The Balancing Act of EU’s Economic Policy: Navigating through Traditional Divides and Fiscal Liberalism.

Europe is concerned about the possibility of France and Italy taking control of the EU’s economic jobs

The European Commission has a rule that requires a geographically balanced composition in each policy area. This means that there must be representation from all member states in order to maintain harmony within the EU. Over the past five years, this rule has been upheld by Valdis Dombrovskis, who balanced out Italian Paolo Gentiloni’s leadership of the economy department. However, now Dombrovskis is eyeing a role focusing on Ukraine, leaving a gap in the Commission for a fiscally liberal leader.

In the past, French President Emmanuel Macron and Italy’s Meloni have sometimes found themselves on the same side when it comes to economic policy. Despite their traditionally supporting looser fiscal rules and more common borrowing, they have put aside their differences for the sake of maintaining harmony within the EU. However, diplomats from frugal EU countries are wary of another Italian or French leader in the economics department due to their spending plans potentially being harmful to the EU.

The absence of a figure like Margrethe Vestager, who was popular among economically liberal EU countries, leaves a gap in the Commission that has yet to be filled. Vestager represented Northern Europe and often disagreed with Breton, who was in charge of the industrial portfolio. With her departure, there is now a need for balance of fiscal policies within the EU to maintain harmony among member states.

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