Daily Prelims Notes 2 August 2024

August 2, 2024
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Category: DPN

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Daily Prelims Notes

2 August 2024

Table Of Contents

1. India Needs 75 Years to Reach a Quarter of US Per Capita GDP: World Bank

Sub: Eco

Sec: National Income

Current Trends and Comparisons:

Projection: At current trends, India will take 75 years to reach a quarter of the United States’ per capita GDP, as per the World Development Report 2024 by the World Bank.
Other Comparisons:
- China: More than 10 years to reach a quarter of US income per capita.
- Indonesia: Nearly 70 years to achieve the same.

India’s Economic Goals:

Niti Aayog’s Vision:
- Strive to be a $30 trillion economy by 2047.
- Aim for a per capita income of $18,000 per annum.
- Current figures are $3.36 trillion economy and $2,392 per capita income.

Challenges Highlighted:

Economic Growth: India faces significant obstacles in becoming a high-income country.
Global Economic Shifts:
- From healthy to hobbling.
- From largely integrated too increasingly fragmented.
- Foreign trade and investment channels are becoming more restricted due to geopolitical tensions.

Firm Growth Rates:

Comparison with the US:
- Firms in India, Mexico, and Peru expand by less than a factor of 3.
- In the US, small firms with up to four workers decline by 60% by age 25.
- In India, this decline is only about 10%.

Economic Mechanisms:

Creative Destruction:
- Lack of dynamism in firms with growth potential.
- Ineffective selection among firms hinders resource reallocation to more productive users.

Middle-Income Trap:

Global Perspective:
- Over 100 countries, including India, face challenges in becoming high-income countries.
- The World Bank report outlines a roadmap to escape the “middle-income trap.”
Historical Context:
- Only 34 middle-income economies have shifted to high-income status since 1990.
- Successful transitions often involved EU integration or newly discovered oil.

Middle-Income Countries Classification:

Statistics:
- As of the end of 2023, there are 108 middle-income countries.
- Annual GDP per capita ranges from $1,136 to $13,845.

2. Govt to Decide Fate of Sovereign Gold Bond Scheme by September

Sub: Eco

Sec: External Sector

Decision Timeline:

The government is likely to make a decision on the continuation of the Sovereign Gold Bond (SGB) scheme by September 2024, coinciding with the Reserve Bank of India’s (RBI) borrowing meeting.

Purpose and Current Status:
- The SGB scheme was introduced as an investment option rather than a social security measure.
- It is considered one of the more expensive tools for financing the government deficit.
- As of now, there are no alternative schemes being explored.
Features of SGBs:
- Nature: Government securities denominated in grams of gold.
- Substitute for Physical Gold: Provides an alternative to holding physical gold, offering advantages such as no making charges and purity issues.
- Holding: Can be held in RBI books or demat form, reducing risks associated with physical possession.
- Redemption: Redeemed in Indian rupees based on the average closing price of gold of 999 purity over the previous three business days before repayment.
Benefits:
- Interest: Investors receive periodical interest.
- Collateral: Can be used as collateral for loans from banks, financial institutions, and NBFCs.
- Tax Exemption: Individuals are exempted from paying capital gains tax on redemption.
- Trade and Transfer: Tradable upon RBI notification, and can be sold or transferred according to the Government Securities Act, 2006. Partial transfers are also possible.
Current Returns:
- Investors are set to receive 12% returns on Sovereign Gold Bonds maturing on August 5, 2024.

Conclusion

The Sovereign Gold Bond scheme has provided investors with a secure, tax-efficient alternative to physical gold, with added benefits like collateralization and tradability.

However, due to its cost implications for the government, its future is under review, with a decision expected by September 2024.

Sovereign Gold Bond (SGB) Scheme

Introduction Date: October 30, 2015.
Issued by: Reserve Bank of India (RBI) on behalf of the Government of India (GOI).
Denomination: Grams of gold.
Purpose: Substitutes for holding physical gold.

Eligibility:

Eligible Investors:
- Resident Indian entities including individuals (solely or jointly, or on behalf of a minor child), Hindu Undivided Families (HUFs), Trusts, Universities, and Charitable Institutions.

Investment Limits:

Minimum: 1 gram.
Maximum:
- 4 kg per fiscal year for individuals.
- 4 kg per fiscal year for HUFs.
- 20 kg per fiscal year for trusts and similar entities.
Joint Holding: 4 kg limit applied to the first applicant.

Tenor:

Duration: 8 years.
Exit Option: Available in the 5th, 6th, and 7th years, exercisable on interest payment dates.

Authorized Selling Agencies:

Channels: Nationalized Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL), and authorized stock exchanges.

Features:

Payment Methods: Cash (up to Rs. 20,000), demand draft, cheque, or electronic banking.
Maturity: Assured market value of gold.
Interest: Periodical and taxable as per Income-tax Act, 1961.
Collateral: Eligible for loans from banks, financial institutions, and NBFCs.
Tradability: Tradable on stock exchanges within a fortnight of issuance, as notified by RBI.
Transferability: Allowed as per Government Securities Act, 2006.
Capital Gains Tax: Exempted on redemption for individuals.

3. As Rate Cuts Near, Investors Assess Fed’s Soft-Landing Strategy

Sub: Eco

Sec: Monetary Policy

Fed’s Plan for Rate Cuts:
- Fed Chairman Jerome Powell indicated a potential rate cut in September if inflation cools.
- This is the strongest signal yet of easing monetary policy soon.
Investor Concerns:
- Soft Landing Feasibility:
  - Some believe the Fed may have kept rates high for too long, risking the chance of a soft landing (lowering inflation without hurting growth).
- Reigniting Inflation:
  - Easing monetary policy when the economy is robust could reignite inflation, limiting the extent of rate cuts.
Market Reactions:
- Futures Pricing:
  - Futures tied to the Fed’s policy rate show an 87% chance of a 25 basis-point cut in September.
- Stock Market Performance:
  - S&P 500 closed up 1.6%, but Wall Street’s indexes nosedived after new economic data suggested potential recession risks.
Treasury Yields:
- Two-Year Treasuries:
  - Yields dropped about eight basis points to 4.278%, the lowest in nearly six months.
- Benchmark 10-Year Yields:
  - Shed nearly four points to 4.1%.

Concerns

Too Late for Soft Landing?
- Resilient U.S. Economy:
- Employment data shows resilience despite high interest rates.
Rising Jobless Rate:
- Policymakers are focusing on avoiding sharp unemployment increases, a common result of high interest rates and slowing inflation.
Economic Fraying:
- Concerns if fraying at the edges will lead to a full-blown slowdown (Peter Baden, Genoa Asset Management).
Lag Effect:
- Timing of Rate Cuts:
  - Some worry it will take too long for rate cuts to stimulate growth.
Risk of Recession:
- Starting cuts in September may not be enough to alter the economy’s course going into 2025 (Jack McIntyre, Brandywine Global Investment Management).
Immediate Rate Cut Call:
- Former NY Fed chief Bill Dudley advocates for an immediate cut, citing the Sahm Rule (rising jobless rate as a recession indicator).
Shallow Rate-Cutting Cycle:
- Inflationary Rebound Risk:
  - Lower rates could spark inflation similar to earlier this year (Hans Mikkelsen, TD Securities).
Market Rotation Impact:
- A shallower-than-expected rate cut could disrupt market rotation into small-cap stocks and other beneficiaries (Jack Janasiewicz, Natixis Investment Managers).
Asset Prices:
- Current Gains:
- Impressive gains in U.S. stocks might mean Fed easing is already factored into asset prices, limiting future upside.
Historical Performance:
- S&P 500 data shows lower gains post-rate cut compared to between the last hike and first cut.
Equity Market Valuations:
- 10-year Treasury likely to stay around 4% for the first half of 2025, with equity market valuations appearing “pretty full” (Tony Rodriguez, Nuveen).

In conclusion, while there is optimism about achieving a soft landing with potential rate cuts, significant risks and uncertainties remain, including the timing and impact of these cuts on both inflation and economic growth.

4. Above-normal rain expected in August and September, says IMD

Sub: Geo

Sec: Climatology

Context:

The India Meteorological Department (IMD) predicts above-normal rain for August and September.

Monsoon Rainfall Prediction:

August is expected to receive normal rainfall.
September is likely to receive more than the average 17 cm of rainfall if the forecast of an “above-normal second half” of the monsoon holds true.
The IMD predicts rainfall from August to September to be above normal, exceeding 106% of the Long Period Average (LPA).

El Nino and La-Nina conditions:

El Nino and La Nina are complex weather patterns resulting from variations in ocean temperatures in the Equatorial Pacific Region. They are opposite phases of what is known as the El Nino-Southern Oscillation (ENSO) cycle.
- The ENSO cycle describes the fluctuations in temperature between the ocean and atmosphere in the east-central Equatorial Pacific.
El Nino and La Nina episodes typically last nine to 12 months, but some prolonged events may last for years.
El Nino is a climate pattern that describes the unusual warming of surface waters in the eastern tropical Pacific Ocean.
- It is the “warm phase” of a larger phenomenon called the El Nino-Southern Oscillation (ENSO).
- It occurs more frequently than La Nina.
La Nina, the “cool phase” of ENSO, is a pattern that describes the unusual cooling of the tropical eastern Pacific.
- La Nina events may last between one and three years, unlike El Nino, which usually lasts no more than a year.
Both phenomena tend to peak during the Northern Hemisphere winter.

Impacts of Increased Rainfall:

Increasing rainfall in September could damage standing crops.
La Nina or La-Nina-like conditions may develop by the end of August, potentially leading to more rain in September.
Heavy rain in September and October, when the monsoon retreats, can affect winter sowing and increase air pollution in northern India.

Source: TH

5. What early warning did Kerala have before Wayanad disaster?

Sub: Geo

Sec: Climatology

Context:

Union Home Minister Amit Shah discussed early warning systems and alerts given to the Kerala government before the Wayanad landslides.

National Monsoon Mission:

It was launched by the Ministry of Earth Sciences in 2012.
Aim: To improve forecasting skills by setting up a state-of-the-art dynamic prediction system for monsoon rainfall at different time scales.
NMM builds a working partnership between the academic and research and development (R&D) organisations, both national and international.
Its augmentation with the HPC facilities has helped the country achieve a paradigm shift in weather and climate modelling for operational weather forecasts.
Phase I of the Monsoon Mission was completed in 2017, with Phase II beginning in September 2017, focusing on weather/climate extremes prediction and related applications.

Atmosphere & Climate Research-Modelling Observing Systems & Services (ACROSS):

It pertains to the atmospheric science programs of the Ministry of Earth Sciences (MoES) and addresses different aspects of weather and climate services.
Each of these aspects is incorporated as eight sub-schemes under the umbrella scheme “ACROSS”.
The sub-schemes are the Commissioning of Polarimetric Doppler Weather Radars (DWRs), Upgradation of Forecast System, Weather & Climate Services, Atmospheric Observations Network, Numerical Modelling of Weather and Climate, Monsoon Mission III, Monsoon Convection, Clouds and Climate Change (MC4) and High-Performance Computing System (HPCS).
Implementation:
- It will be implemented by the Ministry of Earth Sciences through its institutes namely the India Meteorological Department (IMD), Indian Institute of Tropical Meteorology (IITM), National Centre for Medium-Range Weather Forecasting (NCMRWF), and Indian National Centre for Ocean Information Service (INCOIS).
Each institute has a designated role for accomplishing the above tasks through the aid of eight schemes.
The Budget allocation for ACROSS, which includes the Monsoon Mission, decreased by ₹50 crore in 2024.

Source: TH

6. The relevance of pumped storage projects

Sub: Geo

Sec: Hydrology

Context:

The Union Budget for 2024-25 announced a policy to promote pumped storage projects for electricity storage and the integration of renewable energy.

Pumped Storage hydropower (PSH):

Solutions for storing variable renewable energy include batteries and compressed air storage, but pumped storage using water is widely adopted.
Pumped storage functions like large batteries, using water to store and generate power.

How does pumped storage hydropower work?

Water is pumped from the lower reservoir to the upper reservoir in times of high electricity supply, such as during the day when electricity can be supplied by the sun’s charging of solar panels, and/or low demand.
In times of reduced electricity supply and/or high demand, such as at night, when some electrical load remains but the sun is not shining and solar energy is inaccessible, water from the upper reservoir is released to the lower reservoir, generating electricity as it moves down through a turbine.

Types of Pumped Storage Hydropower:

On-river projects are similar to hydroelectric projects supplied by a river.
Off-river projects have two reservoirs at different levels, creating a closed loop for water to be pumped up or let down to generate power.
The Kadamparai project in Tamil Nadu is an example of off-river pumped storage.

Operation of Kadamparai Pumped Storage Plant:

Tamil Nadu generates half of its power from wind and solar at noon.
Solar power in Tamil Nadu peaks at around 5,000MW at noon but drops to zero at sunset.
Kadamparai plant, established 37 years ago, has four 100MW units.
The plant uses surplus solar power to pump water to a higher reservoir during the day.
Each unit requires 20% more power to pump water than it generates, but it uses solar energy, saving fuel.
The plant switches from pumping to generating mode to support evening peak loads, producing 400MW of power for three to four hours.
The upper reservoir has around 1 TMC feet of water, replenished by natural rainfall.

Importance of Pumped Storage:

India aims to create 500GW of non-fossil fuel energy by 2030.
From 2021 to 2023, 23GW of non-fossil generation capacity was added, with 7.5GW from wind and solar energy in 2023-24.
Renewable power generation will increase but will be variable and “infirm”.
Policies prioritize using all generated renewable power, with curtailment as a last resort.
Advanced forecasting helps grid operators plan power generation from other sources to maintain a steady supply.

India’s Pumped Storage Capacity:

India has 3.3GW of pumped storage, with key projects in Nagarjunasagar, Kadana, Kadamparai, Panchet, and Bhira.
China leads with 50GW of pumped storage.
India needs to significantly increase its pumped storage capacity to meet renewable energy targets.

Source: TH

7. Supreme Court upheld States’ right to sub-categorise SCs for quota benefits

Subject: Polity

Sec: Constitution

Context:

In a 6:1 majority ruling, the Supreme Court on August 1 held that sub-classification within the Scheduled Castes (SCs) and Scheduled Tribes (STs) categories is permissible to extend the benefit of affirmative action. However, the seven-judge Bench headed by Chief Justice of India (CJI) D.Y. Chandrachud underscored that this must be based on “quantifiable and demonstrable data” instead of political expediency.

More on News:

In a separate but concurring ruling, Justice B.R. Gavai called upon States to devise a policy to identify and exclude the “creamy layer” (wealthier and more advanced members of a backward class) within the SC/ST categories from reservation benefits.
Accordingly, the top court overruled a 2004 verdict by a five-judge Bench in V. Chinnaiah v. State of Andhra Pradesh which had held that such sub-classification was not permissible since the SC/STs constituted “homogenous” classes.
Existing reservations being ‘sub-classified’ by a State, the Punjab government in 1975 issueda circular dividing its 25% SC reservation at that time into two categories. The first category reserved seats exclusively for the Balmiki and Mazhabi Sikh communities, granting them first preference for reservations in education and public employment.
The second category included all other SC communities. This caused considerable outrage since the Balmikis and Mazhabi Sikhs were considered two of the most economically and educationally backward communities in the State.
After remaining in force for nearly 30 years, the circular encountered legal trouble in 2004 when a five-judge Bench of the Supreme Court struck down a similar law introduced by Andhra Pradesh in 2000.
In V. Chinnaiah, the Andhra Pradesh Scheduled Castes (Rationalisation of Reservations) Act, 2000 was found to be violative of the right to equality under Article 14 of the Constitution.
The legislation was also found to offend Article 341 of the Constitution, which allows the President to notify a list of SCs for each State to extend reservation benefits.
Article 341(2) stipulates that only Parliament can include or exclude “any caste, race, or tribe” from this list of SCs. The Bench reasoned that this provision precludes States from altering the list, including through the sub-classification of reserved categories.
The Punjab government remained persistent and enacted a new law i.e. the Punjab Scheduled Castes and Backward Classes (Reservation in Services) Act, 2006, which once again provided first preference to the Balmikis and Mazhabi Sikhs.
Article 14 of the Constitution obligates the State to ensure that the same law applies only to those who are “similarly situated”, the judges reasoned that sub-classification within the SC/ST categories does not fall foul of the right to equality.
The verdict traced the power of the States to undertake such an exercise to Articles 15(4) and 16(4) of the Constitution which permits the introduction of “special provisions” in favour of any backward class of citizens. Justice Gavai pointed out that the right to equality of opportunity under Article 16 of the Constitution must account for the differing social positions of various communities.

SC’s Verdict on Sub-Classifications of SCs and STs:

Sub-Classifications Permitted: The Court ruled that states are constitutionally allowed to sub-classify SCs and STs based on varying levels of backwardness.
- The seven-judge Bench ruled that states can now sub-classify SCs within the 15% reservation quota to provide better support for the most disadvantaged groups.
- Chief Justice of India emphasised the difference between “sub-classification” and “sub-categorisation,” cautioning against using these classifications for political appeasement rather than genuine upliftment.
  - The Court noted that sub-classification should be based on empirical data and historical evidence of systemic discrimination, rather than arbitrary or political reasons.
- States must base their sub-classification on empirical evidence to ensure fairness and effectiveness.
- The Court clarified that 100% reservation for any sub-class is not permissible. State decisions on sub-classification are subject to judicial review to prevent political misuse.
- The Supreme Court has ruled that the ‘creamy layer’ principle, previously applied only to Other Backward Classes (OBCs) (as highlighted in Indra sawhney Case) should now also be applied to SCs and STs.
  - This means states must identify and exclude the creamy layer within SCs and STs from reservation benefits. The judgement responds to the need for a more nuanced approach to reservations, ensuring that benefits reach those who are truly disadvantaged.
- The court stated that Reservation has to be limited only to the first generation.
  - If any generation in the family has taken advantage of the reservation and achieved a higher status, the benefit of reservation would not be logically available to the second generation.

Constitutional Stance:

Articles 341 and 342:It grants powers to the President to notify SC and ST lists and to Parliament to create these lists.
- However, there is no explicit prohibition against sub-categorisation.
  - Article 341(1) of the Constitution gives the President the power to “specify the castes, races or tribes” in a state, which shall “for the purposes of this Constitution be deemed to be Scheduled Castes in relation to that State or Union territory, as the case may be”. Following such a notification, Article 341(2) states that only Parliament can include or exclude “any caste, race or tribe” from the list of SCs.

8. Bill to create Urban Disaster Management Authority introduced in Lok Sabha

Subject: Polity

Sec: Legislation in news

Context:

A bill that seeks to create Urban Disaster Management Authority for state capitals and large cities having Municipal Corporations and strengthen the working of the National Disaster Management Authority (NDMA) and the State Disaster Management Authorities was introduced in Lok Sabha .

More on News:

The Disaster Management (Amendment) Bill, also seeks to make provision for a “State Disaster Response Force” by the State Government, was introduced by Minister of State for Home Nityanand Rai.
Natural disasters has led to the loss of lives in Kerala, Himachal Pradesh and Uttarakhand in the last few days.
The bill seeks to amend the Disaster Management Act, 2005, which was enacted to provide for the effective management of disasters.
The main purpose of the Disaster Management Act was to put in place necessary institutional mechanisms for drawing up and monitoring the implementation of disaster management plans, ensuring measures by various wings of Government for prevention of and mitigating the effects of disasters and for undertaking a holistic, coordinated and prompt response to any disaster or threatening disaster situation.
To achieve this purpose, certain Authorities and Committees were established at the national level, state level and district level.

Disaster Management Act, 2005:

The DM Act was passed by the government of India in 2005for the ‘efficient management of disasters and other matters connected to it. However, it came into force in January 2006.

Objective:

To manage disasters, including preparation of mitigation strategies, capacity-building and more.
- Definition of a “disaster” in Section 2 (d)of the DM Act states that a disaster means a “catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man made causes.

Major Features of The Act:

Nodal Agency:
- The Act designates the Ministry of Home Affairs as the nodal ministry for steering the overall national disaster management.
Institutional Structure: It puts into place a systematic structure of institutions at the national, state and district levels.
- National Level Important Entities:
  - The National Disaster Management Authority (NDMA): It is tasked with laying down disaster management policies and ensuring timely and effective response
  - The National Executive Committee (NEC):
    It is constituted under Section 8 of the DM Act to assist the National Disaster Management Authority in the performance of its functions. The NEC is responsible for the preparation of the National Disaster Management Plan for the whole country and to ensure that it is “reviewed and updated annually.
  - The National Institute of Disaster Management (NIDM):
    It is an institute for training and capacity development programs for managing natural calamities.
  - National Disaster Response Force (NDRF):It refers to trained professional units that are called upon for specialized response to disasters
- State and District level:
  - The Act also provides for state and district level authorities responsible for, among other things, drawing plans for implementation of national plans and preparing local plans.
    - State Disaster Management Authority
    - District Disaster Management Authority.

9. Rajnath urged to stop export of arms and ammunition to Israel

Subject: Polity

Sec: Constitution

Context:

Any supply of military material to Israel would amount to a violation of India’s obligations under international humanitarian law and the mandate of Article 21 read with Article 51(c) of the Constitution of India, the letter addressed to Rajnath Singh states.

More on News:

A group of 25 “concerned” citizens, which includes former judges, diplomats, activists, writers and economists, have written to Defence Minister Rajnath Singh urging him to cancel licences for the export of arms and ammunition to Israel as it is in violation of India’s commitment under international law and the Constitutional mandate.
The International Court of Justice (ICJ) has clearly ruled that Israel is in violation of obligations under the Genocide Convention and further that Israel is in illegal occupation of the occupied Palestinian territory.
In light of these rulings, any supply of military material to Israel would amount to a violation of India’s obligations under international humanitarian law and the mandate of Article 21 read with Article 51(c) of the Constitution of India, the citizens noted. “We urge you, therefore, to cancel the concerned export licences and halt the granting of any new licences to companies supplying military equipment to Israel.”
The letter refers to three Indian companies — Munitions India Ltd. (MIL) a defence public sector undertaking, Premier Explosives Ltd. (PEL) and the Hyderabad-based joint venture, Adani-Elbit Advanced Systems India Ltd.

Article 51 in Constitution of India: Article 51 is one of the Directive Principles of State Policy based on Liberal-Intellectual principles. It deals with the Promotion of international peace and security, encourage settlement of international disputes by arbitration

Promotion of international peace and security

The State shall endeavour to—

(a) promote international peace and security;

(b) maintain just and honourable relations between nations;

(c)foster respect for international law and treaty obligations in the dealings of organised peoples with one another;

(d)encourage settlement of international disputes by arbitration.

Laws and Regulations in India for Genocide?

International Conventions:
- India does not have any domestic law on genocide, even though it has ratified the UN Convention on Genocide.
- India is a signatory to the UDHR and has ratified the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR).
Indian Penal Code (IPC):
- The Indian Penal Code (IPC) provides for the punishment of genocide and related crimes, and sets out the procedures for investigation, prosecution, and punishment.
- Genocide has been defined as a crime under IPC Section 153B, which criminalizes acts that promote enmity between different groups on grounds of religion, race, place of birth, residence, language, etc. with the intent to cause riots or commit acts of violence.
Constitutional Provisions:
- The Indian Constitution via Article 15 provides protection against discrimination on the basis of religion, race, caste, sex, or place of birth;
- Article 21 guarantees the right to life and personal liberty etc.
Statutory Provisions:
- The National Human Rights Commission (NHRC) of India was established in 1993 under the Protection of Human Rights Act (PHRA), 1993.
  - The act also provides for the establishment of State Human Rights Commissions.

10. On election of the European Commission president

Subject: IR

Sec: Int org

Context:

The newly constituted European Commission (EC), the executive arm of the European Union, elected Ursula von der Leyen, the EC’s first female President, for a second term. Ms. Von der Leyen, of the centre-right European People’s Party (EPP), won by a clear majority of 40 votes unlike the razor-thin nine vote margin she secured in 2019.

EC President chosen:

The selection of the EC President entails a two-stage process in consonance with the results of the parliamentary polls.
The candidate is initially proposed and elected by the European Council — comprising the leaders of the EU’s 27 member countries — and subsequently put to a secret ballot in parliament.
Von der Leyen’s candidature was not unanimous.
The European Conservatives and Reformists (ECR), the far-right caucus Ms. Meloni heads, had for a short time managed to muster the numbers to be counted the third largest group in the legislature.
Italy, moreover, is one of the EU’s six founder members and the bloc’s third largest economy.

Vote in parliament:

The ripples from Ms. Meloni’s abstention in the Council were felt across the board, giving momentary pause for Ms. Von der Leyen’s prospects for automatic reinstatement by the legislature.
There were even murmurs of the Council calling for a possible second vote in case parliament rejected her appointment.
A more potent threat facing EU centrists is the newly launched Eurosceptic and anti-immigrant Patriots for Europe group, which has overtaken the ECR and is now the third largest bloc in parliament.

European Commission

The European Commission is the EU’s executive body.
It represents the interests of the European Union as a whole (not the interests of individual countries).
While the European Council has no formal legislative power, it is a strategic body that provides the union with general political directions and priorities, and acts as a collective presidency.
The Commission operates as a cabinet government, with 28 members of the Commission One of the 28 is the Commission President proposed by the European Council and elected by the European Parliament.
The Council then appoints the other 27 members of the Commission in agreement with the nominated President, and the 28 members as a single body is then subject to a vote of approval by the European.