Von der Leyen’s plan for the EU is stalling due to criticism of her management style

This is reported by Bloomberg, citing officials and diplomats who have worked with Ursula von der Leyen and her team.

During her years in office, European Commission President Ursula von der Leyen has built a tightly centralised management system in Brussels.

According to Bloomberg, her inner circle of advisers controls the day-to-day running of the EU’s executive body, whilst von der Leyen herself effectively micromanages the European Commission’s vast bureaucratic structure.

The publication’s sources believe that this management style overburdens her office and distracts from the EU’s core economic priorities.

This refers, in particular, to strengthening the EU single market and boosting the bloc’s competitiveness in the face of increasingly fierce global competition.

Von der Leyen has been at the helm of the European Commission for over seven years. During this time, she has steered the EU through the Covid pandemic, wars in Ukraine and the Middle East, as well as Donald Trump’s return to the White House and his trade tariffs.

At the same time, according to Bloomberg, progress in strengthening the EU’s economy remains limited.

Criticism within the EU

Tensions that have been building up for years have begun to surface openly.

Last month, von der Leyen’s former colleagues in the conservative CDU group demanded greater control over the European Commission’s powers at a closed-door meeting in Berlin.

Separately, a delegation of executives from major tech companies told her that the EU is not moving fast enough on issues important to business.

There is also discontent within the Berlaymont building, where the European Commission is based. According to Bloomberg, some European Commissioners feel sidelined from key decision-making, whilst von der Leyen and her team take the lead.

A European Commission spokesperson responded by stating that decisions are taken collectively, with the involvement of the European Commissioners, and that the number of hours spent in discussions allegedly speaks for itself regarding the inclusivity of the process.

Why decisions are being delayed

Bloomberg’s sources attribute the European Commission’s problems specifically to excessive centralisation of power.

According to them, the reluctance to delegate creates “bottlenecks” that delay important policy decisions.

One example is the strategy for completing the EU’s internal market.

A draft document prepared by the team of European Commission Vice-President Stéphane Séjourné was ready as early as November.

However, the document lay dormant for several months. At the summit in February, EU leaders called on the European Commission to present the plan in March, but the European Parliament and member states only saw it a few days before its publication at the end of April.

The European Commission explained that work on the document had “evolved” to cover competitiveness issues more broadly, and described it as an unprecedented roadmap.

Business sees the competitiveness problem

Amid internal disputes, European companies are increasingly talking about the EU lagging behind the US and China.

Europe, in particular, is lagging behind in harnessing the potential of artificial intelligence and developing the microchip sector.

ASML Holding NV’s Chief Financial Officer, Roger Dassen, told shareholders last month that Europe accounts for just 1% of the company’s revenue, even though ASML is the region’s most valuable company.

He called this a “serious red flag” for European industry.

A budget of nearly €2 trillion and resistance from Berlin

Bloomberg cites work on the EU’s long-term budget as another example of consultation problems.

The draft plan, which involved nearly €2 trillion, was received by European Commissioners at the last minute.

EU countries were also dissatisfied with the lack of consultation, even though it concerned a record spending plan.

Within hours of the announcement, Berlin publicly rejected the proposal.

German Chancellor Friedrich Merz was particularly unhappy with the idea of corporate taxes, having promised German businesses a reduction in the tax burden shortly before.

The criticism from Germany is particularly telling, as von der Leyen, Merz and Jens Spahn, who heads the conservative parliamentary group, are formally party colleagues.

What people are saying about von der Leyen’s leadership

Mujtaba Rahman, managing director of the Eurasia Group in Europe and a former British and European official, told Bloomberg that von der Leyen could be the most influential European Commission president in history.

At the same time, he said, the mistakes of a small group of her trusted but overburdened officials are becoming increasingly apparent, as is tougher resistance from EU capitals.

Bloomberg notes that under von der Leyen, the role of the European Commission has grown to a level not seen since the days of Jacques Delors, who led the Commission from 1985 to 1995 and gave impetus to the development of the single European market.

Von der Leyen has effectively become the face of Europe on the international stage. Last year, following a trade deal between the US and Europe, Donald Trump even joked at the White House that she might be more influential than the leaders of Germany, France and Italy sitting at the table.

What next

Von der Leyen’s supporters say she has given the post of European Commission President new weight and strengthened the EU’s role in the world.

At the same time, critics believe she intervenes too often in new crises, even when they do not fall directly within her remit, rather than focusing on her main mission – the economic strengthening of Europe.

Italian Prime Minister Giorgia Meloni said in an interview with Bloomberg earlier that Europe could overcome its sluggishness more easily if it dealt with fewer issues but did so better.

Against this backdrop, the EU risks falling even further behind in global competition.

Former Italian Prime Minister Mario Draghi, who in 2024 produced a high-profile report on the EU’s competitiveness, also criticised the pace of change at the end of last year.

According to him, the European growth model is fading, vulnerabilities are mounting, and there is no clear path for financing the necessary investments.

As reported by ThePublic, the first tranche of financial aid from the European Union could reach Ukraine as early as this quarter. This refers to funds under the approved €90 billion loan programme.

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