Breton quits as France's EU commissioner, criticises von der Leyen

By Michel Rose and Foo Yun Chee

PARIS/BRUSSELS (Reuters) -Thierry Breton of France abruptly resigned from the European Commission on Monday and was replaced by Foreign Minister Stephane Sejourne as his country's candidate for the next EU executive body, an unexpected twist in the highly political EU power transition.

Breton announced his resignation in a toughly-worded statement as Commission President Ursula von der Leyen - whom he accused of "questionable governance" - prepares to announce this week who will be part of her new five-year team.

As France appointed Sejourne, a close ally, and a former EU lawmaker, as its new candidate, President Emmanuel Macron's office made clear he was vying for a key portfolio centered on industrial sovereignty and European competitiveness.

Breton, one of the highest-profile members of the European Commission for the past five years, is best known for sparring publicly with tech billionaire Elon Musk and playing a key role in shaping the 27-nation EU's Big Tech regulation, its COVID-vaccine response and efforts to boost defence industries.

In his resignation letter, Breton alleged that von der Leyen, with whom he has fallen out, had asked France "a few days ago" to withdraw his name as its pick for the Commission "for personal reasons" in return for an "allegedly more influential portfolio".

"In light of these latest developments - further testimony to questionable governance - I have to conclude that I can no longer exercise my duties in the College," Breton said in the letter.

Reuters was unable to verify the allegation. Von der Leyen's office declined to comment on Breton's comments and his resignation. A Commission spokesperson said von der Leyen still hoped to be able to present the proposed new Commission team on Tuesday.

KEY JOBS

The move can also been seen as a power play between the EU's two biggest heavyweights - von der Leyen's home country Germany and France - over who calls the shots in the EU at a time when Macron is weakened at home after having lost EU and French parliamentary elections.

As the EU's second-biggest member state, France is eyeing a major post in the shake-up of key jobs in EU institutions that follows the June European Parliament elections.

"The President of the Republic has always defended obtaining for France a key portfolio of European Commissioner, focused on the issues of industrial, technological sovereignty and European competitiveness," Macron's office said in a statement.

"This is the meaning of all the contacts he has had with the President of the European Commission since her election by the European Parliament."

Sejourne, who led his party's ticket in the EU elections in 2019, kept a rather low-key profile at France's foreign ministry, which he had been leading since January, and where he stuck to, and defended, Macron's line.

Breton, a former French minister and business executive, was the EU's industry and internal market commissioner during von der Leyen's first term. He had backed the telecoms sector' push to get Big Tech to help fund the rollout of 5G and fast-speed broadband across Europe.

Their relationship had taken a turn for the worse over recent months. The French commissioner, a liberal, had angered von der Leyen by publicly criticising her nomination as the European conservative EPP's party candidate to head the Commission for a second term, EU officials have said.

Breton's public feuds with Musk had also been met with dismay among other Commission colleagues, officials added.

Nevertheless, the latest developments were a surprise, a person with direct knowledge of the matter said, adding that Breton had been expected to be reappointed by von der Leyen.

(Writing by Ingrid Melander; Additional reporting by Tassilo Hummel, John Irish in Paris, Andrew Gray, Sudip Kar-Gupta in Brussels, Bart Meijer in Amsterdam; Editing by Angus MacSwan)