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!