AMERICAN INFLUENCE IN EU POLITICS

As the European Union has expanded and evolved, Brussels, its de facto capital, has emerged as one of the world’s major hubs for government relations professionals. Just as in Washington, D.C., the only city with more of them,  it is dominated by corporate lobbyists. Many of them come from EU member countries, but they aren’t alone. American interests and corporations are ever-present, with formidable influence even comparable to companies with direct ties to the EU. The influence industry has likely been sprouting in Brussels for quite some time, but recent changes to the EU’s transparency regime have exposed a wealth of new, if still incomplete information, with even more likely to come in the next few years. American companies, as well as consultancies based in the U.S., play a major role in Brussels and hold a sway in Europe that is unmatched by other players in the global economy like China, Japan, India or Brazil. In fact, American companies are among the most engaged, professional and long-established lobbying forces in Europe.

It is easy to assume that American interests would work to exert influence in Brussels. Name a policy area being debated in Europe: tech, tobacco, trade, the list goes on and Americans will show up as major players in the discussion. More generally, American interests are by far the most significant non-EU voices and have a larger presence in Brussels than all but the major European economies overall. American companies have a long history of lobbying at home that may have allowed them to confidently become major players in Brussels. Organizations registered in the United States have had more meetings with members of the European Commission since the end of December 2014 than all but seven other countries. In terms of meetings held with the Commission, organizations registered in the United States or directly representing U.S. interests took five of the top 25, seven of the top 50, and 14 of the top 100 spots since reporting started last December 2014. Meanwhile, only one Chinese group cracked the top 100, and India, Japan, Brazil, Russia and other major non-EU nations went unrepresented entirely. American organizations weigh in on a wide range of topics in Europe. Particularly active are technology companies and the financial services industry. A number of American NGOs ranging from Human Rights Watch to the Center for Democracy and Technology exert influence in EU affairs as well. When looking at the 10 biggest spending corporate interests in European politics, the list is dominated by American companies.  American companies are spending huge sums to influence European Policy. At least 14 American tied organizations reported over €1,00,000 in spending during the second half of 2014 and first half of 2015. They were led by Microsoft and Google at €4.25 million and €3.5 million respectively.  Americans don’t dominate quite so much when it comes to meetings with high-level Commission officials since the beginning of 2015, but Google and General Electric still manage to take two of the top three spots. Eight other American organizations reported 10 or more meetings in the first half of 2015. They are Microsoft, IBM, BlackRock, the Institute of International Finance, Apple, Goldman Sachs, the Pew Charitable Trusts, and AT&T. There is also evidence of robust Expert Group participation among American organizations, particularly among well-established technology companies. Microsoft, IBM and Cisco Systems all report membership in multiple Expert Groups, focused on relevant policy areas including spectrum, cloud computing, patents and more. Meanwhile, the American Chamber of Commerce to the European Union participates in Expert Groups on policies areas including agriculture, trade, technology, tax and more.

Consultancies

 Just as in Washington, many companies rely on well connected consultancies to represent their interests in Brussels. Consultancies either based in or with strong ties to the U.S. are major players, especially in the EU parliament. Just four consultancies that are either based in the United States or are subsidiaries of U.S. organizations hold 142 European Parliament badges, employ 103 lobbyists and have a declared lobbying budget of €15.5 million per year. Major consultancies tend to pull clients from a number of countries, but American interests use them as much as anyone else. A quick look at the top five consultancies (by number of Parliament badges) and their major American clients shows that consultancies are retained by many of the major American influencers as well as a number of organizations that have smaller direct presences in Brussels.

1. Fleishman-Hillard is one of the world’s leading communications firms  and a major player in Brussels. The U.S.-based consultancy has 70 staffers in Brussels, many of whom are registered for access to the Parliament, and a budget of more than €6 million. Its list of U.S.-based clients includes major corporations such as JP Morgan, ExxonMobil, Morgan Stanley, General Electric, McGraw-Hill, Apple, Nike and more. They also have a significant contract with Monsanto’s European subsidiary.

2. Kreab Gavin Anderson based in Sweden, is a strategic communications consultancy specialised in corporate and financial communications and public affairs. They have locations in over 25 countries and are a major presence in Brussels, with more than 30 lobbyists registered to access the parliament and an annual budget well over €3 million. The firm focuses on helping its clients to understand and influence EU decision making. Those clients include American organizations like Emerson Electric, MasterCard, Arizona Chemical and Citibank.  

3. Burson-Marsteller is based in New York, but has operations in 110 countries including a strong European network that is based in Brussels. The Brussels office has a budget of €5 million with around 30 lobbyists. It has a range of American clients including ExxonMobil, Eli Lilly, 3M, Pfizer, Westinghouse, Genzyme and the University of Pittsburgh Medical Center. Burson-Marsteller also represent Dow Corning Europe.  

4. FTI Consulting is a K Street mainstay who moved into Brussels in 2008 by absorbing Blueprint Partners, an independent, creative start-up. They now have close to 30 lobbyists and a €2 million budget to provide its clients both public affairs and strategic communications advice and implementation. The firm's American clients include Halliburton, Facebook, MasterCard, Prudential, Noble Energy, the Bill and Melinda Gates Foundation and Google.

5. G Plus Ltd  is a U.K.-based firm that specializes in political and regulatory risk, advocacy, reputation building and litigation communications. The EU operation has close to 30 lobbyists and a budget of more than €3 million. It has a number of American clients including Archer-Daniels-Midland, NBC Universal, Qualcomm, Avis, Hertz, Equifax and Chiquita.  

Trade Groups

The American Chamber of Commerce to the European Union, despite being registered in Belgium, is one of the strongest voices advocating for American interests in Brussels. It has been called the most effective lobbying force in town and works on behalf of 140 American companies with operations in Europe. The membership list is not easy to find, but its board and policy committee features representatives from Oracle, Intel, IBM, Coca-Cola, UPS, Cisco, GE, JPMorgan, 3M, United Technologies, Caterpillar, AT&T and more. They have eight lobbyists registered to access Parliament, have reported 22 meetings with the Commission this year, and have an annual budget of just around €1 million.

Other Trade Organizations

Beside the American Chamber of Commerce to the European Union a number of more focused American trade organizations are also active in Brussels. These include the Motion Picture Association, the Computer and Communications Industry Association, the Managed Funds Association, The US Dairy Export Council ​and more. These organizations tend to be less active than consultancies, corporate offices or a major player like the American Chamber of Commerce to the EU, but they still represent an important slice of the larger picture.

NGOs

Not all American players directly represent corporate interests. While they tend to have much smaller budgets and fewer lobbyists, some American NGOs, like some of the smaller trade organizations, manage to be energetic participants in the EU policymaking process. Some of the most active American NGOs include The Pew Charitable Trusts, Human Rights Watch, the Center for Democracy and Technology, the Bill and Melinda Gates Foundation and the Humane Society.

Trade Agreements

Trade agreements are particularly high-value targets for corporate lobbyists.  Europe and the United States are currently in negotiation over another major trade agreement, the Transatlantic Trade and Investment Partnership (TTIP). Lobbyists have been active on the deal in the United States and Europe. In the U.S., more than 190 organizations have mentioned TTIP in at least one lobbying report. Meanwhile, in Europe corporate lobbying on TTIP has reportedly been aggressive and overwhelming compared to public interest influence.  American organizations that have met with 75 European Commission officials on TTIP since the beginning of 2014 include Ford, the Chamber of Commerce to the United States of America, AT&T, Goldman Sachs and General Electric.

Conclusions

American organizations are actively influencing EU policy through direct lobbying, participation in trade associations, contracting with independent lobbying and political communications firms, membership in Expert Groups and more. They use all available avenues to push their policy goals and ensure that their strategic messages are heard. American influence comes from many sectors, but is particularly strong in industries that are truly global, technology, trade and finance to name a few. The EU’s governance structure creates many opportunities for influence and attracts lobbyists like moths to a flame. It should come as no surprise that organizations form the most powerful economy in the world are major players in Brussels. That said, the system can and should be made more transparent. It is slowly moving in that direction with groups  pushing for more oversight, better data and serious buy in from EU and lobbyist stakeholders