Lobbying in Europe Hidden Influence, Privileged Access Vienna, 7 May th 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

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)

TI Austria Founded in 2005 Board of Directors: 4 Members Advisory Council: 7 Members 10 active working groups & Projects

Achievements No more „bait feeding“Founding of the Anticorruption Prosecutor‘s OfficeLeniency regulations for key witnessesTransparent waiting lists for operations Guidebook: Curbing Corruption in Development Cooperation (download: )

Achievements 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 parliamentNew political party financing lawsFirst reform of authority to give directives

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!

„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: Publication Regional Report: 15 April 2015 (

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?

European Average % 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?

Some facts… Only 7 out of 19 countries have a dedicated lobbying regulation: Austria, France, Ireland, Lithuania, Poland, Slovenia and the United Kingdom

Some facts… % 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 % 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

Austrian Results: 4th out of 19: Average result of 40%Transparency: 34%Integrity: 42%Equality of Access: 43%

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 AustriaLaw and register came into effect on 1 January

Who can register? A Lobbying Firms B Company Lobbyists C Chambers & Statutory Corporations D Interest Groups, NGOs

And who can‘t? Religious groupsSocial insurance carriersNGOs who don‘t have paid employees for lobbyingPolitical partiesAustrian Associations of Towns/MunicipalitiesLaw Firms (mostly)Anyone who acts by invitation from a government representative

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 noncompliance B – Company Lobbyists Public: Basic data, code of conduct, names of in-house lobbyists Not public: lobbying cost if > € p.A. Sanctions for noncompliance 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

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 registerLegal Footprint – lawmakers must report on meetings/consultations etc.Close loopholes in the lawCooling-off periods before changes from politics into business and vice versa

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

Transparent lobbying can avert this image… source: Thank you!