EU Elections Unpacked: Ursula von der Leyen re-elected for second term

Germany's Ursula von der Leyen has been elected President of the European Commission for a second mandate, with 401 votes in favour, 284 against and 15 abstentions, with 7 void votes. She received 40 votes over the 361 needed for a majority, a better result than in 2019, where she was elected with only 7 votes over the threshold.

Ahead of the vote, Ursula von der Leyen published her political guidelines for the next five years. The 30-page document calls for a Union that is “faster and simpler, more focused and united, more supportive of people and companies”. In a plea to protect the EU from the rise of the far-right, she stated that “it is essential that the democratic centre in Europe holds” in a clear call to the other centrist parties to support her. 

The guidelines contain a variety of legislative and non-legislative plans for the next five years with some key priorities to be presented in the first 100 days of her mandate, and come after months of planning within the Commission’s various directorates, the publication of the Council’s own strategic agenda last month based on Enrico Letta’s recommendations on the future of the Single Market.   

Key competition and industry priorities: 

• The creation of a Clean Industrial Deal to decarbonise and reduce energy prices through the advancement of clean, competitive industries. To be delivered within 100 days of her mandate. She remains committed to “bring down energy prices by moving further away from fossil fuels, reinforcing joint procurement for fuels, and developing the governance needed for a true Energy Union”.
• An Industrial Decarbonisation Accelerator Act to support industries and companies through the transition, meaning more investment in low-carbon technologies, grid infrastructure and CCS. 
• Reforming competition policy to be more supportive of companies scaling up, including a re-assessment of EU merger rules. In particular, von der Leyen refers to “the need to better support firms whose size and financing capacity cannot be compared to large corporations” as they are “often the target of killer acquisitions from foreign companies seeking to eliminate them as a possible source of future competition.” The Commission will also introduce a new category of small midcaps.
• Reducing administrative burdens and simplifying implementation, to be overseen by a dedicated Vice-President for Implementation, Simplification and Interinstitutional Relations. 
• IPCEIs (Important Projects of Common Interest) to be expanded to new technologies in 2025 via a new European Competitiveness Fund, and also made simpler and faster. 
• Turning to geopolitics and trade, von der Leyen promises to be more assertive in protecting the EU economy from key technology leakage and security concerns, especially when dealing with “strategic competitors and systemic rivals”. Policy-wide, this includes completing the review of the FDI screening framework, a genuine coordinated approach to export controls, and addressing risks from outbound investments. 
• Recognizing the need to build diversified and resilient supply chains, the Commission will also develop a new range of Clean Trade and Investment Partnerships and deepen relationships on critical minerals and raw materials.

Key digital priorities:

• Step up implementation and enforcement of digital laws recently adopted including DSA and DMA. Notably, she explicitly states that “tech giants must assume responsibility for their enormous systemic power in our society and economy”. 
• The Commission will tackle challenges with e-commerce platforms to ensure consumers and businesses benefit from a level playing field based on effective customs, tax and safety controls and sustainability standards. 
• An AI Factories Initiative, delivered in the first 100 days of her mandate, to ensure access to new, tailored supercomputing capacity for industry. 
• Adopting an ‘ApplyAI Strategy’ to boost new industrial uses of AI in areas including public services like healthcare and proposing a ‘European AI Research Council’ similar to the CERN. 
• A European Data Union Strategy, drawing on existing data rules to ensure a simplified, clear legal framework to encourage the sharing of data whilst protecting privacy and security standards, because “too many companies in Europe struggle to get access to the data they need – while large foreign tech companies use European data to fuel their business.”
• Further strengthening the EU’s cyber defence capabilities. 
• Launching an EU-wide inquiry on the broader impacts of social media on well-being, especially looking to tackle unethical techniques used by online platforms by taking action on the addictive design of online services, such as infinite scroll, default auto play or constant push. 
• A new European Democracy Shield, similar to Viginum in France or the Swedish Psychological Defence Agency, to counter foreign information manipulation and interference online. 

Key climate, chemicals and circular economy priorities: 

• Supports a 90% reduction in greenhouse gas emissions by 2040 to be included in the EU Climate Law.
• Re-open the CO2 cars and vans regulation to allow e-fuels to continue to be used. 
• A new chemicals industry package to simplify REACH and provide clarity on PFAS. 
• A new Circular Economy Act will be tabled to create market demand for secondary materials and a single market for waste.
• A new Critical Medicines Act to reduce dependencies relating to critical medicines and ingredients, and a European Biotech Act in 2025 – the latter will be part of a broader Strategy for European Life Sciences.

Key financing and investment priorities:

• The Commission will put forward risk-absorbing measures to make it easier for commercial banks and investors to finance fast-growing companies.
• Introduce a European Savings and Investments Union to include banking and capital markets (as the successor to the Capital Markets Union as proposed by Enrico Letta). 
• The Public Procurement Directive will be revised to give better preference to European products in procurement. 
• A new European Competitiveness Fund will be used to fund investments in strategic technologies like AI and clean tech, to be included in the next EU budget (2028-2035). A long-term budget proposal will be published in 2025 which should be more focused, simpler and more impactful, admitting that new own resources will be needed.

In terms of next steps, the European Parliament will announce the official allocation of members to each parliamentary committee and interparliamentary delegation. Between 22-25 July there will be the first European Parliament Committee week, where the Committees convene for the first time and elect their Chairs and Vice Chairs. By the end of August, we expect the process of appointment by Member States of their Commissioner-designates to be concluded. These Commissioner-designates will then have to go through public hearings with European Parliament Committees (likely in September/October). By the end of the year (earliest possible date 01 November) the new College of Commissioners should take office and in early 2025 we should see the publication of the Work Programme for 2025, building on the political guidelines released on 18 July.