France mourns its loss of influence in von der Leyen’s new Commission

BRUSSELS — Emmanuel Macron’s clout on the European stage just isn’t what it used to be.

One day after now-former French Commissioner Thierry Breton resigned in a huff, five French officials bemoaned a loss of influence for Paris in Brussels after Ursula von der Leyen pitched a new team on Tuesday.

“This says a lot about the loss of French influence that they weren’t able to impose Breton,” said a senior Commission official, referring to the French president’s deal to swap Breton for another nominee in exchange for a more powerful portfolio. The official, like others quoted in this article, was granted anonymity to speak freely.

“The real problem is that we were unable to get the guarantee that we would get a big portfolio.”

Indeed, on Tuesday French officials noted Paris’ new commissioner pick, ex-foreign minister Stéphane Séjourné, will directly control fewer resources inside the Commission than his predecessor did — and that Paris failed to win the powerful competition portfolio many in France had hoped to get from von der Leyen.

Part of this can be attributed to Macron’s own weakened position after a glaring loss in June’s European election to the far-right, with one French official voicing concern that Macron was possibly hoodwinked by von der Leyen.

While France might be able to claim a small victory with the elevated executive vice president title given to Séjourné, five years ago Macron negotiated a massive portfolio spanning tech and defense for Breton.

On paper, Séjourné will have a role that covers industrial policy to financial services with four commissioners reporting to him. In practice, his new Commission role looks less impressive than Breton’s old job.

While Breton had direct control of three Directorates-General — known as DGs — Séjourné has direct control over only one, known as DG GROW (the Commission department handling Europe’s internal market). But in exchange, the Frenchman will have wide oversight on key files like the capital markets union. Breton was in charge of DG GROW and DG CONNECT, the department for tech and telecoms.

Séjourné, said one of the five officials , is in a role that is more arch-coordinator than Commission behemoth.

The mission letter and reality

According to his mission letter, the French commissioner will get reports from four of his peers in charge of four DGs: the ones on Trade, Economic and Financial Affairs (ECFIN), Financial Stability, Financial Services and Capital Markets Union (FISMA) and  Research and Innovation (RTD).

But one French diplomat still claimed victory.

“Some will say we have lost, I say we have won,” said the French diplomat.

“Yes, we have fewer DGs than during the previous mandate, but you can’t have EVP status, lead a cluster, and have the same DGs as before. We’ve gathered the tools to boost competitiveness in one place.”

Other French officials see Macron as having buckled in the face of von der Leyen’s pressure to oust Breton, who had become her chief internal critic in the institution. In part, Macron might have felt he had to buckle.

Bruised by the results of a snap election that saw the far-right gain power in the French Parliament this past July, Macron’s standing with von der Leyen — and within his own government — was weakened. France is also in hot water with Brussels over its budget deficit, and it had to ask for more time to present its budget.

Macron’s political opponents saw an opening and wasted little time in criticizing him.

“France has become known during these past seven years under Emmanuel Macron as a country that talks a lot and does little,” said François-Xavier Bellamy, a conservative lawmaker in the European Parliament, on France’s BFMTV news channel.

“This France is fragile due to its own internal crisis, and this is why France is having a hard time getting heard in Europe and that contributes to a larger imbalance.”

Overlap and silver linings

Still, there are some silver linings.

Séjourné managed to add to France’s portfolio powers that fell in the remit of the competition commissioner, especially on subsidies. But he will have to share them with the powerful competition commissioner, Spain’s Teresa Ribera. 

According to his mission letter, the French executive vice president will decide with member countries which sectors could be eligible for a fast-track approval of state aid known as Important Projects of Common European Interest (IPCEIs) on strategic sectors. 

But it will be for Ribera to approve (or not) those subsidies.

Hopes that Séjourné’s new powers could make it easier for Paris to hand out generous subsidies to French companies also face another reality check. Given France’s strained public finances, the age of spending bonanzas to help companies could soon be over.  

Subsidies on strategic sectors won’t be the only overlap. Séjourné and Ribera will both be in charge of implementing the EU’s new foreign subsidies regulation. 

Instead of giving Paris more power, this overlap could result in more power for von der Leyen who would have the final word on clashes between commissioners.

“Von der Leyen moved with the certainty that Macron was in great difficulty,” said a person with knowledge of negotiations involving Breton’s departure.

“She saw a pigeon and took her shot.”