Select Committee on European Scrutiny Thirty-Second Report


4 European Transparency

(27508)

9412/06

COM(06) 194

Green Paper on the European Transparency Initiative

Legal base
Document originated3 May 2006
Deposited in Parliament19 May 2006
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 15 June 2006
Previous Committee ReportNone
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested. Relevant to the debate on "A Citizen's Agenda — Delivering results for Europe"

Background

4.1 The Commission says that, with a commitment to widen opportunities for stakeholders to participate actively in EU policy-shaping as one of the "Strategic Objectives 2005-2009", it launched a "Partnership for European Renewal".[10] This emphasised that inherent in the idea of partnership is consultation and participation and stressed the importance of a high level of transparency to ensure that the Union is open to public scrutiny and accountable for its work. The Commission says "high standards of transparency are part of the legitimacy of any modern administration" and that "the European public is entitled to expect efficient, accountable and service-minded public institutions and that the power and resources entrusted to political and public bodies are handled with care and never abused for personal gain". Against this background, the Commission launched the "European Transparency Initiative" (ETI) in November 2005.[11]

The Green Paper

4.2 The paper is helpfully summarised in his 15 May Explanatory Memorandum by the Minister for Europe (Mr Geoffrey Hoon) as follows:

"The report identifies three key components of the ETI which should be driven forward. Firstly, the need for a more structured framework for the activities of interest representatives (lobbyists); secondly, feedback on the Commission's minimum standards for consultation;[12] and finally the mandatory disclosure of information about the beneficiaries of EU funds under shared management.

"The report outlines the basic framework on which the relationship between the EU institutions and lobbyists should be built. The report describes the following components as essential: lobbying to be viewed as a legitimate part of the democratic system; lobbyists can bring important issues to the attention of the European institutions; undue influence should not be exerted on European institutions; it must be clear to the general public which input lobbyists provide, who they represent, what their mission is and how they are funded; European institutions have the right to hold internal deliberations without interference from outside interests; and measures in the field of transparency must be effective and proportionate.

"The media, academia and interested representatives have raised concerns about current lobbying practices. Under the current system the Commission and the European Parliament have two different systems for lobbyists. The Commission has a voluntary database (CONECCS)[13] on European civil society organisations (this is a wide-ranging definition and includes trade unions and employers' federations, NGO's, consumer groups, organisations representing social and economic players, charities and community based organisations). CONECCS is used as an information source for Commission departments and the general public but there is no requirement nor incentive or disincentive for organisations to register.

"The European Parliament has an accreditation system for all needing frequent access to the institution. A register of accredited lobbyists is published on their website and provides their names and states the organisations they represent but gives no indication of the interests for which the lobbyist is acting.

"The traditional concept at European level has been to put the onus on the ethical behaviour of the representatives of the institutions themselves rather than laying down additional legally binding rules on the conduct of lobbyists. Therefore Members of the Commission and the staff of European institutions are bound by strict rules ensuring their impartiality. These rules are enforced by special monitoring and sanction mechanisms.[14]

"The paper outlines the Commission's framework for a new system to ensure greater transparency. This consists of:

"A voluntary registration system: This would be run by the Commission, with clear incentives for lobbyists to register. The incentives would include automatic alerts of consultations on issues of known interest to the lobbyists. The Commission does not consider a compulsory registration system would be an appropriate option, however the report does propose that a review should be conducted to examine whether self-regulation has worked.

"A common code of conduct: The report proposes that the code should be developed by the lobbying profession.

"A system of monitoring and sanctions: The report proposes that they should be applied in all cases of incorrect registration and/or breach of the code of conduct.

"The report outlines the need to raise awareness of the use of EU money, notably by explaining better what Europe does and why it matters. The Commission is responsible for implementing the EU budget. The Commission already provides information for the EU-funded policies which it manages centrally and directly. However, the majority of the EU budget is spent in partnership with the Member States ("shared management"). The common agricultural and fisheries policies, the Structural Funds, the Cohesion Fund and the European Refugees Fund are implemented under this shared management formula which makes up 75.7% of the EU budget (€86.6 billion a year).

"EU citizens often turn to the Commission for information on the use of the EU budget if the information is not disclosed at a regional or national level. However, the Commission either does not have the information or does not have the right to [hand it out] without the prior agreement of the Member State concerned.

"In order to promote transparency the report proposes a new EU legal framework, directly applicable in all Member States, to ensure a consistent approach to all beneficiaries of EU funds."

The Government's view

4.3 The Minister says that he "supports the broad thrust of this Green Paper and intends to contribute to the consultation process". He asserts that the UK has a good record on EU transparency — "for example, in the case of the Common Agricultural Policy, the UK already provides information on beneficiaries of EU funding" — and that "the UK has for some time been pushing a policy of transparency regarding beneficiaries of EU funding".

4.4 He notes that the consultation period for the Green Paper opened on 3 May and closes on 31 August, and that the Cabinet Office will lead on HM Government's contribution to the consultation document."

Conclusion

4.5 There is much debate in Europe about "the democratic deficit", integrity and the need for greater citizen participation and transparency in formulating policy. Grouping together around a common concern to exercise influence, and employing persuasive and well-placed agents, is as old as organised society. Enabling these forces to interact appropriately with politicians and officials is central to rebuilding the trust that so many of Europe's citizens appear to have lost in the policy-making process and in European institutions.

4.6 Although the Minister's EM is significantly better in explaining the Green Paper than his departmental colleague's in explaining the Commission's proposals on "Europe in the World" (which we examine elsewhere in this Report),[15] it is no better explaining the Government's view on the proposals therein. We do not consider that support for "the broad thrust of this Green Paper" is adequate, and would instead like to know what the Minister thinks of the proposals, and what reply the Government plans to offer. To this end, we attach at Annex 3 the basis upon which the Commission is carrying out the next stage of consultation.

4.7 Until then, we shall keep the document under scrutiny, and consider it relevant to the debate we have already recommended on the Commission Communication on "the Citizens' Agenda".


10   COM(05) 12. Back

11   SEC(05) 1300. Back

12   The Commission attaches its "General Principles and minimum standards in detail", which is annexed to this Report (Annex 2). Back

13   CONECCS - Consultation, the European Commission and Civil Society. Back

14   The Commission attaches an annex on Integrity: the EC Treaty and Staff Regulations, which is annexed to this Report (Annex 1). Back

15   See para 5 of this Report. Back


 
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