EU’s Balance Disrupted: The Exit of Margrethe Vestager and the Looming Consequences of Another Italian or French Economics Chief.

The European Union (EU) has long held a rule that the Commission must have a balanced representation in each policy area, with a focus on having a geographically diverse composition. Over the past five years, Valdis Dombrovskis, the fiscally conservative Vice-President from Latvia, played a crucial role in balancing out Italian Paolo Gentiloni’s leadership of the economy department. However, with Dombrovskis now eyeing a role focusing on Ukraine and Italian Prime Minister Giorgia Meloni taking over the economics portfolio, this balance is being disrupted.

Meanwhile, Denmark’s digital and competition czar Margrethe Vestager represented Northern Europe and often clashed with French President Emmanuel Macron and Italian Prime Minister Giuseppe Conte over their differing views on economic policy. With Vestager stepping down to leave a gap in the Commission for a fiscally liberal leader, many are concerned about the potential impact this could have on the EU’s delicate balance of fiscal policies.

France and Italy, both with significant debt burdens, have traditionally supported looser fiscal rules and more common borrowing. However, diplomats from frugal EU countries are wary of another Italian or French leader in the economics department due to their potentially harmful spending plans to the EU. The absence of a figure like Vestager leaves a void in the Commission that must be filled to maintain harmony among member states.