Tariffs and the EU agenda: von der Leyen under fire from the European Parliament

Brussels – Two formal letters of request for clarification, from the Socialists (S&D) and Liberals (RE), the spectre of another motion of no-confidence, on which the radical Left (The Left) and the sovereignists (PfE) are working, and the demand for activation of the trade defence mechanism against Donald Trump’s United States, put forward by the Greens. The President of the European Commission, Ursula von der Leyen, finds herself under intense scrutiny from the European Parliament, where she will deliver the traditional State of the Union Address on Wednesday, 10 September, an occasion more challenging than ever before.

The subject of the dispute is the tariff agreement reached in late July. The deal is unpopular, a fact that emerged from day one and that now places von der Leyen in a far from comfortable or enviable position. The undisputed leader of the Commission is under all kinds of pressure, on every front. She enjoys the support of “her” EPP, with the Popular Party ready to close ranks, and this is undoubtedly a political fact that works in her favour. However, there is an entire Parliament on the warpath, and this risks producing a slippery slope for the continuation of the legislature.

Von der Leyen knows that she must already proceed with caution. Indeed, she has received a clear mandate from the governments, which are primarily led, looking at the leaders in the Council, by members of the European People’s Party—11 out of 27. It is precisely this support from the heads of state and government that represents the core political-institutional challenge for the EU. “Von der Leyen is no longer a balancing point between Parliament and Council, she adapts to Council decisions,” criticises Camilla Laureti (PD/S&D). Now, however, Parliament promises to fight.

“The tariff war is illegal, unjust, and unacceptable,” thundered the socialists through their spokeswoman, Utta Tuttlies, who pointed out that a letter had been sent to von der Leyen reminding her of the agenda to follow in exchange for the group’s support. Similar is the position of the Liberals, who demand “reassurances” on the European government action from here on. Again, a letter was sent to “help” von der Leyen in delivering the expected speech. 

The Greens, on the other hand, expect to ask the European Commission to activate the anti-coercion mechanism against the United States in response to the Trump administration’s trade policies. The agreement on tariffs “is unfair and unstable,” the group’s spokeswoman, Pia Kohorst, said. Hence, it is necessary to use the trade defence instrument, which can lead to investment restrictions and even procurement restrictions.

 The pressure on von der Leyen does not end here. From the opposition benches comes the threat of new no-confidence votes. The radical left has started collecting signatures for a new censure motion, and so has the Patriots for Europe group, where Matteo Salvini’s League sits. For now, none of the leading groups in Parliament seems willing to support either motion, but the Socialists’ spokeswoman says, “There is neither a ‘yes’ nor a ‘no’, we will discuss what will be on the table.” In short, von der Leyen is on notice. 

In this chaotic picture, the only good news for von der Leyen is the support for ratifying the free trade agreement with the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay, with Bolivia pending membership). Socialists, Liberals, and Greens recognise the need and importance of expanding the network of trade relations, and the objection to the ratification of the agreement with the South American countries only comes openly from the radical left group.