Commission to reopen chief economist vacancy after Scott Morton withdraws

It’s back to the drawing board for the European Commission after its proposed candidate for chief competition economist withdrew under withering criticism.

Fiona Scott Morton, an American citizen who recently consulted for several Big Tech companies, wrote to Executive Vice President Margrethe Vestager this morning she wouldn’t take up the position, “given the political controversy that has arisen because of the selection of a non-European to fill this position.” The Commission was under mounting pressure, including from French President Emmanuel Macron, to reverse its decision.

With its preferred horse out of the race, the Commission has reopened the procedure. “Given the withdrawal of Dr. Morton, the Commission will, in due course, publish a new vacancy notice for the position of Chief Economist at DG Competition and conduct a new selection procedure,” spokesperson Balazs Ujvari said.

It has little other choice: Commission spokesperson Arianna Podestà said last week there had been “a limited number of applicants.” Defending the appointment before MEPs on Tuesday, Vestager said only four candidates met the role’s requirements, and Scott Morton was the strongest of them.

Macron said Tuesday it would be “extremely worrying” if there were no good European candidates for the role but that may reflect the procedure rather than a lack of homegrown talent. It has been an open secret in Brussels for several months Scott Morton was Vestager’s preferred candidate.

Several qualified economists did not apply because they knew Scott Morton was the candidate with the best chance of being appointed, according to two economists and a consultant familiar with the proceedings, who were granted anonymity to speak freely. They might apply this time around.

“If next time there aren’t more and better candidates, I’ll … agree with Macron that we do indeed have a problem,” said a senior EU official closely involved with the selection procedure.

“We’re starting from scratch, we’ll republish the offer probably in September. We’re not allowed to publish in August, otherwise we’d only have one candidate,” said the official — referring to the long summer holiday in which many potential applicants are likely to be unreachable.

That means the anticipated start date of September 1 is no longer likely and the Commission will need to either extend Pierre Régibeau’s term or have a deputy step up in an acting capacity for a few months.

September is a crucial month in competition policy, with the Commission due to designate “gatekeepers” under its Digital Markets Act: large online platforms deemed to have exceptional market power that will be subject to much tighter regulation.

Supporters and opponents of Scott Morton’s nomination can now agree on one thing: The opaque procedure to appoint her and her sudden withdrawal have caused chaos in the heart of Brussels.

“Who will clean up the mess?” tweeted Martin Peitz, a prominent economist who had signed a joint letter on Monday saying the nomination should stand.

Bram Vranken, a researcher at Corporate Europe Observatory, which scrutinizes lobbying and opposed the appointment, said it was evidence of a systemic problem. “Unfortunately, the appointment of Fiona Scott Morton is not an exception. There is a structural revolving door problem at DG Competition,” he told POLITICO. “This whole episode highlights that the Commission’s conflict of interest processes are insufficient.”

A former senior official within DG COMP, who was granted anonymity to speak freely, said some of Vestager’s team felt she fixated too early on Scott Morton and failed to consult with colleagues who could have tapped their networks for other qualified applicants.

“Usually the DG Competition team and the chief economist team advise on the issue and informally contact people to check availability. The Commissioner is not involved until the final stage, but this did not happen this time,” the official said.