Lobbying in Europe

Hidden Influence, Privileged Access

Vienna, 7 May 20155th Annual P.A.C.E. meeting

Corruption…

• “Corruption is the abuse of entrusted power for private gain.”

- TI's vision is a world in which government, politics, business, civil society and the daily lives of people are free of corruption

- TI's mission is to work to create change towards a world free of corruption.

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Transparency International

•Founded in 1993 by Peter Eigen

• International Secretariat in Berlin

• National Chapters in more than 100 Countries

•National Chapters work independently and are self-financed

•New Chair Jose Ugaz (Peru)

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TI Austria

• Founded in 2005

• Board of Directors: 4 Members• Advisory Council: 7 Members• 10 active working groups & Projects

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Achievements 2005 - 2015

No more „bait feeding“

Founding of the Anticorruption Prosecutor‘s Office

Leniency regulations for key witnesses

Transparent waiting lists for operations

Guidebook: Curbing Corruption in Development Cooperation (download: www.ti-austria.at/aktivitaeten/ag-entwicklungszusammenarbeit.html )

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Achievements 2005 - 2015

Integrity Pact for the renovation of the Austrian parliament building

Anonymous whistleblowing platform run by Anticorruption Prosecution Office

Anticorruption legislation also applies to members of parliament

New political party financing laws

First reform of authority to give directives

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Lobbying and Corruption

Lobbying is an integral part of a healthy democracy, closely related to universal values such as freedom of speech and the right to petition of government. It has the potential to enhance the quality of decision-making by providing channels for the input of expertise.

BUT: „Lobbying“ has become a buzzword connected with undue influence behind closed doors in public perception!

Unfair and opaque lobbying practices constitute one of the key corruption risks facing Europe!

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„Lifting the Lid on Lobbying“

First comprehensive study of lobbying laws and practices across Europe, conducted by Transparency International

Carried out in 19 EU member states:

• Austria, Bulgaria, Cyprus, Czech Republic, Estonia, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, United Kingdom

Research conducted: March – July 2014

Publication „Lobbying in Austria“: 3 Dec 2014 (english version: http://www.ti-austria.at/forschung-tools/lobbying-in-oesterreich.html)

Publication Regional Report: 15 April 2015 (www.transparency.org)

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Three areas of research

Transparency• Are interactions between lobbyists and public officials

made transparent and open to public scrutiny?

Integrity• Are there clear and enforceable rules on ethical

conduct for both lobbyists and public officials?

Equality of Access• How open is public decision-making to a plurality of

voices representative of a wide range of interests?

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European Average

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31% Average score in 19 EU countries and 3 EU institutions

26% Transparency average

33% Integrity average

33% Equality of Access average

How did the countries score?

Slove

nia

Lith

uani

aUK

Austri

a

Irela

nd

Latvi

a

Nethe

rland

s

Polan

d

Czech

Rep

ublic

Estoni

a

Franc

e

Slova

kia

Bulga

ria

Germ

any

Portu

gal

Spain

Italy

Cypru

s

Hunga

ry0

10

20

30

40

50

60

Total Score in Percent

Total Score in Percent

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Some facts…

Lobbying Regulation

Yes No

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Only 7 out of 19 countries have a dedicated lobbying regulation:

Austria, France, Ireland, Lithuania, Poland, Slovenia and the United Kingdom

Some facts…

Yes No

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58% of EU citizens believe their country‘s government is to a large extent or entirely controlled by a few big interests

(Transparency International Global Corruption Barometer, 2013)

EU Institutions

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36% Average quality of lobbying regulation for the three EU Institutions

53% European Commission

37% European Parliament

19% Council of the EU

TI Key Recommedations:

Ensure information on lobbying activities is published and made

easily accessible to

the public

Create an „ethical firewall“ between

lobbyists and the public

sector (cooling-off

periods)

Promote diverse

participation in public decision-

making from individuals and groups with a

range of perspectives

Ensure rules are enforced and that there are meaingful sanctions for

unethical behaviour

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Austrian Results:

4th out of 19: Average result of 40%

Transparency: 34%

Integrity: 42%

Equality of Access: 43%

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Austria: Lobbying law and register

Introduced as part of the „Transparenzpaket 2012“, that also included changes to Anticorruption law and party financing

In response to „Cash for laws“- scandal and ensuing public outcry

First lobbying law in the history of Austria

Law and register came into effect on 1 January 2013

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Who can register?

A

•Lobbying Firms

B

•Company Lobbyists

C

•Chambers & Statutory Corporations

D

•Interest Groups, NGOs

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And who can‘t?

Religious groups

Social insurance carriers

NGOs who don‘t have paid employees for lobbying

Political parties

Austrian Associations of Towns/Municipalities

Law Firms (mostly)

Anyone who acts by invitation from a government representative

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But even those who do register aren‘t equal…

A – Lobbying Firms

Public: Basic data, code of

conduct, names of lobbyists

Not public: Lobbying job, employer, field

of activity

Sanctions for noncomplian

ce

B – Company Lobbyists

Public: Basic data, code of conduct,

names of in-house lobbyists

Not public: lobbying cost if >100.000€ p.A.

Sanctions for noncomplian

ce

C- Chambers & Statutory

Corporations

Public: Basic data, number of interest

representatives (no names)

Not public: estimated cost

for interest representation

No sanctions

D – Interest Groups, NGOs

Public: Basic data, number of interest

representatives (no names)

Not public: estimated cost

for interest representation

No sanctions

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Key Recommendations for Austria:

The general public needs to have the opportunity to consult the lobbying register to find out who lobbied whom on what behalf

All lobbyists must be required to register; Equal sanctions must be applied to all lobbyists

Establish sufficient control mechanisms for lobbying law and register

Legal Footprint – lawmakers must report on meetings/consultations etc.

Close loopholes in the law

Cooling-off periods before changes from politics into business and vice versa

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TI Key recommendations for Lobbyists:

Foster a culture of integrity among companies and organisations seeking to influence public policy:

• Be aware of and comply with applicable laws, regulations, rules and codes of conduct

• Register in lobbying registers, including those that are voluntary

• Be proactively transparent about your lobbying and other forms of political engagement

• Ensure all lobbying efforts etc are reported as part of annual reporting

• Ensure lobbying is carried out with integrity, do not misrepresent the status or nature of your communications

• Avoid potential conflicts of interest

• Train your employees and representatives on the above measures

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Transparent lobbying can avert this image…

source: www.pixshark.com

Thank you!