{"id":57236,"date":"2018-01-09T05:24:56","date_gmt":"2018-01-09T05:24:56","guid":{"rendered":"http:\/\/www.bnreport.com\/big-east-west-skew-in-record-eu-lobbying-bonanza\/"},"modified":"2018-01-09T05:24:56","modified_gmt":"2018-01-09T05:24:56","slug":"big-east-west-skew-in-record-eu-lobbying-bonanza","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/big-east-west-skew-in-record-eu-lobbying-bonanza\/","title":{"rendered":"Big East-West skew in record EU lobbying bonanza"},"content":{"rendered":"

Lobbyists spent a record \u20ac1.7 billion influencing the European institutions in 2016, with 95 percent of that figure coming from countries that joined the bloc before 2004, according to an analysis of data in the EU\u2019s transparency register carried out by POLITICO.<\/p>\n

At a time when many Central and Eastern European countries complain of a pro-Western bias in lawmaking and in the apportioning of EU benefits \u2014 such as the medicines and banking agencies moving from London after Brexit \u2014 the data reflect the dominance of firms, think tanks and NGOs headquartered in older member countries but with powerful lobbying operations in Brussels.<\/p>\n

\u201cWe see that the odds are not exactly in our favor,\u201d said Jan N\u011bmec, who is setting up a Brussels-based trade association representing Czech and Slovak transport associations in response to the dominance of trucking lobbyists from Western countries in the Brussels debate about the rights of posted workers \u2014 people who move to work in another EU country temporarily.<\/p>\n

\u201cIf you look at the contact in the [European] Parliament, I have to say the Western view is prevailing there \u2026 They know how to lobby, they have resources, they are more experienced,\u201d he said.<\/p>\n

Influencers based in Belgium naturally top the list with spending of \u20ac427 million because of the preponderance of Brussels-based lobbying operations. Next on the list are Germany-based institutions, who spent \u20ac181 million in the last year, followed by the U.K. at \u20ac154 million and France at \u20ac106 million. By contrast, Poland, which has the EU\u2019s sixth largest population, came in behind Austria, Denmark and Portugal in terms of the amount of money spent by its lobbyists. With Belgium in the mix, 95 percent of the total lobbying spend originates from old Europe, but even excluding that country, the disparity is huge with 93 percent coming from old Europe and 7 percent from countries that joined in 2004 or later.<\/p>\n

\u201cIt\u2019s inevitable that companies and organizations with greater resources \u2014 most of which come from the older member states \u2014 are able to invest the most in seeking to influence policy processes,\u201d said Arnaldo Abruzzini, CEO of Eurochambres, a trade association representing 20 million businesses<\/a> in 43 countries that spent up to \u20ac1.6 million last year on lobbying in Brussels.<\/p>\n

Some of the disparity may be a reflection of cultural differences between nations. \u201cCountries have different cultures and some countries like the U.K. have a long tradition of lobbying, while other countries know it less and influencing politics is done differently,\u201d said Transparency International EU\u2019s Daniel Freund, adding that the activity tends to be more developed in liberal democracies.<\/p>\n

The EU\u2019s transparency register was set up almost a decade ago and is operated jointly by the European Parliament and Commission. It is used by firms, associations and NGOs to officially record how much they are spending on lobbying the EU institutions, as well as state how many people are lobbying for them and which areas of legislation they seek to influence.<\/p>\n

The number of lobbying entities on the register has multiplied by 35 since its introduction, with big upticks in the past few years. This is likely due to lobbying organizations acting on draft proposals to make signing up to the register compulsory in order to gain access to the EU institutions. Currently, lobbyists can only access senior officials in the Commission if they are on the register, but that does not apply to lobbyists seeking to influence MEPs and Council officials.<\/p>\n

Financial disclosure on the transparency register \u2014 as well as all other information provided \u2014 is voluntary, and there\u2019s no external audit to check whether companies have understood what is being asked and whether their entries are accurate.<\/p>\n

Over the last two years, POLITICO has vetted financial entries from entities listed as high spenders in the register and adjusted any outlying figures based on research into each lobbying entity\u2019s true effort (some firms record their total lobbying spend in the register rather than the amount spent on EU lobbying). By systematically gathering information from the database, the analysis also gives a deep insight into the lobbying environment in Brussels. The research, based on data disclosed on the register as of summer 2017, put the amount spent lobbying in 2016 close to \u20ac1.7 billion. The unvetted sum is much higher.<\/p>\n

The figure suggests a lobbying bonanza in Europe\u2019s capital that is now approaching spending in Washington. According to the Center for Responsive Politics, a U.S. transparency NGO, a total of $3.15 billion<\/a> (\u20ac2.7 billion) was spent on lobbying the U.S. capital in 2016.<\/p>\n

Money talks<\/h3>\n

The top 20 big spenders include pan-EU trade associations like the European Chemical Industry Council \u2014 which tops the list at \u20ac12.1 million \u2014 and BusinessEurope (\u20ac4.2 million). Also among the big money are consulting firms like FleishmanHillard (\u20ac7 million), Burson Marsteller (\u20ac4.7 million) and Interel (\u20ac5 million). The figures are for the rounded upper limit of a range given by companies and organizations in the transparency register.<\/p>\n

NGOs complain that they are massively outspent by corporate interests when it comes to influencing legislation. \u201cIt is no secret that corporate interest representatives in Brussels outweigh civil society organizations both in number and in the financial resources they have for lobbying EU decision-makers, which has dire consequences for public interest policymaking,\u201d said Vicky Cann, a campaigner at Corporate Europe Observatory (CEO), an NGO campaigning against corporate capture in Brussels.<\/p>\n

POLITICO\u2019s corrected data bear this out. Sixty-six percent of lobbying spend comes either from companies themselves or law firms and consultancies working for them. NGO spending accounts for only 19 percent of the total, although within that category some organizations also sometimes share the interests of corporates \u2014 for example, the European Digital Rights Initiative, which receives funding from companies like Google and Microsoft or IFOAM-Organics International, which is backed by the organics industry.The rest is made up of research and academic institutions and regional organizations.<\/p>\n

Some of the top spenders are trade associations representing financial services sectors, like the Association for Financial Markets in Europe (\u20ac4.7 million), Insurance Europe (\u20ac7 million) and the European Banking Federation (\u20ac4.2 million). Individual firms like Deutsche Bank, Google, Microsoft and extractive industry firms ExxonMobil and Shell also feature in the top 20 lobbyists.<\/p>\n

\u201cIf you compare all the biggest philanthropies \u2026 it\u2019s nothing compared to what states have available as money, and it\u2019s nothing compared to corporates,\u201d said Inge Wachsmann, program manager at the Swiss-registered Charles L\u00e9opold Mayer Foundation, which donates around \u20ac9 million a year to NGOs such as CEO and Finance Watch, which campaigns on financial services regulation.<\/p>\n

<\/p>\n

The transparency register records how much firms are spending on lobbying the EU institutions | Valentina Petrova\/AFP via Getty Images<\/p>\n

But it is the extent of the disparity between East and West that will likely be most surprising.<\/p>\n

For example, firms and NGOs from Morocco, which is currently lobbying the EU institutions on an update to its lucrative trade agreement with the bloc, spent more money than seven EU member countries this year. Kenyan organizations spent more on lobbying than four EU countries (Slovenia, Latvia, Croatia and Estonia).<\/p>\n

\u201cWe need to be more present here,\u201d said Kinga Grafa, head of the Brussels office of Lewiatan, Poland\u2019s 18-year-old business lobby, adding that there was a growing recognition by Polish industry that having a presence in Brussels mattered.<\/p>\n

Grafa is one of the association\u2019s two staffers based in Lewiatan\u2019s Brussels office, and one of four on staff who lobby the EU institutions, with an annual spend of up to \u20ac200,000. In contrast, the Confederation of Danish Industry discloses 12 individuals lobbying the EU institutions with an annual spend of up to \u20ac1.2 million.<\/p>\n

\u201cGovernment advocacy and lobbying is still not rooted in our political systems,\u201d said Liberal Czech MEP Martina Dlabajov\u00e1, explaining why so few firms spend money lobbying in Brussels. \u201cWe still didn\u2019t get that negotiating and transferring information to policymakers is crucial if you want to make your voice heard.\u201d<\/p>\n

\n

\u201cPolicy business is a new kind of business for [companies in the Western Balkans]\u201d \u2014 Natko Vlahovic, founder of a Croatian consultancy<\/em><\/p>\n<\/blockquote>\n

And the lobbying imbalance extends beyond business. \u201cIt\u2019s a fact that trade unions \u2014 and presumably NGOs \u2014 in many of the newer member states have fewer resources than those in the older, Western European member states,\u201d said Julian Scola, a spokesman for the European Trade Union Confederation, which spends up to \u20ac1.2 million on lobbying the institutions.<\/p>\n

But for associations representing smaller EU countries that joined the bloc in 2004 or later, a significant part of the challenge is waking up their business communities to the threats \u2014 and opportunities \u2014 presented by European law.<\/p>\n

\u201cIt has been a very steady learning curve among Lithuanian businesses to really take developments in Brussels seriously,\u201d said Tomas Vasilevskis, the director of the Lithuanian Confederation of Industrialists in Brussels, adding that there had been a big uptick in interest in \u201cthe last three or four years.\u201d<\/p>\n

For companies in the Western Balkans, they simply \u201cdo not understand to what extent Brussels impacts their policy and regulatory environments,\u201d according to Natko Vlahovic, founder of Vlahovic Group, a Croatian consultancy that recently opened an office in Brussels. \u201cPolicy business is a new kind of business for them,\u201d he added.<\/p>\n

CORRECTION: <\/em>An earlier version of this article misstated the trade association being set up in Brussels by Jan N\u011bmec. The association will represent Czech and Slovak transport associations.<\/em><\/p>\n

Original Article<\/a><\/p>\n

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Politico<\/h5>\n

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