'Totally unfair' that EU countries making money on energy crunch: Former EU commissioner Breton

Key Concepts

• Rule of Law: The foundational principle of the European Union, ensuring all member states adhere to democratic standards, judicial independence, and freedom of the press.
• Digital Services Act (DSA) & Digital Markets Act (DMA): Landmark EU regulations designed to regulate Big Tech, ensure fair competition, and protect users within the European digital space.
• Article 42.7 (TEU): The EU’s mutual defense clause, which mandates that member states provide aid and assistance if another member state is the victim of armed aggression.
• VAT Redistribution: A proposed economic policy where governments return the "windfall" tax revenue generated by artificial energy price spikes to vulnerable sectors (e.g., farmers, transport).
• McCarthyism: A term used by Thierry Breton to describe the political targeting of individuals (such as himself) through US travel bans due to their regulatory work.

1. Political Shift in Hungary

Thierry Breton discusses the electoral victory of Peter Magyar and the TISZA party, which ended Viktor Orbán’s 16-year tenure.

• Constitutional Impact: Magyar’s party secured a two-thirds parliamentary majority, granting them the power to amend the constitution.
• Restoring Rule of Law: Breton emphasizes that the previous administration failed to uphold EU standards, specifically regarding media freedom and the harassment of journalists.
• Public Sentiment: Reports from Budapest indicate that young Hungarians (nearly two-thirds of whom voted for Magyar) are driven by a desire to end systemic corruption and strengthen ties with Brussels rather than Moscow or Washington.

2. Geopolitics and European Defense

Breton addresses the Middle East conflict and the necessity for European strategic autonomy.

• Unilateralism: Breton argues that Europe suffers when it is excluded from major geopolitical decisions made by the US. He notes that the current conflict was a unilateral US decision, not a European one.
• Commitment to Defense: Following Iranian missile strikes on Cyprus, Breton highlights the activation of Article 42.7. He asserts that for Europe, "keeping our commitment is mandatory" and that security partnerships are not subject to negotiation.
• Energy Crisis Management: To mitigate the impact of rising energy prices on European citizens and businesses (such as airlines), Breton proposes that governments should not profit from the "artificial" increase in VAT revenue. Instead, he advocates for the immediate redistribution of these funds to impacted sectors like agriculture and logistics.

3. The US Travel Ban and Digital Regulation

Breton addresses his personal experience of being placed on a US travel ban list following his tenure as EU Commissioner.

• The "Mastermind" Narrative: Breton believes he was targeted as a symbol of the DSA and DMA. He clarifies that these regulations are not anti-American, anti-Chinese, or anti-Singaporean, but are universal standards for the European digital market.
• Democratic Legitimacy: He stresses that these acts were not his personal initiatives but were supported by 27 member states and passed with 90% approval from the European Parliament.
• Political Isolation: When asked about the lack of support from European Commission President Ursula von der Leyen regarding the travel ban, Breton acknowledged the interviewer's observation that the support was notably absent compared to the backing he received from French President Emmanuel Macron.

4. Synthesis and Conclusion

The interview highlights a pivotal moment for the European Union, characterized by a push for internal democratic renewal in Hungary and a struggle for external strategic independence. Breton’s perspective is defined by a commitment to the "Rule of Law" as the "cement" of the EU. His stance on the US travel ban reflects a broader tension between European regulatory sovereignty and American political pressure. Ultimately, Breton advocates for a more proactive, unified European approach to both internal governance and external economic shocks, emphasizing that Europe must act as a cohesive bloc to protect its interests and values.