Corporate Europe Observatory

Exposing the power of corporate lobbying in the EU

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Addicted to risk

The banking lobby in the European Union is waging a successful battle against regulation that will undercut international Basel rules. They’re succeeding in putting competition and the right to risky bets before concerns for financial stability.

This year the European Union is expected to adopt new rules on banking. In 2008 when the financial crisis broke, legislators promised bold reforms and public expectation was high. In view of the dire consequences of the collapse of big banks across Europe, now was the time to make up for the omissions of the past and fix the rules to avoid speculative excesses.

Today, more than three years later, those new rules are in the pipeline, but few expect them to be much of an advance. At the international level, the banking lobby watered down proposals for international rules, – called Basel III – and these showed so little improvement that it was hard to imagine the European Union could go lower.

Even so, thanks in part to lobbying by the banks, the proposal tabled by the Commission and discussed by the European Parliament and in the Council at the time of writing, is indeed weaker, driving standards lower than the global level.

With a draft heavily influenced by the banks, any fight for improvements will be an up-hill battle. And in this case it’s hard to imagine the outcome will even live up to weak international standards. It is high time to ask whether banks should be responsible for setting the standards for banks, and whether indeed they should be allowed to set the terms for the debate on banking regulation.

Read more in Corporate Europe Observatory's report "Addicted to risk" (download pdf below).

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In the run up to the UK referendum on EU membership on 23 June, Corporate Europe Observatory has tabled a series of freedom of information requests to find out how UK finance lobbies have been influencing the referendum negotiations and the Capital Markets Union. But the Brexit-Bremain referendum seems to be a freedom of information black hole.

The UK financial sector spends at least €34 million per year on lobbying in Brussels and employs more than 140 lobbyists to influence EU policy-making, according to a study published today by Corporate Europe Observatory. From December 2014 to May 2016, UK financial sector lobbyists had 228 lobby encounters with elite European Commission officials.

This summer Greece's financial authorities fined 20 hedge funds for speculating against the Greek economy. Now, the main global lobby group for hedge funds is trying to tweak the EU's rules so they can have a free play in the future.

Murky channels for corporate influence in the European Parliament.

Biodiversity collapse, the future of agriculture, politics versus science, EU States and the European Commission shifting blame on each other, industry's capture of the regulatory process through data secrecy, a Commissioner caught between Juncker, EU States, lobby groups, and his own services... The glyphosate saga, coming to an end this week with the European Commission's decision to extend its licence, has been an entry point into many broader problems. Overview.

The official EU assessment of glyphosate was based on unpublished studies owned by industry. Seven months later, the pesticide industry still fights disclosure and, so far, successfully. We obtained a copy of their arguments.

While CEO is not taking a position on the UK referendum, many of our publications are relevant to those who will have a vote, or those who are following the debate.

The current struggle in France over labour law reforms is not just between the Government and trade unions – a European battle is waged. The attacks on social rights stem in no small part from the web of EU-rules dubbed 'economic governance', invented to impose austerity policies on member states.

 
 
 
 
 
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The corporate lobby tour