Macron Pays ECB's Weidmann Backhanded Compliment: Summit Update

EU’s Credibility at Stake Over Top Jobs Impasse: Summit Update

22 Jun 2019, 02:37 AM IST

(Bloomberg) --

European Union leaders are looking ahead to an emergency summit next weekend to try and break a deadlock over who’s going to lead the bloc’s key institutions after they failed at an all-night session in Brussels to reach a deal.

At stake is oversight of monetary policy for the euro area and regulation of the vast single market stretching from the Arctic circle to the Mediterranean.

Key Developments:

Leaders to meet June 30 to decide who should fill top EU and ECB posts
Race to lead the commission thrown wide open after the three formal candidates -- Manfred Weber, Frans Timmermans and Margrethe Vestager -- were cast aside
German Chancellor Angela Merkel’s Christian Democrats stuck to position that as the largest party they should name the new head of EU executive arm
Here are potential contenders for Jean-Claude Juncker’s job
Brexit is also on Friday’s agenda -- follow our updates

Macron Gives Weidmann Backhanded Compliment (2:30 p.m.)

French President Emmanuel Macron praised Bundesbank chief Jens Weidmann for reversing his assessment of the policies of outgoing ECB chief Mario Draghi. But the French leader’s compliment was not without a touch of derision.

“I’m really happy, I mean really happy, that members who strongly opposed, who sought legal recourse against Mario Draghi’s decisions, against the OMT and all the mechanisms, are converting, perhaps a bit late but they are converting with vigor,” Macron said. “I think that shows that we’ve all got good in us and we can all improve ourselves. So above all, the lesson I learn from this is one of optimism for human nature.”

Weidmann this week said the ECB’s crisis-fighting tools are legal and valid. Previously, the German economist had even testified in court against the measure known as Outright Monetary Transactions.

Rutte: EU Not to Blame for Spitzenkandidat System (3 p.m.)

Dutch Prime Minister Mark Rutte said the Spitzenkandidat process -- whereby political parties name someone to lead their ticket for European Parliament elections who then becomes their candidate for the European Commission -- was concocted by the parties.

The fact that there’s no majority for the formal candidates of the top three parties “doesn’t mean that we now have potentially 500 million people eligible for the post, except for these three,” he said.

The three “are still part of the debate” to see “whether its possible to find a majority for them,” he said. “One thing will be needed for us: quality quality quality.”

Conte Raps Lectern, Saying Italy’s Numbers Better (2:30 p.m.)

Italian Prime Minister Giuseppe Conte, usually an unflappable figure, grew quite animated and repeatedly banged the lectern as he took issue with the commission’s estimates for Italy’s finances, which the EU’s executive arm is using in talks over a possible infringement procedure against Italy for failing to rein in debt.

“The commission did some projections, we have constant monitoring so we have the real numbers,” Conte told reporters after the summit. The government’s projection for public finances “is much closer to reality because it goes to the end of June.”

Conte’s knocking sent a tape recorder tumbling to the floor. “Have I broken something?” he asked.

Draghi Gets Standing Ovation at Summit (2:00 p.m.)

EU leaders gave Draghi a standing ovation at what was -- probably -- his last EU summit appearance. Several leaders took to the floor to praise his work, including Macron and Conte, according to a person familiar with the matter. The widely respected central bank chief was lauded for his efforts to save the euro during the financial crisis, highlighting the big shoes his successor will have to fill.

Tusk Defends Job Selection Process as Transparent (1:30 p.m.)

European Council President Donald Tusk defended the process of choosing a new commission president, saying it’s “pretty transparent.’’

“Sometimes what I feel is the public knows more about the possible candidates than me,’’ Tusk said to reporters. “It means the transparency is on a really high standard and level.’’

Juncker seemed to take issue with Tusk’s assessment, replying to a reporter: “You’re right to say that last time it was more transparent.’’

Macron Pays ECB's Weidmann Backhanded Compliment: Summit Update

Merkel Doesn’t See Much Hope for Formal Candidates (1:15 p.m.)

Merkel cast doubt over the chances of Weber and the other two Spitzenkandidaten winning the job running the EU’s executive arm, saying Tusk had made clear to leaders that all three formal candidates lacked a majority.

The German leader, who said earlier in the day that “under no circumstances” should there be a conflict with the European Parliament in the decision-making process over top jobs, said the same goes for cooperation with Macon.

“We respect each other and I can say clearly that I don’t want to make a decision against France and I think France also doesn’t want to make a decision against Germany,” she said.

Merkel also reiterated her stance that she has no intention of taking a top job herself, and drew chuckles when she said people should start taking her for her word on that.

Poland Focuses on Gender, Regional Balance in Jobs (1:00 p.m.)

Polish Prime Minister Mateusz Morawiecki said he’s “moderately optimistic’’ that the EU leaders can come together to find a candidate to fill the top European Commission role.

“We need candidates who can build bridges and not divide the EU,’’ Morawiecki said on Friday. “In the coming days there will be numerous meetings and bilateral consultations.’’

Even though leaders are shooting to have a decision on June 30, Morawiecki said it’s possible that the talks will extend beyond this month.

Sarec Says Nothing Decided Until It’s All Decided (12:45 p.m.)

Slovenia Prime Minister Marjan Sarec declined to discuss any of the names in play in the top job shuffle, saying that once a name is mentioned “it often means the end of the game.’’

“I will be happy with any progress,’’ Sarec said after the summit. “Until all is decided nothing is decided.’’

Bettel Says EU’s Credibility Is at Stake (12:30 p.m.)

Luxembourg Prime Minister Xavier Bettel is pressuring his fellow EU leaders to clinch a decision on the bloc’s top jobs at the extraordinary summit on June 30.

“I am of the view that if we don’t manage to agree next week, that we won’t give a very good image of Europe,’’ Bettel said after the meeting wrapped up on Friday, adding that he is not interested in a top post himself. “This is also about the credibility of Europe.’’

Earlier:

--With assistance from Jonathan Stearns, Milda Seputyte, Lyubov Pronina, Ewa Krukowska, Ian Wishart, Patrick Donahue, Stephanie Bodoni, Richard Bravo, Nikos Chrysoloras and Jan Bratanic.

To contact the reporters on this story: John Follain in Brussels at jfollain2@bloomberg.net;Viktoria Dendrinou in Brussels at vdendrinou@bloomberg.net;William Horobin in Brussels at whorobin@bloomberg.net

To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Chad Thomas, Zoe Schneeweiss