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France's Moscovici struggles to convince EU lawmakers
European Economic and Financial Affairs, Taxation and Customs Union Commissioner-designate Pierre Moscovici of France adjusts his glasses as he attends his hearing before the European Parliament's Committee on Economic and Monetary Affairs at the EU Parliament in Brussels, October 2, 2014. PHOTO BY REUTERS/Francois Lenoir
By Jan Strupczewski and Barbara Lewis
02/10/2014
BRUSSELS (Reuters) - France's Pierre Moscovici struggled to convince European Union lawmakers on Thursday he could enforce budget rules that his own country has repeatedly breached, as the formation of a new European Commission turned into a tit-for-tat political battle.
The Socialist, who was finance minister in Paris until six months ago, promised to apply the bloc's deficit rules equally to all euro zone states, including his own, if confirmed as economic and monetary affairs commissioner.
But he faced a barrage of scepticism from conservative lawmakers who asked how he could credibly recommend reforms and cuts to ministers that he had not implemented himself at home.
"Budgetary rules have to be respected, and respected by all member states, without being harder on some more than others," Moscovici told a European Parliament confirmation hearing.
"You can count on me to be a fair and impartial arbiter," he said, promising: "The rules will be my only compass."
Faced with repeated identical questions, he exclaimed in French, German and English: "All countries have to respect the pact."
With the delicate political balance of his proposed team threatening to unravel, Commission President-elect Jean-Claude Juncker stepped in to try to quell criticism of his nominees.
"President-elect Juncker believes that all candidates so far have convincingly demonstrated their competence and European commitment," his spokesman told reporters.
Parliamentary sources said a decision on whether to confirm Moscovici could be delayed until next week and could be treated as part of a political package deal involving other disputed appointments.
"ANIMAL FARM COMMISSIONER"
Moscovici's torrid interrogation came a day after France defied its partners by unveiling a 2015 budget that will again miss EU targets, saying it would need two more years - on top of a two-year delay already granted - to bring its deficit below the treaty limit of 3 percent of national output.
Echoing Paris, he said deficits could not be cut without economic growth, and he would use all the flexibility available in the EU's rulebook to promote investment, growth and jobs.
He drew gasps of incredulity when he said Paris had never broken the rules, since each of its budgets had been approved in advance and in execution by the EU authorities.
Dutch conservative Esther de Lange asked whether he would be "an Animal Farm commissioner for whom some countries are more equal than others". Her Austrian colleague, Othmar Karas, spoke of a "credibility gap" between what Moscovici said he would do now and what he had not done at home.
The tough questioning appeared to be partly retaliation for the rough ride left-wing and Greens lawmakers gave on Wednesday to the Spanish conservative nominee for EU energy and climate action chief, Miguel Arias Canete, over his family links to the oil industry.
The left and Greens also forced the British nominee for financial services commissioner, Jonathan Hill, to resit his examination next week after he stumbled over detailed questions on Eurobonds, high frequency trading, shadow banking and his plans for a proposed EU capital markets union.
REVENGE
Centre-right lawmakers were out for revenge and the French Socialist was an obvious target given Paris' budget woes.
"Moscovici is hardly credible. He did not convince his own government to ensure compliance with the Stability Pact and to enforce deep economic reforms. How will he be able to convince 28 member states?" German conservative Burkhard Balz said after the hearing in a statement that sounded critical but did not rule out eventual confirmation for the Frenchman.
Claude Turmes, a Green from Luxembourg, spoke of a "dirty game behind the scenes" in which the right was blocking a committee vote that could kill off Arias Canete's candidacy and threatening to block the high-profile appointment of Moscovici.
Juncker had hoped a broad understanding between his centre-right and the mainstream left could secure swift passage of a team he says can revive the economy and win back voters who returned a phalanx of anti-EU parties to the parliament in May.
But many lawmakers are also keen to demonstrate their independence from the Commission, and from the 28 governments of the Union, each of which nominates one member to the executive.
After the approval of the first 10 of the nominees in the first two days of hearings, the angry committee room scenes threatened to disrupt a timetable for the new Commission to be approved en bloc on Oct. 22 and take office on Nov. 1.
Any delay could draw national leaders into the dispute and might, if prolonged, leave the outgoing team of Jose Manuel Barrosoas a lame duck to handle the confrontation with Russia over Ukraine, trade negotiations with Washington and rumbling divisions over austerity and deficits in the euro zone.
In another tough hearing, Hungary's Tibor Navracsics had to rebuff questions on his role in a Budapest government that has clashed with the EU over its treatment of minorities and laws that Brussels says restricted the media and free speech.
It was not clear what the next steps on Arias Canete and Navracsics's candidacies would be. One EU official said Juncker did not expect more parliamentary decisions until Monday.
(Writing by Alastair Macdonald and Paul Taylor.; Editing by Mike Peacock)
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