People dont understand ...
... what the European Union is.
They dont understand
how it is governed.
They dont know who are
the people who runing it.
But they know that they were
not chosen by the people.
And so, when they see the results
less than perfect, they say, ...
... 'Who do we blame?'
And they dont know
who to blame ...
... because they dont know
who these people are.
When I started out as a young
environmental activist, ...
... I had no idea that I should end up as
watch-dog in the Brussels machinery.
But I was stunned
to the discover ...
... how fragile political
decision-making process is.
And to realize how easily
it can be manipulated.
There is a dark force
behind this machinery.
An entire industry
operating in the shadow.
Often in secrecy
and very confidential.
This industry is
the lobby industry.
For 20 years now, I've
been fighting to uncover ...
... who are these people who are
pulling the strings of the EU decisions.
How do they operate?
And how they are linked
to the EU political elite?
Hello?
Oh yes, good evening.
I'd like to speak
to Rafael, please.
Oh, he's not there. Listen, I'd like
to leave a message for tomorrow.
I just want to confirm
the meeting ...
... that we have fixed.
My name is Mr. Kerneis.
Pascal Kerneis. K, E, R, N, E, I, S.
Yes, from the European
Services Forum, ESF.
Yes, and we have
meeting tomorrow, but ...
... I did get time today to
confirm. I want to do it now.
Is that ok? Yes?
Thank you very much. Bye-bye.
Well, Brussels is a small city,
kind of a province city, ...
... but that is
only the surface.
And then, when you know
a bit further about it, ...
... Brussels is a
really good place.
This is where the business taking place.
This is where legislation start.
I think that the figure is
around 80% of all legislations ...
... which are touching
direct life of EU citizens, ...
... is actually initiated
here in Brussels.
If you look at
place Schuman, ...
... the epicenter of political
power in Europe, ...
... you see the European
Commission on the one side ...
... next to the
Council of EU.
And all around that square
you'll find lobby offices.
Most of them belonging to
big multinational corporations.
You'll find them also
in all side streets.
All over to the European
Parliament and beyond.
You'll find the lobby headquarters
of large corporations.
You'll find industry
lobby groups and their ...
... lobby operations been orchestrated
from the offices in that area.
2500 lobby structures
are based in Brussels.
15 thousand lobbyists.
The second biggest
lobby industry in the world.
Only Washington DC is bigger.
So, EU legislation is ...
... complicated and goes
through a lot of stages.
It always start with a
European Commission.
They take new initiatives
for legislation, for policies ...
... and it goes through the institutions.
Parliament, the Council of Ministers.
And from the moment that
the European Commission ...
... take very first steps in developing
new legislation or new policies, ...
... Industry wants to be
there to influence it.
Administration is not
really for me, so I really ...
... want to have the
possibility to go and work ...
... for the private sector,
where I'll decide myself ...
... what I will do.
I thought that is much more ...
... something for me.
And then I discovered a business
around the European institutions.
And I started
to be a lobbyist.
You know, we ...
Everybody believe about ...
... the lawmakers
are institutions.
A institution in the
European Union is about ...
... The Commission, the Council of
Ministers and the European Parliament.
But there is also another
world behind that, which is ...
... how to influence
the institutions?
To make a text.
To give a good idea. To ...
... propose amandmans, to
try to find you in the text ...
... depending on the interests of
people who are willing to push for.
In the mid '90s ...
... we have come across so may examples
of EU policies that are basically ...
... captured by the industry
and industry lobbying.
We felt it was really
fundamental problem here ...
... the influence of industry
is excessive. And ...
... we decided to setup a group
to document examples ...
... and to start developing a strategy
to rollback this excessive influence.
That's how it started.
In the early '90s I was working as
enviromental campaigner within NGO ...
... based in Amsterdam,
cooperating with other ...
... enviromental NGO's
across Europe.
One day in the summer of 1993.,
I remember that fax came in ...
... the fax machine in the office and
it came from the south of France ...
... from local
environment group.
The group was
fighting against ...
... motorway that was planned
to go through the valley ...
... in the area they lived.
In the valley of D'Aspe.
Ecologically very important area.
Very beautifull area.
The group asked if we knew
more about the role of the EU ...
... and specifically the European
Commission in this motorway project.
So we started
looking into this.
We discovered that this
motorway project ...
... was part of something called
Trans-European Networks.
Trans-European networks
was the biggest ...
... infrastructure project
in the history with ...
... estimated budget
of 400 billion euro's.
Friends from Sweden
came up with another detail.
There was an influential lobby group
behind this and they asked us ...
... 'Do you know of ERT, the European
Round Table of Industrialists?'
I did not.
I started digging for more
information about ERT.
I went to our archive
and I didnt find anything.
I started diving into the alien
world of business press.
Newspapers like the Financial
Times, The ecconomist, ...
... German business
newspapers.
And we've found
references to a new report ...
... that have been published
shortly before, called ...
... 'Reshaping Europe'.
That sounded
rather interesting.
And we've ordered this report from
European Round Table headquarters.
I did not believe that
I would get anything ...
... but a few days later
a big brown envelope ...
... arrived in
my letterbox.
Three booklets
were inside.
I took the first two
publications, ...
... 'Missing networks',
'Missing links'.
Gone through them.
Something is strange about them.
Euro Tunnel
Scanlink
Pyreneas corridor
Somehow they
looked soo familiar.
I went to the archive.
'TEN project'
by the Commission.
I went through the papers.
I compared them. Back and forth.
What a striking similarity.
Projects are almost identical.
The Commission seems
copy/pasted ERT proposals.
Now I was
really curious.
I took 'Reshaping Europe'.
The authors,
three CEO's.
Jerome Monod, Pehr
Gyllenhamar and Wisse Dekker.
Living in the Nederlands
I knew Wisse Dekker.
He was the head of the Philips. One of
the largest companies in the country.
Pehr Gyllenhamar was the head
of Volvo, car producing company.
And Jerome Mono was the
head of Lyoneaisse des eaux, ...
... very large French
multinational.
So, the authors of
this report were ...
... three CEO's from some of the
biggest companies in Europe.
It was a political manifesto
written by these industry leaders.
Meeting in Dublin
is mentioned.
45 CEO's.
All from multinational
companies, ...
... representing billions
of euro's of turnover.
Companies like
Fiat, La Farge, ...
... British Petroleum,
Hoechst, Nestle, ...
... Shell, Unilever, Siemens
and many others, ...
... all of them supported
what is in this book.
What was
stunning was that ...
... these three CEO's would
sit down and actually write ...
... report that was a detailed
set of recommendations ...
... for how to change
the face of Europe.
I finished my job with the
Commission in April 1990.
And I have decided that maybe is best
place is, actually, where the money is.
So I went to the European
Banking Federation.
I have worked
a long time.
Nine years in the European
Banking Federation ...
... and I started
also to discover ...
... an additional work to
Europe, which was ...
... international trade.
It was just before
1992. single market.
Jacque Delors at that
time was the president ...
... and he had
really givin' impetus.
He emphasised that
Europe was something ...
... and that we
have a role to play.
And that was really pushing
everybody in the city to say ...
... 'There is something that
all of us together can do.'
It was a feeling that
if we act together ...
... we can be friends
and change the world.
I can say that I
represent around 80% ...
... of all of the services
exporters and investors.
I can say that I represent
around 60 million workers.
As a turnover it is, let's say 50%
GDP of the European Union.
I dont really
believe in to chance.
It's part of it, but most of the
time you will provoke a chance.
And then it's gonna
be up to you to ...
... see opportunity when
the chance is there.
In December 1993., NGO
network I worked for ...
... had it's
annual meeting.
And the meeting should
take place in Brussels.
They decided that this was
the perfect opportunity ...
... to do something
a little provoking.
Night before we
wrote press release ...
... and in the early morning
we went to the ERT office.
One of us rang the door bell
and told the secretary that ...
... he is a student looking
for some documents.
When the door opened we all
run up the stairs quickly ...
... and we all managed to get
in the ERT office that way.
I remember it very well.
I was at some meeting ....
... in the morning, so I think
it was mid-morning ...
... when I came
into the office ...
... and found banners
hanging around the office ...
... and a lots of
strange faces around.
So I said,
'What's happening?'
'Will somebody please
tell me what's going on?'
And they said, 'We've come to
occupy your building and ...'
Possibly they
wanted a confrontation.
Possibly they wanted
me to ring up the police ...
... and have the police come
and throw them out, but ...
... it didnt seemed to
be a good idea at all.
Indeed finally, there
was some reasons ...
... but we had
the office lunch ...
... so I took everybody, my
people out to lunch and ...
... left them there.
We were surprised by the reaction
that we got from the ERT that day.
He went often
to a room and ...
... talked about that aparently
and decided to leave.
What we did was that
we used ERT press lists.
We faxed press release
to the international media.
We expected that the
occupation of this ...
... very shadowed
but a powerfull ...
... business lobby group would
really interest thet media.
But things were
a little bit different.
I think we talked
to one newspaper ...
... and there was a radio
program that was interested.
For the rest,
it was silence.
We did not know when the
ERT staff would come back.
But on the tables there were
positioned papers we quoted later on.
But there was also a very
neatly organized archive.
Everything sorted.
So we decided to be fast
and copy as much as possible.
In those documents were
letters from the ERT ...
... and demands from the ER to the European Government ...
... and to the
European Commission.
And there were
the responses.
It really showed us the degree
of access that they had.
And incredible influence that
was clear from those documents.
So when we tracked back
the history of the ERT, ...
... we found that it
started in the early '80s.
ERT represent the first time
that multinational firms ...
... organized purposely and
politically at the European level, ...
... to try to influence
European policy.
In the early 1980s,
Europe was behind.
You had rising Japan and ...
... of course, strong
United States and ...
... Europe was really
concerned about falling behind.
What happened
actually is that ...
... Pehr Gyllenhamar from
Volvo started talking about ...
... trying to find a way to create
a marshall plan for Europe.
Gyllenhamar himself was
known as a political animal.
He loved a limelight.
So Gyllenhamar drew up a list
of heads of multinational firms.
Individuals who might
come together ...
... and come up with some ideas
and actually participate ...
... in finding solutions to
economic problems at the time.
From the Commission, ...
... the member of the Commission who
was really keen was the Belgian ...
... called
Stevie Davignon.
He had diplomatic and
business background ...
... and he could see
the need and he said, ...
... 'If I want to talk to European
industry, who do I talk to?'
What I found out when I was
commisioner for industry ...
... that there was an insufficient contact
inbetween the Commission and the ...
... economic apparatus.
The relation which existed
was a relation with ...
... federations of Industries at,
I would say, the official level.
But not at the level of
the people who were ...
... responsible for a
individual businesses.
And I felt that we
are missing this.
And so we
decided to set up ...
... group of industrialists,
which later became the ERT, ...
... so as to have the capacity
to listen to the CEO's.
There were Agnelli's
who run Fiat in Italy.
There was Wise Dekker who
run Philips' in the Netherlands.
There was Pehr Gyllenhamar
who run Volvo in Sweden.
People from Siemens and big
German chemical companies.
French, Spaniards and the British.
A small number of people who run
the biggest companies in Europe ...
... and were ready to talk
about big policy issues ...
... with those people who were
in charge in the European ...
... goverment machine.
And then when they meet ...
... a visionary president of the
Commission Jacques Delors, they find ...
... that Jacques Delors is thinking
in entirely the same terms.
So why dont we get together
and pull their ideas?
That's the
breakthrough we made.
I'm fascinated.
That's probably a good word
to put me as a description.
Lobbying is always ...
... understood as a bit of
a dirty work, but it's just ...
... networking, just contact
between human beings.
The world is very
small, actually.
The people we have to reach out
actually at the end of the day ...
... is becoming
smaller and smaller.
If you know the
right person ...
... actually, always gonna be about
100 persons that are keepers.
The rest are
moving around.
You know that I, actually, the next
week I have a appointment with a ...
... someone from the
Taiwan delegation and ...
... in Brussels ...
We'll talking about ...
Companies are
global nowdays.
And therefore the
American companies, ...
... the Chinese companies, the
Indian and Taiwanese companies, ...
... are actually, my highlights. We are
working together for the same purpose, ...
... which is to
open up the market.
I have contacts friends
in other countries.
And we have actually established
global services coalition, ...
... so we working together to
push and put the pressure ...
... for the same purpose.
The word 'lobbying' is about actually,
working in the lobby of the hotel.
And meeting the people ...
... with which I'm going to go
in a decision-making meeting.
Ok, shall we go?
Shall we go?
You have to be first
well informed, ...
... consistent and modest.
The world is changing,
people are changing everyday ...
... so I'm always very
careful in what I'm saying.
I am very careful about
what is right today ...
... might not be
right tomorrow.
It's because we are on the
long-term basis. My job it's ...
... not going to be pretending that I'm
going to change the world tomorrow.
And the only way
for me to deliver ...
... is to meet and meet again and
repeat and convey messages.
1993. was the year
when the EU was born, ...
... to us that's been sold
as a political project.
But these letters that we
have found in December ...
... pointed in a totally
different direction.
The files showed that the ER and the European Commission ...
... were meeting
on a regular basis.
The tone is amazingly
jovial and informal.
However, all that went
on in complete secrecy.
ERT and the European
Commission work hand in hands.
In 1984. 'Missing links'
was published.
And immediately after the European
Commission sets up a working group ...
... with ERT, on
exactly this topic.
In January 1985. Wise
Dekker, CEO of Philips, ...
... presents his
'Europe 1990' ...
... and his action plan
for the single market.
10 days later, Jacques Delors, new
president of the European Commission ...
... gave a speech about the single
market in the European Parliament ...
... which sounds like the
echo of Dekker speech.
In June 1985. the Lord Caulfield,
Vice-President of the Commission ...
... published his famous
single market 'White Paper'.
Copy/Paste
of Dekker plan.
Every 6 months there
was an EU summit.
And every 6 months the ER met. Just a few days before.
Location and date
were kept confidential.
The booking was made
two years in advance.
They met at that
level twice a year.
One of them took on
responsibility of ...
... arranging the meeting.
So often they would meet
in some fairly nice place.
We met once in the
opera house in Milan.
We met in a big
museum in Germany.
We met in Royal
Palace in London.
And they were arranged
for the Prime Minister or ...
... Foreign minister
or whoever ...
... to come and talk.
Sometimes it was
very impressive.
When everybody was struggling
to join the single currency, ...
... I can to this day remember
the Finance Minister of Spain ...
... when there was a
general elections, he said, ...
... 'Dont bother. Whoever
wins this general election ...'
'... Spain will do
whatever is necessary.'
It's a terrible
strong message.
He felt able to speak for
the other parties as well ...
... because he knew
that Spain is determined.
That kind of things
is very impressive.
We talked to a
French Prime Minister ...
... who had a lot of doubts
about world free trade.
One of our people,
may have been Norwegian.
Somebody who wouldnt normally
get mauch of a chance to talk ...
... to a French Prime
Minister, he said, ...
... 'You've got to do this, Prime Minister.
You've got to be a part of this ...'
'... free trade
movement.'
And then one of the German
chemical people spoke up ...
... and said the same thing.
'We need free trade.'
'European business
need free trade.'
'France must
not block it.'
And I dont think that the French
Prime Minister took that seriously.
Because no
French businessman ...
... would talk to him
in those terms. Well, ...
... I think it's important to see
that the ERT was club ...
... of top businessman
and it operated as a club.
There were no delegates,
they turned up in person.
Talking to other members
at their own level.
So it functioned like a club,
like any other club, ...
... like a church
club or dance club.
When they met, ...
... if you put the Italian
car manufacturer ...
... and a German chemical
manufacturer together ...
... they discovered that they
have common problems.
They are all worried
about barriers to trade.
They are all worried about
skill of young people ...
... who were
trying to get jobs.
They are all worried about
the world financial system.
And so, all the time we
are meeting this way ...
... and these people would give
48 hours, which is a lot of time, ...
... and then all
go home. And ...
... we would hope they
would spread the message ...
... to their own colleagues,
to their own countries ...
... and to their own governments,
to their own politicians.
You know, to talk
more widely about it.
Saying that we need to build
Europe that works better.
Because without
Europe we are lost.
Left behind was a clear message
to the following EU summit ...
... for the heads of
goverments a few days later.
Adopt this
single market ...
... and monetary union,
infrastructure projects, ...
... flexible labor market,
deregulation, ...
... downsized public services,
austerity measures ...
... and so on, a whole
Neoliberal agenda for them.
It was the message of the
ERT you could find it ...
... also elsewhere in kind
of a business circles. But ...
... what we found
very scary was the ...
... very close cooperation
and personal links also ...
... between ERT and the European
Commission, in particular.
So basically, our picture got
confirmed by American scholar ...
... steppin' in to the topic,
Maria Green Cowles.
I was interested in ...
... doing something about Europe,
something about the EU.
Here in the US
we really didnt ...
... know much about the
single market program ...
... until our business people here
in US brought it to Congress.
And all of sudden there was this big
disscusion about fortress Europe ...
... and that the European Community
at the time was creating this entity ...
... that would prevent American firms
for beeing able to do business there.
And if you ask me to think
what was the role of business ...
... behind the single
market program ...
... what I could read and what have
been published at that time, ...
... really have suggested that it was
largely government led initiative.
But once I started
asking questions ...
... in meeting with different
people in Brussels ...
... it started a whole
different story.
I start to talking with some
of the CEO's and then ...
... particularlly with the Corporate
Affairs managers of these firms ...
... to ask them
what happened.
And everybody had a
little piece of the story.
And then I met with
Keith Richardson.
Keith and I would talk about
different things and ...
... he would give
me some ideas ...
... and I'd go and talk
with other individuals.
And then I come back
with more questions.
And sometimes used he had the
answers and sometimes he didnt.
And finally, I believe it was on
my seventh meeting with Keith, ...
... When I said to
Keith, 'You know ...'
'... I can write about this, I can
have all of these interviews, ...'
'... but I really want to
see the pieces of paper.'
And Keith said
to me, 'Well, ...'
'... I have a bunch of cardboard
boxes in the basement of ERT.'
'We have not opened them.'
'They are from the earlier days. We
just put this material in the boxes.'
And of course, in a back of my mind
I was very excited thinking this is it.
Maria Green Cowles
came across a telex.
It was from Wise Dekker,
CEO of Philips.
In December 1985. he
wrote to the heads of state.
Just before the signing of
the single European act ...
... which started the process
of the single market.
The crux of the telex
was as follows ...
... 'We dont know what you are
going to do, but we want you to act.'
'You can act one
way or another.'
'If you choose not to have
a single market program ...'
' ... then you have given us
no choice but perhaps ... '
'... take our
business elsewhere.'
This was a clear threat.
ERT represented 60% ...
... Western Europe's
industrial output.
This was blackmail.
Why didnt single government say
anything about the Dekker telex?
Or about the other
threats that followed?
They were all elected
representatives.
We felt that this
was a betrayal.
And we wanted to do
something about it.
It was important that bigger
public to know about this.
And we decided
to publish a book.
Besides collecting data we
started to make interviews.
Undercover interviews.
Erik was the perfect person
for doing these interviews.
At that time, Press Accreditation
was easy to obtain.
For a magazine or journal,
and you are a journalist.
I mean, it was not
completely untrue, ...
... it was also not
completely true.
By the mid 90s the
ERT was everywhere.
In advisory boards
for the Commission, ...
... in export groups, in research
institutes and Think tanks.
Some people said that it was
hardly lobby group anymore but ...
... already part of
the EU institutions.
However, the ERT was only one out of
over 2,000 lobby structures in Brussels.
We started to dive
into the lobby world.
In business federations,
lobby consultanties, ...
... in Public
Affairs offices, ...
... in Think tanks.
Finally in spring 1997., we assembled
the results of our investigations ...
... and interviews
into the report ...
... 'Europe, INC'.
We scheduled a book launch for
big EU summit in Amsterdam.
All the media will be there.
We were excited.
We have prepared a book
launch and a half-hour before ...
... first friends started
to arriving. But ...
... very little or no
Press showed up.
So yes, that was
disappointing.
We thought we had some
very exciting material ...
... presented in
a nice way and ...
... it is clear that is
disappointing that the ...
... media didnt
take up that story.
A very large part of companies
investing abroad are actually ...
... discriminated toward
the local competitives.
Sometimes they dont give you the
licences all day. Wait very much all day.
Put a lot of taxes, they
find ways and means ...
... to slow down your
business. You are obviously ...
... not in the level playfield and
that is your disadvantage, so ...
... my job is actually about
removing these difficulties ...
... and sometimes
through barriers.
When I was a little boy
I remember one of my ...
... dearest toy was
actually the globe that ...
... I've been offered once
for Christmas. And ...
... I was looking at this world
and all the different countries ...
... and I was dreaming
about it and I felt ...
... 'One day I hope
I'll be able to travel.'
We have just concluded
most ambitious ...
... of market opening and
rule making exercise ...
... strengthing rules based
system of multilateral trade.
And perhaps
most important, ...
... the establishment of a stronger
and more broadly based ...
... World Trade
Organization.
When I started to work on financial
services GATTs negotiations, ...
... that was really a time when
I've discovered that this is ...
... really interesting and
I really liked to do that.
What is interesting in
international trade is ...
... international treatty
signed by the EU.
Even if it is not European legislation
is above European legislation.
And all countries of the
EU have to respect ...
... an international treatty
that the Union has signed.
We've come to the end
of the most far-reaching ...
... trade negotiations ever.
You, the negotiators of the
117 governments involved ...
... have achieved
extraordinary success.
With your
approval therefore ...
... I gavel the Uruguay
round is concluded.
The internal market of
the EU was becoming an ...
... a very important
market, rich market.
With the highest
GDP per capita and ...
... that when the EU was going
outside and negotiate as a block ...
... they had a real power. Because
it was the biggest exporter, ...
... biggest importer,
biggest foreign investor.
But sir Leon Britain, ...
... trade commisioner EU was
complaining that every time ...
... he was going to negotiate
with the United States ...
... in front of him he
will see his counterpart.
And on his back he will
have CEO's of big banks ...
... and big insurance
companies telling him, ...
... 'Please do that for me,
please do that for us.'
But when sir Leon Britain was turning
his back to see where his support was ...
... he was actually had only
some ministers that saying ...
... 'Dont do this, dont do that.
Please do that only but no more.'
And he was really
not very happy.
We discovered that there is a whole
world of lobbyists in Washington.
To tell their government what they
want in the Trade Organisation.
And we thought this is
the way we have to go.
We have to do
something like that.
European institutions
is asking for it.
European institutions
can not only ...
... rely on information given
by the member states and ...
... experts in the
Finance Ministries.
They need to get the
information directly from ...
... the banks and
insurance companies.
The World Trade Organization
was planned at the time ...
... when there was a wave of
privatization around the world.
And when there was a
dominant thinking that ...
... what is good for large
companies is good for everyone.
Just give them
free reign.
In October 1997.
I was on the train to Paris.
On the way to a meeting that
will bring together activists ...
... from across Europe
and around the world ...
... to discuss trade agreement
that was negotiated ...
... behind closed
door at the OECD.
The debate was about the multilateral
agreement on investment MAI ...
... and it was about
international investments.
Sounds pretty harmless,
to an outsider, probably.
But in reality, it's boiled down
to a massive attack and ...
... undermining potentially
of Democracy.
Multilateral Agreement on
Investment was cooked up ...
... by some of the worlds largest
corporations and their associations.
And their goal was to
constrain governments ...
... from regulating these
big corporations ...
... and from regulating
capital on investments.
It literally constrained
governments.
It put hand-cuffs on government
regulation. And then ...
... empower the corporations
with a whole new set of rights ...
... to be freed from regulation
but also to sue our governments.
So, this agreement would have
meant that governments ...
... would have to compensate
foreign companies ...
... if they wanted to increase
environmental protections, ...
... if they want better
labor standards, ...
... if they want to secure
equal treatment for women ...
... or if they want
to tax capital.
MAI would even let to
companies been compensated ...
... for expected profit that
they might lose from some ...
... new law or regulation.
This goes completely against
the logic even on a free market.
Negotiations were top secret
and behind closed doors.
Until the official proposal
by the EU was leaked.
It was some Canadian group
that somehow obtained ...
... electronic
copy of the text.
Well clearly, the original source ...
... was a Democracy
loving civil servant ...
... in the government, that
sholud not be mentioned.
How that eventually
got around is ...
... we scanned the
text into a website ...
... and wrote the commentary
on what it ment ...
... so that the lay person
could actually understand it.
But when all of
this got public ...
... it turns out that several of
the European governments ...
... didnt even
know about it.
And then France
put up her Veto.
So, business had
been so successful ...
... in influencing
the MAI rules, ...
... that this time it was
counterproductive.
Despite the defeat in the
OECD with the MAI talks, ...
... commissioner
Leon Britan ...
... didnt want to give
up of this project.
So he broughted in again
under the name MIA ...
... and wanted to
launch a similar ...
... Investment treatty
in the WTO talks.
Mr. president, ladies
and gentlemen ...
... I think there is a wider degree
of consenssus on this issue ...
... than protagonists
would wish to admit.
The fact to the matter is that most
people, if not all who spoken ...
... do see the merrits of international
Agreement on Investments.
And they are
right to do so.
You can not force
investments to take place.
You can do
what you like.
You can shout and you can
scream slogans from the sky, ...
... but people
will not invest ...
... unless they believe that
there is a possibility ...
... to get a return.
Now it well may be that the
scene shifts of the WTO.
To achieve that we have
to persuade everybody ...
... that there should be a
new Millennium round ...
... and we have to
persuade people ...
... that the negotiations on
investment should take place in it.
So then in that
point of time ...
... the European trade
commissioner sir Leon Britan ...
... decided, 'I am going to
invite for dinner 40 CEO's ...'
'... of the major services
companies in Europe.'
Big banks,
big Telecoms, ...
... big insurance, big
distribution services, ...
... big transport services,
big tourism companies, ...
... and all different sectors ...
... that it is actually making
about 70% of GDP in Europe.
So, he invited a bunch
of 40 of those and ...
... after dinner, he said, 'Well,
now that you've got some ...'
'... some 'food' by the Commission
you owe me something.'
'You have to do
something for me.'
People sometimes think
that the Commission ...
... comes up with ideas out of
the blue and then pushes them.
It's not so at all.
The Commission is thirsty for
ideas from the economic actors ...
... to help us ...
... to decide what to put forth
which is in the interest of Europe.
It really was, I think, at
the time when ERT ...
... became more and more
present in the city.
It became clear that there
was a new way of lobbying.
But the ERT, from the world I'm coming
from, which is the services sectors, ...
... didnt represent anybody.
So, it was clear also that if the
service sector wanted to be heard ...
... they had also to
bring some CEO's ...
... to put their
voice loud.
Whereas we had strong ...
... European bodies pushing for
steel industry, agriculture, etc, ...
... the services were not
united and didnt provide ...
... clear voice and advice
for the Commission.
And that was very important,
it was a various sectors, ...
... the most
important sectors ...
... and we needed this advice
and I wanted that to provide it.
That's the way I became the managing
director European Services Forum.
We had 11 months
to prepare Seattle.
The first WTO ministerial conference
after the creation of this organization.
And the idea was that this
meeting is going to launch ...
... Millennium Round that sir Leon
Britan had so much pushed for.
The Commission has for very, very
long time taking as its starting point, ...
... interests in the negotiations, the
interests of large European companies.
For example, when we would ask for
access to Commission documents ...
... like a correspondence and
minutes from meetings, ...
... to reconstruct
what is going on ...
... whole fuss arises.
The Commission would treat these
requests as if they were hostile act.
They would
crossout all the ...
... essential elements that they
think not want us to know.
Treating us as if
we were an enemy.
Sir Leon Britain
never got to Seattle.
The entire Commission
had to resign ...
... because of the
massive fraud ...
... several commissioners
were involved in.
And in Seattle, ...
... Millennium round itself took
completely unexpected turn.
We were not alone
anymore with our concerns.
I was based in
the Hilton Hotel, ...
... and conference was in
the Sheraton, 500m away.
And I'm not been allowed to
go out of the hotel because ...
... there was one protester blocking
the door by laying on the ground.
And it was the police
officer beside him ...
... I asked him, 'Can
I go outside please?'
'I'd like to go
and do my job.'
I was going to assist to the
launch Seattle round, ...
... so that we will enter into
a new phase negotiations ...
... for liberalization
of services.
I remember that the commissioner
Lamy was on the way to his car, ...
... but the car
couldnt move.
Because those people
there ... is just there.
And a policeman said to them,
'Please go away 5m ...'
' ... so that the high VIP
here can do their job.'
There are many NGOs saying that
ESF is super secret organization ...
... at the secret meeting with
the European Commission.
Although everything
is on my website.
I mean, I am
doing my job ...
... by contacting Commission
officials responsible for my file.
If anybody else would
like to do same, ...
... their phone number
is on their website.
I'm just doing my job and I dont
have anything speciffic, but ...
... if the Commission has
some relations with ESF ...
... it is because the
Commission is ...
... willing to get some information
from the services sectors ...
... before negotiating on their behalf.
Because this what we talking about.
Trade is done by
companies, not by NGO's.
This is the annual dinner
of the 'Friends of Europe' ...
... which is really a very
big Brussels organization.
Lots and lots of people
from different countries, ...
... different jobs,
different walks of life, ...
... are all interested in ...
... how can
Europe develop?
How can we pull right
the things that are wrong?
How can we build on
what we've already done?
I will call it a Think tank.
Think tanks in Brussels are
filling a part of vacuum ...
... that exists at EU level, that there
is no European public debates.
So Think tanks step in
to that vacuum and ...
... they are forums in which
something like a debate happens ...
... inside the
Brussels bubble.
There are national politicians,
there are European politicians, ...
... there are Civil service and draeded
bureaucrats are here, diplomats, ...
... businessman, there are professors
from universities, all sorts of people.
One thing about Brussels.
It's a bit like a village.
Everybody talks
to one another.
When I worked to the ERT, ...
... part of my job was
to keep in contact.
Think tanks are not
themselves lobbyists, ...
... but they are part of the
landscape of lobbying because ...
... companies use them to transmit
their demands and their perspectives.
And all of these are heavily
depended on industry funding.
Several people sponsor it.
Microsoft is one of them.
American business is present in
Europe. Microsoft is one of them, ...
... why not?
You have had Think
tanks in Brussels ...
... that were directly funded
by the oil industry ...
... and to working
to resolve ...
... whether there is such
thing as climate change ...
... and whether it's important
for governments to act ...
... to reduce the
CO2 emissions.
You can setup research institute
to provide you with the ...
... research that would
strengthened your position.
You can alunch massive
PR campaigns and ...
... flood the media
with your information.
What also happens is
seting up fake NGO's ...
... as happened in big battle
about self repentance law.
Suddenly the word is advertisment
from the NGOs that ...
... said it was representing small
and medium set companies, ...
... but financial backers of these
NGOs are Microsoft and SFE.
In the end it's
all about money.
In Democracy it's one
person - one vote, but ...
... in Brussels business
is 1 euro - 1 vote.
The problem is that we dont know
about the money behind the politics.
We dont know how much
was spent on lobbying ...
... by whom and
on which issues.
We need to get this
under democratic control.
It has to be made visible what role is
of lobbying in the EU decision-making.
What is the role of large
companies like Monsanto or Shell?
And what is the role of
foreign governments ...
... like the Chinesse or Russian
in making decisions in Brussels?
We actually have had a Lobby
Disclosure law in the US.
Although most people do not
know this, since World War II.
President Franklin
Delano Roosevelt ...
... was worried that Adolf Hitler
was trying to lobby Congress ...
... to prevent the US from
entering World War II.
Todays threat to our
national security ...
... is not a matter of
military weapons alone.
We know of new
methods of attack.
The Trojan horse,
the fifth column.
And as a result, he passed
this Lobby Disclosure law ...
... that said quite simply, if
your primary purpose is to ...
... influence legislation
on Capitol Hill, ...
... then you have to register
and disclose who's paying you.
To do that sounds simple enough.
However, that was mandatory.
It essentially made it as
a voluntary system, ...
... because that type kind
of definition is so subjective.
What is one's
primary purpose?
And as a result you had
9 out of 10 lobbyists ...
... not registering
and not disclosing.
When I started to work as
Capitol Hill lobbyists in 2002. ...
... that was the
time when the ...
... style of lobbying evolved
things like gift giving, ...
... campaign contributions,
fundraising, ...
... hiring the revolving-door
persons out of Congress ...
... with lucrative jobs.
And I noticed I just wasnt able
to get through to most people.
I couldnt even get through to
meet with many lawmakers ...
... unless I had
something to give.
So I started preparing ...
... legislation to reform the
lobbying process. But, ...
... as you can imagine ...
... no one reallly was interested
in my legislation proposal.
What changed
everything was this ...
... 'super-lobbyist'
named Jack Abramof ...
... who's suddenly was caught in the
middle of a big major sting operation.
I he agreed to
point the finger ...
... at those lawmakers
whom he bribed.
And as soon as
that news broke, ...
... my phone started ringing
off the hook over in my office.
I didnt even have to go visit
any legislators anymore.
They were calling
me, saying, ...
... 'You know that reform legislation
you were talking about?'
'Could we sign on to that?'
And at that point the legislation moved
through Congress, it moved very quickly.
And this is known as the Honest
Leadership and Open Government act.
We had a desire to regulate
lobbying for a long time.
But in 2004th the new Commission
came in. And for the first time, ...
... 10 East European
countries were a part of it.
The first Barroso Commission
started in the autumn of 2004.
We wrote an open letter to the
Commission president, ...
... to Jose Manuel Barroso,
signed by over 50 NGO's.
Response was a very
short form of letter.
I'd say we have received two letters
with, 'Thank you, very interesting.'
But no substantial response.
So we sent a similar letter to all the
Vice-Presidents of the Commission.
And suddenly, towards
the end of February ...
... we were contacted by
the office of Siim Kallas, ...
... commissioner from Estonia
responsible for administration ...
... inviting us
to come over.
So we went to
Mr. Kalas's office ...
... which was somewhere
on top of the building.
We didnt know what we had
to expect from this meeting.
We have never been approached
by a commissioner ...
... so in this sense,
it was very exciting.
We were welcomed
by Mr. Kalas himself ...
... and one of his
cabinet members and ...
... in his hands Mr. Kalas
had a brochure and ...
... that makes us smile.
It was the lobby plan of guide
to Brussels which was a ...
... cheap but very critical look at
industry lobbying in the EU, ...
... written by Erik and me
and our colleagues.
When I started as
administration commissioner ...
... I really saw that there
was so big suspicions ...
... surrounding
decision-making in the EU.
And of course I put
certain ... let say ...
... established for myself a purpose
to little reduce this suspicions.
Kalas told us that he
was going to launch ...
... this European
transparency initiative, ...
... and we immediately saw that
it was a big political opportunity.
As an outsider to the Brussels
business he also had a clear sence ...
... for how the ordinary citizen
thought about Brussels.
I Siim Kallas took it on
with a lobby industry.
European Commission
is convinced ...
... that activities of the interests
representatives are legitimate ...
... and offer valuable input in to
the decision-making process.
But things have to happen
in a transparent manner.
The Commission consideres
that it is important to know ...
... whose interests
representatives are?
What interests they represent? And
against what financial background?
I put a lot of effort to create
a speach and this is of course ...
... outlined. The main principles
of transparency initiative ...
... which should be done.
And it was of
course met ...
... with excitement and a
lot of controversial reactions.
When is a lawyer, a lawyer
and when is a lawyer, lobbyist?
When the EU was considering
European transparency initiative ...
... they were looking for some advices
to how some of these achievements ...
... happened in the US.
And as a result I was brought
about half a dozen times to testify ...
... before the European Commission
and the European Parliament.
So one of my first testimonies
before the European Commission ...
... was very, very
awakening experience.
I had one commissioner
interrupt me and say, ...
... 'Well, we understand you had
a problem in the United States ...'
'... with lobbying activities
and Jack Abramof, ...'
... but he went
on to say, ...
... 'But you know, this is
Brussels and this is Europe.'
'We dont have that kind
of activities going on here.'
'We do not have Jack
Abramof's in Europe.'
Which just kind
of floored me.
That anyone could be so
naive and actually believe that.
Michael Moore perhaps
effective answer was, 'Ok ...'
' ... all concieved that a lot of
this case street lobbyists ...'
'... and the professional
lobbyists here in the US ...'
'... may be corrupt.'
'However, I know every
major case-street lobby shop ...'
'... also has a lobby
shop in Brussels.'
'And so, we are in your bed.
Dont you want to know ...'
'... if you think that
we so corruptible ...'
'... and so corrupting, ...'
'... dont you want to know who we
are and who is paying for us ...'
' ... and what it is we trying
to get you to do for us?'
To tell the truth, I was very
impressed with Siim Kallas ...
... when I first started to work with
him in the European Commission.
Siim Kallas helped
really ushered ...
... the whole significance
of needing transparency.
But, halfway through
the process ...
... Siim Kallas came up
against political realities.
After three years of struggle
and political fight ...
... exhausted commissioner
Kalas enter the stage ...
... to finally launch
lobby register.
It is noon.
Or afternoon.
So quite remarcable
moment today.
Three years ago, I proposed to
setup a register of lobbyists ...
... in order to enhance transparency
and legitimacy around ...
... EU decision-making process
and the register starts from today.
So, we proposed
voluntary solution ...
... because I am convinced
that this would suit for all.
All expectations.
I think that today is a very important
moment of cultural change ...
... concerning these ...
... these aspects of decision-making
in European institutions.
Siim Kallas introduced
voluntary system.
Against all recommendations
by NGO's and experts.
This was the best
he could get.
We've tried for over two
years now to find out ...
... who have blocked
Kallases original intention?
Were it other
commissioners?
The Commission Secretariat?
Lobbyists themselves?
We do not know.
But shortly after, ...
... at the annual award ceremony
of the lobby industry ...
... the winner of the
Think tank of the year ...
... had a clear message
for Mr. Kallas.
I know I'm not mention it in
speeches, but I'm going to.
Because I
wanted to say ...
... we, 'Friends of Europe'
were not sure ...
... whether our efforts are
worth. And I'll tell you why.
Because commissioner
Kallas ...
... who cant tell
the difference ...
... between Think
tank and lobbyists.
I thought that we in
business, we now ...
... 'Friends of Europe'
and other Think tanks, ...
... we provide a platform for
a different points of view ...
... and use them for
the benefit of people.
To help them towards
these different point of view.
And mine view is that ...
... your award means a lot for us
from the 'Friends of Europe' ...
... because you are the
guys who really know ...
... how European
political errand ...
... should be shaped
and how shaping it.
So thank
you very much.
One month after the
financial crisis started ...
... in October 2008.,
Jose Manuel Barroso ...
... appointed an independent high
level group on financial supervision.
The group was to
work up proposals ...
... for the regulation of
the financial markets ...
... and to find way out
from the financial crisis.
Eight so-called wise man
were appointed to this group.
Jacques de la Roche, Rainer Masera,
Onno Ruding, Otmar Issing, ...
... Keller McCarthy, Leszek Balcerovitz,
Jose Perez Fernandez and Lars Nuger.
We looked into the independence
of this independent group ...
... and we've found
some astonishing things.
De la Roche is representative
of the financial lobby organization.
Masera is linked to
Lehman Brothers.
Ruding to Citi Group.
Issing to Goldman Sachs.
McCarthy, Nuger and Balcerovitz
are notorious deregulators.
And Perez Ferenandez ...
... works to provide financial
market intelligence to big banks.
Three of the eight are directly
linked to the American banks ...
... all of which were directly
involved in causing the crisis.
Balcerovitz, in addition,
is closely linked ...
... to American right-wing Think
tanks like the Keito Institute.
Which was one of the closest
advisor to the British administration.
He was also involved in
Neoliberal Think tanks ...
... in Brussels and
Poland and the UK.
Not a single of these 'wise' man
wasnt in favor of strict regulation.
Not a single one of them
was really independent.
And the effects of these
eight 'wise' man ...
... on overcoming the financial
crisis were sealed on.
The meeting that happened was
that a lot of public money ...
... was flowing
to the banks.
This whole affair has a
horrible sense of deja vu.
The same financial institutions
that were bailed out ...
... with taxpayers money ...
... are now making a fortune
from Greeces misfortune.
While those same taxpayers
are paying the price ...
... in deep cuts to their
salaries and social services.
After 20 years of
deregulation and liberalization ...
... suddenly the EU herself was
at the edge of been blow up.
What is at stake
is not only the EU ...
... but also Democracy ...
... and future of the
values that we hold dear.
Was it this what
Europeans wanted?
Was it really naive to
have a European dream?
It is in the human nature,
that you have not only good.
You'll always have a
bad side of something.
And we need to make sure
that we keep only the good.
And therefore you
need to be patient.
When you live in a society you
have rules, because otherwise ...
... people will go to
fast on motorways, ...
... because people have no
respect for others, because ...
... stronger will take his place.
This is a human nature.
What have we done to go and
make sure that we live together ...
... is by creating legislations.
By creating an authority
that everyone respect.
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