Corporate Europe Observatory

Exposing the power of corporate lobbying in the EU

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When big business comes across EU climate targets it instinctively reaches for its big guns, unleashing CEOs and a volley of lobbyists in an attempt to avoid substantial reductions in greenhouse gas emissions. The first six months of 2011 have seen the latest round of this contest, with two policy initiatives re-opening the debate on European reduction targets. A new EP report, calling upon the EU to raise its greenhouse gas emissions reduction target from 20 to 30 per cent, will be voted on at the 23 June plenary session of the European Parliament. This is a step in the right direction, although it still falls well short of what is needed to tackle climate change.

New research by Corporate Europe Observatory (CEO) has found that 11 out of the 20 experts on the European Food Safety Authority (EFSA) panel on food additives (ANS) have a conflict of interest, as defined by the Organisation for Economic Co-operation and Development (OECD).

The Lisbon Treaty, introduced in 2009, substantially increased the Parliament’s legislative power, making MEPs even more attractive to consultancy firms. The Parliament can now accept, amend or reject the content of European legislation that affects every European – making its decision makers worth knowing.

Its new powers mean that greater scrutiny, transparency and accountability are required to minimize any potential conflict of interest and corruption.

Next week, MEPs are due to vote on a report from the Parliament’s international trade committee (INTA) about Europe’s international investment policy – giving guidelines for the rights of foreign investors under future EU trade deals. The vote follows fierce attempts by law firms, industry and member states to enshrine the right of foreign investors to challenge national laws that affect their profits. As a result, European member states could soon find domestic laws challenged by foreign companies – and politicians will have no powers to intervene.

The Euro Pact is a major step towards a corporate model of economic governance in the European Union, which will result in a major attack on social rights and living standards. So far, it looks like the big business lobby is winning the policy battle, at the expense of the rest of society.

Using the pretext of the “euro crisis”, the European Commission and the Council have put forward proposals to give the EU new powers to deal with core welfare issues, including social benefits and wages, under a new technocratic procedure. There is an urgent need for a democratic debate throughout the EU, in particular on alternatives to the austere neoliberal model of ‘economic governance’ that is now being pushed by the Commission and the Council. And it will require a broad-based social struggle to make the alternatives a reality.

A new joint report from Corporate Europe Observatory and India FDI Watch reveals how, in the negotiations for a trade deal between the EU and India, the EU Commission and the Indian government have handed the agenda over to corporate lobby groups. This big-business-first agenda will put at risk the livelihoods of millions of small farmers, street traders and patients. The report shows how negotiators on both sides have entered into a symbiotic working relationship with big corporations and their lobby groups. It shines a light on the dense web of corporate advisory bodies, working groups and secret consultation channels through which business can exercise undue influence over trade-policy making in the EU and India. And it explains the human consequences of the corporate trade agenda in fields such as intellectual property rights, retail, agriculture and manufacturing.
The US investment bank Goldman Sachs is earning a reputation as public enemy no. 1 in the financial world. At the same time the firm is one of the Commission’s favourites when it comes to asking for advice on regulating financial markets . It is high time for the Commission to close the door on Goldman Sachs, this article concludes.
Lobbying for governments in Brussels: a lucrative business still under the radar
This report from Corporate Europe Observatory presents 15 recent examples of governments using lobby consultancies to influence the EU institutions, including Belarus, Botswana, Ethiopia, Jersey, Kazakhstan and Sri Lanka. They all have hired “public affairs” firms in Brussels to try and boost their diplomacy work. Their motives differ, but include polishing their image, gaining political support, securing EU funding or preferential trade treatment, and blocking new EU regulations.

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Corporate Europe Observatory

Corporate Europe Observatory (CEO) is a research and campaign group working to expose and challenge the privileged access and influence enjoyed by corporations and their lobby groups in EU policy making.

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