IMPACT OF THE CRISIS ON THE LOBBYING PRACTICES IN BRUSSELS

The major consequence of the crisis is that it has put financial questions at the heart of European politics. Lobbyists are being forced to adjust their positions as circumstances change. The crisis has led the Brussels offices of many companies to take more an of an interest in financial matters than they did in the past. Businesses are seeking to defend their interests as borrowers.

The financial crisis has pushed many companies to pursue greater cost-efficiencies. External costs like membership dues in associations have come under more scrutiny. There is pressure to do more and better with fewer resources and to show better value to members. People’s time is also increasingly under pressure – many companies can no longer participate in the day-to-day work of trade associations in the same way they used to.

Associations need to improve value for money for their members, increase the relevance of their services, increase their status and influence with the EU and other key stakeholders, improve their organizational capability and performance.

As part of the professionalisation process, associations are outsourcing selected competencies. These differ and range widely per association. Recognizing the benefits of external specialists in a wider range of areas, some outsource basic secretariat functions, whilst others outsource the whole membership management to specialized association management companies. Whether in coalition or operating alone, associations are using more technical and regulatory specialists or lobbying and communications experts. As many associations have realized, the benefit is not just specialist expertise resulting in increased impact, but reduced staff and other costs coupled with greater efficiency and flexibility.  

A new organization ‘Finance Watch’ backed by 40 European groups including trade unions, consumer protection groups, retail investor associations, housing associations, foundations,  think tanks, NGOs and other organizations established to serve civil society  has been created to make financial markets more transparent and influence future legislation so that it serves the needs of society rather than the financial industry. The objective is to develop a counter-expertise on activities carried out on financial markets by major operators (banks, insurance companies, hedge funds) and to convey effectively this analysis to the EU institutions and the media.

Finance Watch still has a small budget of only €1 million ($1.4 million) derived from member dues and donations. But the various EU institutions are now considering injecting another million euros into the venture. Even then, it will still be difficult to become a counterweight to what is probably the richest and most powerful economic sector of all, whose 700 lobbyists are backed by an estimated €400 million in funding. Financial watch is not an anti-bank group. It only wants to establish a balanced debate that includes not only the players, but also those affected by their actions.