Malmström impresses in her hearing, but is she on the same page as Juncker on TTIP?

Cecilia Malmström during her hearing today

The European Parliament kicked off its hearings of Commission nominees today, with most of the attention focused on Sweden's Cecilia Malmström, the current Home Affairs Commissioner who has been handed the hugely important Trade portfolio. The hearing was eagerly anticipated due to the controversy around certain aspects of the EU-Canada (CETA) and EU-US (TTIP) free trade deals; specifically around investor safeguard clauses (ISDS).

Indeed, the hearing managed to make waves in Germany (where the issue is particularly sensitive), after Malmström's written response to initial questions from MEPs suggested that she rejected the need for ISDS in TTIP. German Green MEP Sven Giegold posted the relevant section on his website:

As the President-elect Juncker has committed himself to in his Political Guidelines..."no limitation of the jurisdiction of courts in the EU Member States will be accepted in [TTIP]; this clearly means that no Investor-State Dispute Settlement mechanism will be part of that agreement."

However, this version - sent out to MEPs on Friday - was subsequently re-called, and the new version published on the Commission's website now reads:

As the President-elect Juncker has committed himself to in his Political Guidelines... he will "not accept that the jurisdiction of courts in the EU Member States is limited by special regimes for investor disputes."

In other words, a clear change from ruling out ISDS altogether to a much more qualified acceptance. This change was subject to much speculation on Twitter, and Malmström herself claimed it was "simply the wrong version".

However, at today's hearing, Dutch MEP Marietje Schaake claimed that the Microsoft Word version sent out on Friday contained 'track changes' made by none other than Martin Selmayr, Jean-Claude Juncker's chief of staff (seemingly confirming rumours in Brussels about Selmayr's "Rasputin-like qualities"). Malmström replied that she had agreed to Juncker's office inserting a quote from Juncker and tried to brush off the affair as a "misunderstanding" and an "over-interpretation", basically denying that she and Juncker were at odds over the ISDS question.

In her opening remarks and in answers to questions, Malmström strongly endorsed the principle of free trade and TTIP specifically, which rather dominated the debate, while also defending European social and environmental standards (there is always something for everyone in the European Parliament). On ISDS, she defended the principle, while clarifying that she was committed to transparency and qualifications - such as protections for national parliaments to legislate in the national interest. She claimed that there was no need to renegotiate ISDS in CETA, as without it the deal could fall apart, that the EU itself would want to include ISDS in future agreements with other parties, but added that possibly it could be excluded altogether from TTIP - so far from a coherent line overall.

Malmström put in a solid performance - with the right mixture of assertiveness and reassurance - and it is certainly good to have a pro-trade voice in that role. However, as the shenanigans over her written answers demonstrate, there are questions over whether Malmström and Juncker are on the same page on TTIP.

Who is Lord Hill? (The UK's new appointment to be the UK's EU Commissioner)

The most visited Wikipedia page from Brussels IP addresses today will be Lord Hill's - the UK's European Commissioner nominee. Lord Hill is currently the leader of the House of Lords.

We have previously argued that David Cameron should "send forth to Brussels the best he has." The reason is simple: reform is fundamental to the UK's EU membership so the UK should put forward its best candidate to secure one of the 'big jobs' in the Juncker Commission and maximise the chances of negotiating success on all levels.

In 2009 Gordon Brown made a serious mistake in coming late to the game and sending a little known Peer, Cathy Ashton (also leader of the House of Lords incidentally) and ended up with a job that nobody else wanted. Have the lessons been learnt? Well, Cameron certainly hasn't sent the guy with the highest profile, instead prioritising avoiding a by-election, but it's too early to tell whether Lord Hill will sink or swim. He could turn out great.

But who is Lord Hill?

Well he's certainly not a household name but has been in the Cabinet albeit as a Lord. Here is his biography:

• Conservative Research Department 1985-86 
• Special advisor to Rt Hon Kenneth Clarke at Department of Employment 
• DTI and Department of Health 1986-89 
• Lowe Bell Communications 1989-91 
• No 10 Policy Unit 1991-92 
• Political secretary to Prime Minister John Major 1992-94 
• Senior consultant Bell Pottinger Communications 1994-98 
• Director Quiller Consultants 1998-2010; (a part of Huntsworth Plc) 
• Under-secretary of state Department for Education 2010-13 
• Leader of the House of Lords and Chancellor of the Duchy of Lancaster 2013-2014

Beyond that it is reportedly that he unsuccessfully attempted to resign as a minister in 2012, and recently ruled himself out as a candidate for European Commissioner, saying when asked

"Non, non, non. First, I don't believe I'm going to be asked. Secondly, I like it here. I quite like it at home, in the British Isles."

That's not the first time a politician has said something similar and ended up in that very position, though. Lord Hill is definitely well connected in the PR industry and knows the Conservative party. He knows the political system and the art of political public relations. Plenty of people say he's a 'fixer' who can work the corridors in Brussels - something which Cathy Ashton wasn't able to (partly because of her job which involved long absences from Brussels). It's too early to jump to conclusions.

Is Juncker saddling up to take on the EU's red tape dragon?

In an interview with Bild am Sonntag, European Commission President-designate Jean-Claude Juncker argued that:

“It is right that there are concerns [among EU citizens] that the EU is interfering in things that are not its concern… for this reason, I’ll create a European Commissioner for cutting bureaucracy.”

This is a welcome suggestion - we floated a similar idea back in our "EU localism" report back in 2011, and the Dutch subsidiarity review also recommended a 'subsidiarity commissioner'. Of course Juncker is not be the first person to say they wish to EU cut red tape and he will most likely not be the last. However, this is an encouraging sign, and suggests that he is not totally deaf to the concerns of business and citizens.

To make the idea more than symbolic, Juncker will need to do more than create a new post. The new Commissioner will need to be able to reach across the EU Commission's many departments and force other Commissioners to move forward with scrapping redundant laws. Specific tools could include the imposition of sunset clauses into new legislation and the right to demand updated impact assessments for existing regulations (UK government impact assessments often projected benefits which failed to materialise). For all this to take place, there will need to be a cultural shift in the Commission.

If this is a genuine attempt to de-regulate, Juncker will be able to count on support from UK, Scandinavian, Central and Eastern and Dutch governments. However, Juncker himself has also talked up the need for the EU to be more involved in social policy so it remains to be seen how strong his commitment to de-regulation will actually be.

So this is a welcome idea but one that needs full support and back-up across the EU in order to fly.

The Juncker row: Will Cameron now be forced to say he's willing to recommend 'Out' in a referendum?

Could he merrily wave the EU goodbye?

There has been much said about David Cameron's supposed "threat" to leave the EU, reportedly delivered to Angela Merkel in a discussion over whether Juncker should become President of the EU Commission.

There are good reasons to doubt the specifics of the report, because the source probably had ulterior motives: to damage David Cameron's campaign to dislodge Juncker. The theory being, the prospect of a Prime Minister "making" a threat would so upset EU sensibilities nobody would dare stand with Cameron's campaign.

Having said that the story does have two elements of truth to it.

Firstly, all polling shows that EU reform is the decisive factor in determining whether Britons would vote to stay in the EU. David Cameron could easily have pointed out that Juncker's appointment - an obvious example of non-reform - would damage the chances of an 'In' vote. But is that a threat - or a fact? Possibly, if David Cameron was the only person planning to vote in his planned  referendum, but he is not. So, if it is a threat, it is a collective one from the British people.

Secondly, David Cameron has studiously avoided saying he could ever campaign for an 'out' vote - and been criticised for it in the UK. However, with Juncker's appointment, this is becoming a much more difficult position to sustain. If this continues, i.e. if the EU actively goes the wrong way, there would be a lot people in the UK saying it's not credible for him to say he would still recommend 'In'.  (Open Europe's Christopher Howarth set out some reason's earlier here.)

The outcome of the Juncker saga may be that Cameron has no choice but to say he's willing to recommend "Out". But hey, the nature of the referendum is that it won't be his choice anyway.

Martin Callanan for EU Commissioner?

Commissioner Callanan?

The most high profile UK casualty of last week’s European Elections, other than Nick Clegg obviously, was Martin Callanan, the leader of the Conservatives’ European Conservative and Reformist Group (ECR) in the European Parliament. He lost the sole Conservative seat in the North-East of England. This has caused people in Conservative circles, including the influential Conservative Home website, to float the idea that he would be the ideal candidate for the UK’s European Commissioner. Is this true and if so could it happen?

The decision of who will be the next UK Commissioner is ultimately in the gift of David Cameron who has let drop a few hints already. Firstly, we had a job description leaked in a Number 10 memo that said they were looking for a “political heavyweight who speaks another language”. But there were other considerations. Avoiding a by-election, being a ‘eurosceptic’ but not offending Nick Clegg, and above all someone who could communicate the EU reform and referendum policy to the public and Conservative party alike.Some candidates have some of these qualities. The widely tipped Andrew Lansley has cabinet experience and is a big “big beast” in the Conservative Party but does not tick all the boxes, although in Lansley’s case his Cambridgeshire seat is considered safe from UKIP in a by-election, which would be an additional plus.

Callanan is new to the shortlist and is probably not a bookies' favourite. But he is a popular figure in the Conservative party, particularly among its grass roots, and well known in Brussels where leading the ECR group has given him the knowledge of building alliances and the power-broking needed for the job. In this role he has been through EU budget battles, fisheries reform, negotiating the car CO2 package as well as ensuring the ECR group's survival. Meanwhile, and crucially in many Conservatives' eyes, he has not “gone native”. Added to that, Callanan’s background in the North-East is a perfect counterfoil to Nigel Farage’s appeal to disgruntled former Conservative voters outside London. We do not know if he wants the job but he could well be suited for the tricky role of balancing an economic portfolio, pushing a Conservative reform agenda and credibly selling this in the UK.

So does Callanan tick all the boxes? Well he is not yet a household name in the UK, but running a European Parliament group is valued more highly elsewhere in Europe than in the UK – after all, Martin Schulz, the Socialist EP group leader was a serious candidate for the top job of EU Commission President prior to the elections.

Would Nick agree? Since the election result was a disaster for Nick Clegg it might be safe to assume that his ability to block a candidate is reduced, potentially removing one more obstacle.

Will he get it? Most likely not. As the press has already been reporting (including the FT), the post will probably go to Lansley.