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6/27/14

EU's new President Jean-Claude Juncker - Profile

Jean-Claude Juncker
Among EU government leaders only the UK and Hungarian prime ministers voted against him at an EU summit on 27 June.

Crucially Germany's Chancellor Angela Merkel backed his bid - after some hesitation - as did the centre-left leaders of France and Italy.

There are many voices in the European Parliament too who argue that Mr Juncker should get the job. The parliament believes the choice of European Commission president now has to reflect the election result.

Yet he is a controversial figure in the EU, as a leading advocate of deeper EU integration, and is often called a "federalist"
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A veteran of Brussels deal-making, he headed the powerful Eurogroup - the eurozone finance ministers - at the height of the eurozone crisis, when crucial decisions were taken about austerity and bailout conditions.

He was prime minister of Luxembourg from 1995 to 2013 and one of the architects of the euro.

But according to Pierre Leyers, financial editor of the daily Luxemburger Wort, it is misleading to call him a "federalist". "He wants deeper integration, but not a European superstate," he told the BBC.

Mr Leyers argues that coming from a tiny country has enhanced Mr Juncker's influence in the EU, odd though that may seem to people unfamiliar with Brussels politics.

Luxembourg was a founding member of the community which became the EU and, sandwiched between France and Germany, "it had no choice but to try to be on good terms with its neighbours", Mr Leyers said.

 "So some Luxembourg politicians were always good negotiators and diplomats, to get France and Germany together."

The drive for post-war reconciliation shaped Mr Juncker's political views.

But some of his past remarks have raised eyebrows, suggesting a less than firm commitment to democracy.

Ahead of the French vote on the European Constitution in 2005 he said: "If it's a Yes, we will say 'on we go', and if it's a No we will say 'we continue'"
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And in 2011 he said "monetary policy is a serious issue - we should discuss this in secret, in the Eurogroup... I am for secret, dark debates".

His greatest EU challenge has been shoring up the eurozone since the 2008 financial crash, when Greece's colossal debts, and those of other struggling eurozone countries, threatened the very survival of the single currency.

Mr Juncker is a strong advocate of a European "solidarity" union - an EU that strives to raise living standards in its poorest regions and sectors.

He has not explained how an EU-US free trade deal might impact on EU social protection policies, which currently cost the EU many billions through support for farmers and projects to help poor communities.

He claimed that such a deal would give each European an extra 545 euros (£443; $742) - an exaggeration, according to a fact check by Eurovision, which hosted the debate.

He has also defended the Common Agricultural Policy, saying agriculture employs about 30 million Europeans. But the UK government is among the many critics who say the CAP is wasteful and want more of the EU budget spent on digital technologies, research and investment in small businesses.

Mats Persson, director of the Open Europe think-tank, says Mr Juncker is associated with the EU of the 1980s and 1990s, echoing a criticism attributed to UK Prime Minister David Cameron.

After an election that saw a surge in support for Eurosceptic parties, that connection with past EU policies may be a disadvantage, Mr Persson told the BBC, adding that Mr Juncker was "sidelined quite a bit during the eurozone crisis" and "ran a vague election campaign".

However, Mr Juncker is not vague about the political risks of taking tough economic decisions. He once said "we all know what to do, we just don't know how to get re-elected after we've done it"

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