EU institutions at odds over lobbying transparency

Alexander_Stubb.jpg

Anti-Fraud Commissioner Siim Kallas said the Commission would go ahead with creating its own register of lobbyists, with or without Parliament on board, amid claims from MEP Alexander Stubb that a common approach would be “impractical”.

Mr. Stubb admitted that he has yet to decide on whether or not his report will recommend making the register compulsory, adding that he is “open to lobbying on that question”. However, he stressed that “all lobbyists are created equal and have to be treated equally”. 

He outlined other key issues to be decided upon, including the extent of financial disclosure required, the precise definition of a lobbyist, the type of organisation to be included on the register, and whether there would be a common register for both Parliament and the Commission. 

The Commission favours the inclusion of financial disclosure of lobbying activities in the transparency initiative, and yesterday Kallas called upon Parliament to back this plan. 

Kallas also indicated that he favoured an interconnection between the two institutions’ registers, as providing the same information twice would be “silly”. 

However, he added that the Commission already has a long list of participants for its own register and will proceed with one “for sure”, whether or not an agreement can be reached with the Parliament. 

Mr. Stubb warned that creating a common, mandatory register between the Parliament and the Commission, governed by a single code of conduct, may be impractical due to the “different procedures” used by each institution. 

Despite this scepticism, he reflected that if it could be made to work in practice, then “it might not be such a bad idea after all”. 

He said that he was “open” on the question of whether the register should be voluntary or mandatory, and although sympathetic to a mandatory register, he said he was “not sure whether it will work in practice”. 

The Commission has said that upon its launch in March 2008, the system will be voluntary, but reiterated that this would be subject to a review after a period of one year. 

If insufficient numbers of lobbyists had signed up after this time, then it would consider making the register mandatory in spring 2009 (EURACTIV 05/09/07). 

Meanwhile, concerns were raised that exempting legal firms working on state aid cases from the register for confidentiality reasons would result in lobbyists and consultancies attempting to reclassify themselves as legal firms. 

Earlier, Kristian Schmidt, Kallas’ deputy head of cabinet, said that a distinction will be made between lawyers’ lobbying and legal-representation activities, which are covered by confidentiality. “If a law firm is representing a client in a cartel case or a client before the Court of Justice, obviously that work is not covered by the register, and we will say so very clearly”, he said (EURACTIV 05/09/07). 

Read more with Euractiv

Subscribe now to our newsletter EU Elections Decoded

José Lalloum of the European Public Affairs Consultancy Organisation (EPACA) said that the best way forward is "a common, voluntary code of conduct". 

However, he said that a mandatory system would be necessary if the register was to include financial disclosure, to which EPACA is "not opposed".  

But he called for a full impact assessment and proper consultation on the implications of financial disclosure to be carried out before this is introduced on a mandatory basis. 

Jim Murray of the consumer organisation BEUC strongly supported Kallas’ proposal, saying that "financial disclosure and mandatory reporting are essential in public discourse". BEUC would have preferred a mandatory system but will accept a voluntary one providing there are "clear incentives and advantages in registering", he added. 

He said that disclosure of funding sources was essential, "otherwise NGOs may be sent up as fronts for industrial interests", while excluding the lobbying activities of law firms would be an "abuse of the lawyer-client privelege", he warned. 

Murray called for a code of conduct and a system to resolve disputes to be introduced, and said that those lobbyists who refuse to register voluntarily should be "refused access to the Parliament". 

Thomas Tindemans of the Council of Bars and Law Societies of Europe (CCBE) warned against creating different categories of access to public institutions such as those of the EU, and expressed concern that a public register could conflict with national confidentiality laws, saying "it is important not to create conflicting jurisdictions". 

He said that public disclosure of a lawyer's clients would have to be subject to client approval, and cited Commission state aid cases as a situation in which confidentiality would be required. 

Lyn Trytsman-Gray of the Society of European Affairs Professionals (SEAP) said that her organisation was "comfortable" with voluntary registration, and called for all groups, such as regional representations, to be included. The issue of financial disclosure remains "problematic", she added. 

SEAP, which counts individual lobbyists among its members rather than companies themselves, supports the introduction of a common register for all institutions and the creation of a public register of documents. 

Erik Wesselius of Corporate Europe Observatory said that a voluntary register is "a good first step towards transparency, but it is way too small". 

He nevertheless recommended that Parliament endorse it for now and called it to be reviewed in a year's time, when a mandatory register could be introduced. 

On financial disclosure, he said that "annual figures on lobbying expenses and income" would be enough, but that "precise consultancy fees" were not needed.  

Craig Holman of Public Citizen, Washington, DC, said that a voluntary register will not work, because "those who do not want to register will be the ones you need to do so". He insisted that a mandatory register is "not a bureaucratic nightmare". 

He pointed out that in the US, a lobbyist is defined according to receipt of financial backing, saying that this definition does not include private individuals exercising their freedom of speech. 

Paul de Clerck of ALTER-EU said that "a lobbying database with financial disclosure is essential", and thinks that "only a mandatory system will work". He recommended that Parliament call on the Commission to "define criteria for its voluntary system". 

He described Kallas' proposal as "very light compared to the US system", adding that compliance should be "no problem". 

Philippe de Buck of BusinessEurope said that any Commission action should be under the 'Better Regulation' framework, and asked it to explain the implications of registering on the likelihood of being consulted by EU institutions. He warned that the register would create issues of business confidentiality, and asked for clarification of the sanctions to be introduced for non-compliance. 

Kallas was speaking at a European Parliament workshop entitled "Lobbying the EU" on 8 October, organised by MEP and rapporteur on the transparency initiative Alexander Stubb (EPP-ED). 

The workshop included a roundtable discussion, which brought together representatives of the Commission, lobbyists, business representatives and other stakeholders to discuss the transparency initiative, originally launched in 2005. 

  • 8 Oct. 2007: Parliament workshop on 'Lobbying in the EU'. 
  • Dec. 2007: Vote on Mr Stubb's report in Parliament's constitutional affairs committee. 
  • Jan. 2008: Vote on report in plenary. 
  • Spring 2008: Implementation of Commission proposal on transparency. 
  • Spring 2009: Evaluation of transparency initiative and possible introduction of compulsory registration. 

Subscribe to our newsletters

Subscribe