The Guidelines outline high-level
       confirmatory vote, von der Leyen published a                     commitments to introduce legislative
       ‘Political Guidelines’ document outlining her                    proposals on social, environmental and
       policy priorities as President of the European                   economic policy, as well as steps to improve
       Commission. The high-level document is                           areas including inter-institutional relations and
       focused on six “headline ambitions” for                          the EU’s international role. The Guidelines
       Europe:                                                          reflect a broad-based policy programme which
            1. A European Green Deal                                    include a number of proposals and initiatives-
            2. An economy that works for people                         particularly in regard to the environment-
            3. A Europe fit for the digital age                         which were intended to appeal to centre-left
            4. Protecting our European way of life                      political groups including the Socialists and
            5. A stronger Europe in the world                           Democrats (S&D) and Greens/European Free
            6. A new push for European democracy                        Alliance (EFA) within the European Parliament
                                                                        and facilitate her election as President.

3 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
The Guidelines highlight the importance of                       proposals within the first 100 days of her
       tech policy within the 2019-24 European                          tenure as European Commission President,
       legislative term. Key policy proposals including                 indicate that digital policy may move very
       the Digital Services Act and investment in new                   quickly under the new Commission. The
       technologies will need to be elaborated in the                   complexity of the political landscape within
       coming months, providing opportunities for                       the European Parliament following the May
       firms to engage with stakeholders within the                     2019 elections nevertheless indicates that
       European institutions.                                           significant challenges will remain in ensuring
                                                                        the passage of key legislation.
       The ambitious timeframe proposed within the
       Guidelines, including the introduction of

       Tech-focused proposals
       DIGITAL SERVICES ACT
                                                                        DISINFORMATION
       Von der Leyen proposes a new ‘Digital Services
       Act’ to “upgrade our liability and safety rules”                 Von der Leyen states that the EU should
       for platforms, digital services and products. No                 develop a “joint approach and common
       information on the legislative elements or                       standards” in order to address this challenge.
       specifics of this proposal are included in the                   Von der Leyen will also propose a “European
       Guidelines.                                                      Democracy Action Plan” which will include
                                                                        legislative proposals to ensure greater
       ARTIFICIAL INTELLIGENCE                                          transparency on paid political advertising.
       (AI)
                                                                        DIGITAL TAXATION
       Legislation on a coordinated European
       approach on the human and ethical                                Von der Leyen supports the reform of current
       implications of AI will be launched within her                   EU and international corporate tax systems
       first 100 days in office.                                        which she states are unfit for the modern
                                                                        global economy and “do not capture the new
                                                                        business models in the digital world”. She
       SUPPORTING NEW                                                   commits to ensuring that digital taxation is a
       TECHNOLOGIES                                                     policy priority and will support movement on
                                                                        current proposals. In line with the European
       Von der Leyen calls for the development of                       Union’s current stance on digital taxation, she
       joint standards for 5G networks, as well as                      states that the EU will look to move on its own
       technological sovereignty in “critical                           if no international agreement is found by the
       technology areas”. She would support                             end of 2020.
       investment in new technologies including
       blockchain, “high-performance computing”,                        TAXATION
       algorithms and tools to support data sharing
       and data usage. She states that the EU should
                                                                        Von der Leyen supports measures to improve
       lead the development of new standards which
                                                                        the business taxation environment within the
       could become the “global norm”. Investments
                                                                        European Union. She supports Common
       in Artificial Intelligence will also be prioritised.

4 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
Consolidated Corporate Tax Base (CCCTB)                          by co-decision and decided by qualified
       proposals to ensure clarity on tax regulation                    majority voting (QMV) within the Council of
       across the Single Market. She supports the                       the European Union.
       adoption of taxation proposals to be adopted

       Key proposals for businesses in general
       SMALL AND MEDIUM-                                                 100 days in office, as well as further
                                                                         movement on the ‘Women on Boards’
       SIZED ENTERPRISES (SMES)
                                                                         Directive to support gender balance on
                                                                         corporate boards.
       Von der Leyen will propose a “dedicated SME
       strategy” to improve market access and
       reduce red tape. She will support a new                           STRENGTHENING EU INTER-
       public-private fund to support SME IPOs with                      INSTITUTIONAL RELATIONS
       matching investment from the EU and private
       investors.                                                        To strengthen relations between the
                                                                         European Parliament and European
       FAIR MINIMUM WAGE                                                 Commission, von der Leyen supports a right of
                                                                         legislative initiative for the Parliament. She
       An action plan to ensure full implementation                      commits to responding with a legislative act
       of the European Pillar of Social Rights will be                   when the Parliament adopts a resolution
       proposed. She will also propose legislation to                    requesting the Commission to submit
       ensure that European workers have a “fair                         legislative proposals. She outlines her
       minimum wage” according to national                               commitment to ensuring that Commissioners
       circumstances.                                                    engage frequently with the European
                                                                         Parliament during the legislative process and
                                                                         international negotiations and will support
       WORK IN THE PLATFORM                                              regular debate with the Parliament through
       ECONOMY                                                           the ‘Question Hour’ initiative. This will allow
                                                                         MEPs to engage directly with the European
       Von der Leyen will explore ways to improve                        Commission President (and other
       labour conditions for workers in the platform                     Commissioners) on key issues.
       economy, particularly through skills and
       education. She also supports the full                             BREXIT
       implementation of the EU’s Work-Life Balance
       Directive.                                                        Von der Leyen supports an “ambitious and
                                                                         strategic partnership” with the United
       EQUALITY AND DIVERSITY                                            Kingdom following Brexit. She supports a
                                                                         further extension past the 31 October 2019 if
       To ensure equality, von der Leyen commits to                      it is for “good reasons”.
       proposing new anti-discrimination legislation
       as well as a new European Gender Strategy to                      ENVIRONMENT
       ensure equal pay. This will also be reinforced
       through binding pay-transparency                                  A key element of von der Leyen’s Guidelines
       requirements to be introduced within the first                    focus on environmental policy. These outlines

5 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
new initiatives including a “European Green                       including the maritime and construction
       Deal” to be introduced within 100 days in                         sectors, and a “European Climate Pact” with
       office, a “European Climate Law” with a legal                     pledges from stakeholders. The Guidelines
       commitment to ensure EU carbon neutrality                         also underline a commitment to increase
       by 2050, an extension of the Emissions                            sustainable finance and investment in
       Trading Scheme (ETS) to cover new areas                           environmental technologies.

       Biography
       Ursula von der Leyen was born in Brussels,                        Women, Family Affairs and Health. From 2004
       Belgium on 8 October 1958. She attended the                       she was a member of the CDU’s Presidium
       European School of Brussels from 1964-71.                         (leadership committee).

       Von der Leyen studied economics at the                            Von der Leyen was appointed Federal
       Universities of Göttingen and Münster in                          Minister of Family Affairs, Senior Citizens,
       Germany, with some time spent at the                              Women and youth in 2005, and was elected
       London School of Economics in the United                          as a member of the German Bundestag in
       Kingdom. She later studied medicine and                           2009. She was appointed Federal Minister of
       graduated from the Hanover Medical School                         Labour and Social Affairs in 2009. From
       (MHH) in 1987. She was awarded a doctorate                        December 2013-July 2019, von der Leyen
       in Medicine in 1991. She worked in the MHH                        served as Federal Minister of Defense. Von
       Department of Epidemiology, Social Medicine                       der Leyen was widely tipped as a potential
       and Health Systems Research from 1998-                            successor to Angela Merkel as German
       2002.                                                             Chancellor.

       Von der Leyen joined the Christian                                She is married to Heiko von der Leyen and has
       Democratic Union (CDU) party in 1990 and                          seven children. Her father, Ernst Albrecht,
       held a number of local political positions in                     was a prominent German politician who
       Hanover before being elected to the State                         worked with the European Economic
       Assembly (Landtag) of Lower Saxony in 2003.                       Community (EEC) and European Commission
       From March 2003 to November 2005 she                              and served as state premier of Lower Saxony
       served as State Minister for Social Affairs,                      from 1976-90.

       Implications for the tech sector
       Ursula von der Leyen’s ‘Political Guidelines’                    institutions, do not represent a concrete
       highlight the importance of tech and digital                     forecast of the European Commission’s
       policy in the incoming 2019-24 Commission                        proposals. The publication of the European
       and identify key policy areas to be addressed                    Commission’s work programme later this year
       over the next legislative cycle. The ‘Guidelines’                will help identify which of von der Leyen’s
       were nevertheless intended primarily as a tool                   ideas will be translated into more tangible
       to facilitate her election as European                           policy proposals.
       Commission President which, although
       indicative of discussions within the EU

6 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
Political ‘fragmentation’ within the European                    More practically, the ‘Political Guidelines’ have
       Parliament following the 2019 elections may                      been produced before the start of her tenure
       complicate the legislative process due to the                    and will be further shaped by the
       need to balance competing demands,                               circumstances of the 2019-25 legislative term.
       expectations and commitments from political                      Geopolitical challenges, climate change, and
       groups. More complex or controversial                            global trade tensions are just some of the
       proposals outlined in the ‘Guidelines’ may face                  potential challenges that may come to define
       opposition within the European Parliament.                       the incoming Commission’s term and require
       Given this more challenging political                            more immediate policy responses. The
       landscape, it is unclear at this stage which of                  legislative priorities within the ‘Political
       von der Leyen’s proposals- if successfully                       Guidelines’ can therefore be expected to
       introduced as legislation- would become EU                       evolve considerably over this Commission in
       law. It is also possible that a number of her                    response to the changing global landscape.
       initiatives will face resistance within both the
       European Council and Council of the European
       Union.

       Key dates
       JULY-AUGUST 2019                                                  1 NOVEMBER 2019
       Ursula von der Leyen will review EU Member                        The new College of Commissioners, including
       States’ nominated Commissioners. Member                           von der Leyen, is due to assume office.
       States will need to submit their nominations
       by 26 August.                                                     AUTUMN 2019
                                                                         The European Commission will present its
       SEPTEMBER 2019                                                    policy priorities for the 2019-24 legislative
       The European Parliament will hold hearings                        cycle.
       with Commissioners-designate.

       OCTOBER 2019
       The European Parliament will vote on the new
       College of Commissioners as a whole during
       the II Plenary session in Strasbourg.

7 | Ursula von der Leyen - European Commission President 2019-24: Policy Priorities for the Tech Sector
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