Berliner Boersenzeitung - New EU commission pushes for defence and economy spending

Addressing deputies in Strasbourg, von der Leyen said her team was ready to start work immediately on the bloc's mounting challenges.

With the Ukraine war "raging" at its borders, the 27-nation bloc needed to swiftly increase defence spending, she said.

"We have no time to waste. And we must be as ambitious as the threats are serious."

From supporting Kyiv against Russia's invasion to war in the Middle East, China's economic rivalry and the imminent return of Donald Trump to the White House, the European Union has its hands full.

"Our freedom and sovereignty depend more than ever on our economic strength. Our security depends on our ability to compete, innovate and produce," von der Leyen said.

The new EU executive has been in preparation since the 27-nation bloc held European elections in June. It is set to formally start its mandate on Sunday.

Right, centrist and centre-left groups in the EU parliament last week agreed to vote in the new 27-member commission, skippered by Germany's von der Leyen, 66, for a second term.

That came after all nominees put forward by member states were -- for the first time in decades -- cleared individually, though only after political horse-trading.

- Weapons and tariffs -

The top roles in the new commission speak of the priorities for the next five years.

Estonia's ex-premier Kaja Kallas is to become the bloc's top diplomat, while Lithuania's Andrius Kubilius landed a new role overseeing the EU's push to rearm.

Both are hawkish Russia critics.

Von der Leyen said Wednesday there was "something wrong" when Moscow is spending up to nine percent of GDP on defence against the EU's 1.9 percent.

"Our defence spending must increase. We need a single market for defence. We need to strengthen the defence industrial base," she said.

She has previously said the bloc needs to invest 500 billion euros ($526 billion) over the next decade to keep up with Russia and China.

This has become more urgent since Trump was re-elected as US president, amid fears he might reduce the US commitment to European security and support for Ukraine.

Similarly, trade policy -- under Maros Sefcovic of Slovakia -- has shot up the agenda as the bloc will contend with a tariff-loving US president who could push for the EU to buy more American products or face higher duties.

Von der Leyen did not name Trump in her speech, but said Europe had to close the "innovation gap" with the United States for its economy to thrive.

Stephane Sejourne of France is to take charge of industrial strategy at a time when manufacturing is struggling amid competition from China, high energy costs and weak investment.

The former French foreign minister will have to work with Spain's Teresa Ribera, the new competition and green transition chief, to reconcile economic growth with climate ambitions.

"We urgently need more private investments," von der Leyen said, adding work was needed to "make it easier" for companies to grow in Europe.

- 'Hands-on' chief -

With weakened political leadership in France and Germany, von der Leyen might play an even larger role in shaping Europe's future in her second term, analysts say.

The former German defence minister has significantly "strengthened her power and her profile as a political actor" over the past five years, said Luigi Scazzieri of the Centre for European Reform think tank.

She has weeded out commissioners she did not see agreee with, such as France's Thierry Breton, and benefited from a political alignment that has seen countries fill her new team with fellow conservatives.

In her first term, she also pushed the boundaries of what the EU can do.

Under her leadership, the commission shepherded efforts to purchase Covid-19 vaccines, use joint borrowing to finance post-pandemic economic recovery, ship weapons to Ukraine and wean Europe off Russian gas.

The incoming commission "is facing more threats" compared to when the last team started in 2019, Ylva Johansson, the outgoing commissioner for home affairs said.

But the EU's executive is now "much more operational than five years ago", she said.

"That is also thanks to the personality of Ursula von der Leyen -- because she's very hands-on."

(S.G.Stein--BBZ)