American economist withdraws from EU top position after controversy

The debate on how autonomous Europe should become has now also reached the personnel policy of the European Commission. Top American economist Fiona Scott Morton stepped down on Wednesday as the new chief competition economist in Brussels. Fierce controversy had arisen around her appointment in recent days, in which French President Emmanuel Macron also got involved.

Macron expressed “skepticism” about Scott Morton’s appointment on Tuesday, insisting that if Europeans want to have more “autonomy in their thinking”, it was “not necessarily the most coherent decision”. Earlier, French ministers and MEPs had already strongly criticized the appointment. Five European Commissioners also joined on Tuesday evening.

Scott Morton was appointed to the influential position in the competition department of the European Commission last week. The chief economist acts as an adviser to the European Commissioner in launching competition investigations, approving state aid and assessing mergers. The position is considered important, especially now that Brussels is preparing for an even stricter approach to large tech companies.

Multiplication of functions

And it was precisely there that the appointment of Scott Morton, who in the past did consultancy work for companies such as Microsoft and Apple, chafed. She has also worked for the US government and was a professor at Yale in recent years. Such a mixing of functions is not unusual for senior competition lawyers: almost all of them combine work at universities and for governments with private jobs for large companies.

But as chief economist at the Commission, Scott Morton should stay aloof from matters involving companies she once worked for. And now that Brussels wants to tackle precisely those large companies, that would not be very useful, according to critics.

But more than potential conflicts of interest, critics have pointed to her American nationality in recent days. Scott Morton was the first non-European to be appointed to the position of influence, for which an exception had to be invoked. Especially in France, the appointment was big news in recent days and politicians tumbled over each other to condemn it sharply.

France is leading the fight for more ‘strategic autonomy’ in the European Union. This means that the EU should become less dependent on other major powers, such as the United States or China. That ‘autonomy’ also means a tougher stance against large American tech companies, including through competition law. Can an American do that, French politicians wondered. Macron openly doubted whether the United States or China would ever appoint a European.

‘Dear person’

European Commissioner Margrethe Vestager (Competition), responsible for the appointment, defended herself against MEPs on Tuesday. The Danish stressed that there was not exactly a large pool of top experts from which the Commission could fish and that Scott Morton’s expertise is undisputed. “I have tried to appoint the best person for this position,” said Vestager.

Renowned economists already jumped into the breach for Scott Morton on Monday. Among others, Nobel laureate Bengt Holmstrom and French top economist Olivier Blanchard signed a letter defending Scott Morton as “one of the best economists in the world” who is “strongly motivated for the public service”. The Commission, say the economists, should “recruit the best possible staff irrespective of their nationality”.

It was to no avail: especially since the French president intervened in the discussion on Tuesday, Scott Morton’s position became untenable. On Wednesday, she decided to withdraw herself “in view of the controversy”. It means a defeat for Vestager, who had fiercely defended her a few hours earlier and accepted the decision “with regret” in a statement on Wednesday.

It also means that Brussels has to look for a replacement, which does not seem to be an easy job. Macron also expressed concern over the argument that no European candidate was qualified. “That means we have a big problem with the European academic system.”

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