Barroso’s
revolving door scandal must bring tougher rules
By Vicky Cann |
Alter-EU
29-8-2016
If the Goldman Sachs
appointment of ex-European Commission president Barroso does not push
the Commission to crack down on the ever turning revolving door,
nothing will, writes Vicky Cann on behalf of ALTER-EU.
The Alliance for
Lobbying Transparency and Ethics Regulation (ALTER-EU) is a coalition
of more than 200 public interest groups and trade unions promoting
democracy in EU decision-making.
When investment bank
Goldman Sachs announced its recruitment of former Commission
president José Manuel Barroso as new chairman and adviser back in
July, even the most seasoned Brussels bubble veterans were left in
disbelief. This latest, and arguably most shameless, revolving door
scandal once again illustrates the need to overhaul Brussels’
revolving door rules and culture.
Over 60,000 people
from across Europe have already signed a petition set up by the
Alliance for Lobbying Transparency and Ethics Regulation (ALTER-EU)
and the European campaigning organisation WeMove.EU. And we don’t
stand alone. French European affairs minister Harlem Désir called
the Goldman Sachs move “scandalous” and French President François
Hollande said it was “morally unacceptable”.
Meanwhile, dozens of
MEPs have signed an open letter to current Commission President
Jean-Claude Juncker calling for action; another group of MEPs has
written to the European Ombudsman to ask her to investigate this
case; and the Ombudsman herself has questioned whether current
revolving door rules are sufficient to protect the public interest.
Importantly, and tellingly, tens of thousands of people have joined
disgruntled staff from the EU institutions in criticising
“irresponsible revolving-door practices, which are highly damaging
to the EU institutions”.
Barroso’s
revolving door move highlights the weakness of current rules for
former commissioners – while his appointment by the banking giant
has caused much outrage, no rules have apparently been broken. This
is a clear indication for the need to thoroughly revise revolving
door regulations.
We consider that a
former Commission president joining an employer like Goldman Sachs is
incompatible with former commissioners’ ongoing duty to behave with
“integrity and discretion” when accepting new roles, as set out
in EU treaty article 245. In our view, Goldman Sachs is implicated
too strongly in the global financial crisis and has lobbied too
voraciously against financial regulation to be a suitable employer
for a former EU leader.
Goldman Sachs is a
very active EU lobby actor, who declares over €1million annual
lobby spend and has had at least 23 high-level meetings with the
Commission since December 2014. This level of Commission access is
impressive and the bank can boast of recent meetings with at least
seven commissioners. It is also a member of many lobby groups,
including the International Swaps and Derivatives Association (ISDA).
In 2010, Goldman Sachs and ISDA received the dubious honour of being
named Worst EU Lobbyists of the year, nominated for their aggressive
lobbying to defend their ‘financial weapons of mass destruction’
– derivatives.
Our petition urges
Juncker to immediately review the revolving door rules for EU
commissioners once they’ve left office, banning them for at least
three years from any job that provokes a conflict of interest,
including all direct or indirect EU lobbying. Juncker should also set
up a professional, transparent and fully independent ethics committee
to authorise roles and apply sanctions if rules are broken. As for
the current Barroso case, the Commission should use its leverage from
the treaty and raise a case in the Court of Justice seeking to remove
Barroso’s entitlement to an EU pension.
After all, this is
not the only problematic revolving door move that we have seen by
former members of the Barroso II Commission who left office in Autumn
2014. Within months of leaving office, one third of these
ex-commissioners had taken roles with strong corporate links.
But it has now
become clear that those wishing to take on the most controversial new
jobs waited until they were free of any revolving door rules, which
currently only apply for 18 months from the end of a commissioner’s
term.
Since May 2016,
former trade commissioner Karel De Gucht has joined the board of
mining giant Arcelor Mittal, while former digital agenda commissioner
Neelie Kroes has joined the boards of tech firms Uber and Salesforce
– the latter even going back on her own public promise from years
before that she would never take on another business role.
While these cases
may have been less high-profile than Barroso’s Goldman Sachs move,
the risks they pose to the public interest and the “integrity” of
the EU institutions as required by EU treaty article 245 are
similarly alarming.
Early on, soon after
the Goldman Sachs story broke, Juncker’s press spokesman ruled out
any revision of the Code of Conduct for Commissioners containing the
revolving door rules. Hopefully, the public outrage which has built
up over the summer break will force a change of heart.
The most shameless
revolving door scandal in the EU’s recent history cannot be
ignored and neither can the calls of citizens and MEPs for former EU
officials to be held accountable.
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