Von der Leyen struggles to quell revolt over controversial envoy pick

European Commission President Ursula von der Leyen hit back Tuesday at accusations of favoritism from her top team as an internal fight ratchets up.

The Commission chief said: "All processes are clear, clean and transparent, which is why the SME representative has a strong position," when asked in Berlin about the controversial appointment of a senior business official, which has been heavily scrutinized as the selected candidate hails from von der Leyen's political party.

In a letter dated April 8, the European Commission's budget chief Johannes Hahn also tried to address concerns raised by four other commissioners regarding the appointment of a European envoy for small and medium-sized enterprises.

The Commission awarded the highly paid role to European lawmaker Markus Pieper, who belongs to the same German conservative party as von der Leyen, despite the fact that two other shortlisted candidates for the post, both women, had reportedly received higher scores on tests during the selection process.

"All three shortlisted candidates were interviewed and considered generally qualified for the post. As you are well aware, gender and geographical balance are general policy considerations, but do not replace merit as the primary criterion," Hahn said in a letter dated April 8. He defended the appointment of Pieper from von der Leyen's own German Christian Democrats saying it followed rules and "established practice."

Pieper was picked as top candidate "based on his vast experience and track record in the field of SMEs" and the selection happened "within the usual margin of discretion for such senior appointments," Hahn wrote.

But in response to the Commission's chief's attempts to get past the controversy, the four commissioners leading the internal rebellion — European Commission Vice President Josep Borrell and Commissioners Nicolas Schmit, Paolo Gentiloni and Thierry Breton — said Hahn's letter did not answer their previous concerns about transparency and impartiality.

"It is essential that the answer fully covers all the issues raised by the members of the European Parliament," the four commissioners wrote in the letter, calling again for an exchange on the topic "very soon." Commissioners meet for a weekly College meeting on Wednesday.

Commission scrambles

Eric Mamer, the European Commission's chief spokesperson, told press on Tuesday that "the President is very happy for the College to discuss this tomorrow to discuss the procedures for nominating high-level officials." 

The Commission's top level is scrambling to draw a line under the most serious internal rebellion von der Leyen has faced since she first became head of the EU's executive branch back in 2019.

With Europe-wide elections less than three months away, von der Leyen is seen as likely to win another five-year term at the head of the Commission after she was named "lead candidate" by the center-right European People's Party (EPP), the largest political grouping in the European Parliament.

But the open challenge last week by French industry commissioner Thierry Breton, Italian economy commissioner Paolo Gentiloni, Luxembourgish jobs commissioner Nicolas Schmit and top EU diplomat Josep Borrell — all of whom are political rivals to von der Leyen's center-right EU party — suggests that opposition to her second term might be stronger than expected within Europe's liberal and social democrat camps.

While the Secretary General of the Party of European Socialists told POLITICO that the challenge by the four commissioners was not a "campaign move," it was nonetheless signed by the Social Democrat camp's lead candidate, Nicolas Schmit and two other top socialists, as well as Breton, a liberal close to French President Emmanuel Macron. The French leader has yet to endorse von der Leyen for a second term in Brussels.

The European Parliament is planning to vote on a an amendment to rescind Markus Pieper' s appointment on Thursday.

99 problems

The so-called "Piepergate" affair adds to a growing list of potential problems for von der Leyen as she seeks a second term. It comes just days after POLITICO revealed that the European Public Prosecutor's Office had opened an investigation into her use of text messages to negotiate major vaccine purchase contracts during the Covid-19 pandemic.

EPPO investigators are now investigating von der Leyen over "interference in public function, destruction of SMS, corruption and conflict of interest," according to legal documents seen by POLITICO and a spokesperson from the Liège prosecutor's office. 

The probe centers on an alleged exchange of text messages between von der Leyen and Pfizer boss Albert Bourla in the run-up to the EU’s biggest vaccine deal worth an estimated €20 billion at the height of the Covid-19 pandemic, in an affair dubbed “Pfizergate.”

The New York Times, which first revealed that the exchange had taken place as the two leaders hashed out the terms of the deal, has launched a parallel lawsuit against the Commission after it refused to disclose the content of the messages following an access to documents request.

Von der Leyen also faced criticism over her handling of a trip to Israel shortly after the Oct. 7 attacks, which Borrell and other senior EU officials said had overstepped her authority as head of the EU executive because they said she had failed to consult EU capitals before going. At the time, the president's office had been forced to respond by letter to a petition signed by dozens of EU officials criticizing her decision to travel to Israel.

The Commission president has so far sought to cling to the advantages of incumbency, avoiding the fray of day to day politics. Despite winning the EPP's nomination on March 7, she only unveiled her campaign team earlier this week, and a speech meant to be mark the official launch of her campaign, which she delivered in Athens last weekend, failed to garner significant coverage.

And yet, the letter from Hahn and von der Leyen's rebuttals did not respond to core concerns surrounding the appointment, the quartet of critical commissioners wrote in their letter Monday.

"We also believe that a broader discussion is warranted on the transparency and the collegiality of the process surrounding high-level appointments in the Commission," they also added, going beyond the issue of Pieper's appointment.

Representatives for Borrell, Breton and Gentiloni did not immediately respond to a request for comment. Schmit declined to comment.

The letter from Hahn ends with: "Mr Pieper signed his employment contract on 31 March and he is expected to take up duties on 16 April 2024."