Does business interfere too much in EU policymaking?

Civil society groups are accusing the Commission of being steered by business interests while companies feel the EU is still not doing enough for them.

Civil society groups, represented by the Alliance for Lobbying Transparency and Ethics Regulation at the EU (ALTER-EU) and the Seattle to Brussels Network (S2B), presented the results of a report, on 16 October 2006, that aims to show corporate lobbyists have excessive influence over EU policymaking – especially over its trade agenda – and that this influence has a negative impact on social justice, the environment and the fight against poverty. 

However, meeting for the annual UNICE Day on 17 October, representatives of European companies will tell Commissioners that they must listen more to the voice of business when outlining EU policies.

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UNICE stresses that companies are working for the benefit of Europe by remaining competitive, innovating, providing jobs and training and increasing the wealth of regions in which they operate. In exchange, it says, companies expect European decisions that strengthen rather than hamper their position in increasingly global competition. 

UNICE President Ernest-Antoine Seillière said: “We are carrying a social system that is unique in the world…and we work with an environment policy that is much stricter than in the rest of the world…We are proud of this but it carries a cost. What we expect in exchange is good governance on behalf of the EU.” 

Presenting the results of a perception poll based on a panel of 320 companies, UNICE Secretary-General Philippe de Buck pointed out that more than 40% of companies feel that the EU does not listen enough to the voice of business. 

UNICE therefore intends to increase pressure on the EU to ensure that both its internal and external policies are business-orientated. This means pushing for labour market and social system reforms, enforcing the internal market, fighting protectionism and ensuring better access to markets abroad. 

Seillière added: “Up till now, the influence of business in Europe has been rather low and we intend to increase it as much as possible.” 

Member of S2B and author of the report “Corporate Power over EU Trade Policy” Mirjam Van Der Stichele said that it was time to put an end to business’s privileged access to the Commission. She pointed out that even the European Parliament does not have a mandate to influence the EU’s trade policy but that business seems to be able to influence the Commission’s position “whenever it likes”. 

Her report states that by seeking to ensure the external competitiveness of its industry at all costs, the EU has undermined the Doha Development Round, as well as its internal objectives of job creation, social cohesion and environmental protection. 

Van Der Stichele noted: “Although businesses often integrate CSR into their strategies, if one really looks at what’s happening on the ground, I don’t think you can say that they are that interested in the environment or even in job creation.” She added: “What companies want is more market access,” pointing to how the EU was pushed by businesses to force developing countries into giving more market access for industrial goods during the WTO negotiations - despite the original mandate of the Doha Round stating that developing countries should not have to make symmetrical concessions to developed countries. 

Director of Greenpeace EU and member of ALTER-EU Jorgo Riss stressed that a crucial step in tackling this excessive corporate influence is to increase transparency in EU lobbying by making it mandatory for all lobbies to register themselves and to disclose financial data. He said it is probably normal that 40% of companies feel they are not listened to by the EU because “this Commission has a selective ear…it listens mainly to the big multinationals”. 

In response to these claims, Ernest-Antoine Seillière said that he believed UNICE presents a balanced approach but added: “We have no other mission than to contribute to increasing growth and jobs in Europe.” 

Philippe de Buck added that when they ask for more access to foreign markets, businesses are not demanding that the EU force open the doors to the poorest developing countries, such as Africa. They are simply seeking fair competition with large emerging economies. “Anything that will harm developing countries, we are against,” he stressed, adding that UNICE supports an increase in global trade and that a 1% increase for Africa would amount to more than all aid contributions combined. 

Lobbying plays an important part in decision-making and, with around 15,000 lobbyists in Brussels (consultants, lawyers, trade associations, corporations, NGOs), the Commission decided, in May 2006, to present a 'Green Paper on a European Transparency initiative' to launch a debate about what citizens are entitled to know about who the lobbyists are and how much they are spending.

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