Following Ursula von der Leyen’s nomination by the European Council on 28 June 2024 for a second term as President of the European Commission, she had to stand for election in the European Parliament. Prior to  the vote, she gave a speech, presenting her Political Guidelines for the next EU Commission 2024 - 2029. In order to win the required absolute majority of at least 361 of the 720 MEPs, she made concessions to the political groups to the left of centre. In the end, a majority of the S&D Group, the Greens and Renew voted in favour of her re-election alongside the EPP.

Challenges in the coming EU legislative period
In her speech in the EU Parliament, Ursula von der Leyen began by addressing the challenges that need to be overcome in the coming EU legislative period. She addressed the great uncertainty felt by many people due to the rising cost of living and housing, war, the climate crisis and the division of society. Europe cannot stop change, but it can choose to embrace it by investing in a new age of prosperity and improving our quality of life, she stated.

Competitiveness as top priority
The first of seven priorities in the Political Guidelines is Europe's competitiveness. Here, a strong focus is placed on the business perspective and on reducing (so called) administrative burdens. This might lead to increased pressure on social, labour and environmental standards. Any actions in this field will have to be closely monitored. For example, in the planned “dialogues on implementation with stakeholders”, care will have to be taken to ensure that the employees' side is also involved and that labour standards do not fall victim to the “competitiveness check”.

A new Industrial Clean Deal has been announced for the first 100 days, which aims to make European industry competitive with global competitors through investment. At the same time, it is intended to pave the way to reach the new 2040 climate target (90% reduction in emissions compared to 1990). The commitment to high-quality jobs, a “just transition for all” and cooperation with the social partners is positive. To overcome the shortage of labour and skilled workers, the prospect of a European strategy for vocational education and training, among other, is held out.

In the interests of competitiveness, productivity in the EU is to be increased. In this context, the need to spread digital technologies is emphasised and an increase in investment, particularly in pioneering technologies such as high-performance computers, is announced. The aim is to become the global leader in the field of AI innovations. The announced initiative to investigate the impact of digitalisation (e.g. AI management and teleworking) on the world of work and mental health is to be welcomed.

Private and public funds to cover huge investment requirements
The announcement that the next EU Commission will be an “Investment Commission” is very interesting. Among other, the money from the NGEU recovery fund (which expires in 2026) is to be used. In addition, a proposal for a new, increased budget in the next Multiannual Financial Framework has been announced, for which new own resources are called for. It will be interesting to see how this is implemented, with particular attention to be paid to distributional fairness.

In addition, public investment is to be maximised in cooperation with the European Investment Bank (EIB). The Savings and Investments Union proposed in the Letta report is also addressed. Here, increased caution is required to ensure that the risks associated with investments are not ultimately borne by low and middle income earners. Maintaining financial market stability and a solid range of public services must go hand in hand. The next EU Commission must accept to be judged not least on the basis of which areas are prioritised regarding the many investments announced. Furthermore, it remains to be seen what impact the revised economic governance and, in particular, the new fiscal rules will have.

Social promises
The Political Guidelines announce a new Action Plan to implement the European Pillar of Social Rights. Furthermore, a roadmap for quality jobs is promised, which should contribute to fair wages and good working conditions, in particular through the expansion of collective bargaining. The announcement of a plan for affordable housing and the appointment of a Commissioner who will be responsible for housing (among other) is attracting great attention, in particular. The appointment of a Commissioner for equality policy and a new strategy for gender equality are also announced, as well as a strategy to combat poverty.

Conclusion
In addition to the two priorities of competitiveness and social affairs mentioned above, other priorities include security and defence, maintaining the quality of life, protecting democracy, Europe’s place in the world and preparing the future of the EU. The social and environmental aspects in the Political Guidelines will be experiencing tensions due to announcements such as the planned “simplification of legislation” and reducing “administrative burdens”. Esther Lynch, General Secretary of the European Trade Union Confederation (ETUC), comments: “There is a risk that the positive social measures could be undermined by a focus (...) on deregulation that would supercharge economic instability (...).”. AK also warns against a one-sided deregulation agenda. In AK’s view, a sustainable and stable EU economy can only be achieved if the interests of workers and consumers are placed at the centre of EU policy as a whole.

Further information
EU Commission: Political guidelines for the next European Commission 2024 – 2029
ETUC: Social promises must be turned into directives