Brussels Edition: Absolute power

Ursula von der Leyen is one of the EU’s most influential Commission presidents ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

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Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up. From the top floor of the European Commission building in Brussels, Ursula von der Leyen runs a tight ship. While the relative power of the various institutions that make up the EU has ebbed and flowed since its inception in the 1950s, von der Leyen is without doubt the most powerful president of the bloc’s executive since French socialist Jacques Delors, who led the Commission between 1985 and 1995. Since she took over in 2019, von der Leyen has become the face of Europe. But some inside the Commission and across the continent are questioning if the German conservative’s top-down style of management is delivering. A highly centralized power structure and reliance on a coterie of advisers typically results in closed-door decision-making, according to multiple officials. Micro-management can trigger bottlenecks, holding up major policy decisions. Defenders say she’s imbued the role with fresh authority, strengthening the EU’s presence on the world stage. Over seven years in charge, the 67-year-old has helped navigate the Covid pandemic, conflicts in Ukraine and across the Middle East, and the return of US President Donald Trump and his trade tariffs. But there’s been scant progress on deepening the single market or boosting the competitiveness of the EU, one of the world’s largest trading blocs but one that is struggling to keep pace with the US and China. ASML CFO Roger Dassen noted last month that the Dutch chipmaker, Europe’s most valuable company, gets only 1% of its revenue from the region, calling it a “major red flag for industry.” Von der Leyen’s strategic priorities will come more sharply into focus in the coming months. A decision on the revision of the emissions trading system, the cornerstone of the EU’s climate policy criticized by industry as too onerous, is looming, along with a battle over how — and how far — to regulate artificial intelligence. Negotiations on the next long-term budget, which sets out how trillions of euros of spending is allocated, will intensify, and the Commission is also facing calls to roll over Covid-era debt. Helping to broker agreements on those issues and many others while ensuring that Europe can compete in an increasingly challenging global environment will be a key test of von der Leyen’s leadership. The Latest Hungary’s next finance minister pledged to meet all criteria for euro adoption within four years as part of a “radical” policy shift after Viktor Orban’s 16-year rule. German Chancellor Friedrich Merz will meet with his coalition partners this evening as he seeks to reverse his beleaguered government’s fortunes by getting an ambitious reform agenda back on track. Italy’s government will hold talks with labor unions and regional officials to discuss Electrolux’s plans to eliminate about 1,700 jobs at its Italian facilities. Swedish private equity group EQT has made a fourth and final bid to acquire Intertek, as the British product-testing company comes under increasing pressure from its investors to pursue a deal. Siemens is exploring a potential acquisition of Mer Mec, an Italian maker of signaling and communications equipment for trains, sources said. Seen and Heard on Bloomberg Siemens Energy is benefiting from surging AI use driving demand for power-hungry data centers, especially in the US, Chief Financial Officer Maria Ferraro told Bloomberg TV. The company sees “demand going well into the end of the decade and into the next decade,” Ferraro said. “Now it’s about converting those orders into revenue, revenue into margin, margin into cash.” Chart of the Day The impact of the energy crisis is showing up in measures of supply-chain stress that flashed red during the pandemic, adding to reasons for central banks to be on guard for a spike in inflation. Some gauges are at their highest since the 2020-23 period, when economies locked down, shortages emerged and shipping snarls persisted. While the indexes are still far from their Covid highs, they reflect disruptions to global trade from the Iran war. Coming up Press conference following meeting of EU defense ministers this evening French President Emmanuel Macron and Kenyan President William Ruto press conference in Kenya Meeting of Bucharest 9 countries in the Romanian capital tomorrow Final Thought SoftBank founder Masayoshi Son has held talks about unveiling an ambitious French AI data-center project with President Macron in the coming weeks. The Japanese entrepreneur is considering a multibillion-dollar investment in the country as part of SoftBank’s broader buildout of AI infrastructure, sources said. Son has floated the idea of investing as much as $100 billion, though he may not get close to that figure if he decides to prioritize other projects. Masayoshi Son. Photographer: Akio Kon/Bloomberg Like the Brussels Edition? Don’t keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. 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