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Transparency in the EU: a state of play

With approximately 30,000 lobbyists, Brussels is known as the world’s second lobbying capital, following Washington D.C. Even though the EU’s relatively small civil service is heavily dependent on the input of stakeholders, voices calling for more transparency have become stronger and stronger. Dr2 Academy explains the state of play of transparency in the EU.

Should transparency be an obligation?

Already since the European Commission’s 2016 proposal for an interinstitutional agreement on a mandatory Transparency Register, the different EU institutions have been debating the form of a ‘one-size-fits-all’ Transparency Register (hereafter: “the Register”). The Register, introduced in 2011, is a database that provides insights into all activities carried out by organizations with the intention of directly or indirectly influencing the decision-making processes of the EU and/or shaping the implementation of existing legislation. The Register has been set up to answer core questions such as what interests are being pursued, by whom and with what budget. The system is operated jointly by the European Parliament and the Commission.

In recent years, the European Parliament and Commission have tried to convince the Council of the EU to become more transparent by applying the Register. Currently, meetings with Commissioners, cabinet members or Commission officials at the helm of the Directorate-Generals need to be registered. In the European Parliament, the use of the Register has also become more of a common practice, in an effort by Members of the European Parliament (MEPs) to increase transparency towards their constituencies. Some MEPs make the presence in the Register a condition to accept meetings. The Council of the EU, however, has been lagging behind: most meetings still take place behind closed doors.

No registration, no meeting?

The most controversial issue in the negotiations is the principle of ‘no registration, no meeting’. This would mean organizations can no longer meet policymakers from the EU institutions if they are not in the Register. Following recent progress in the negotiations (which focused on additional clarity on the future purpose and scope for an enhanced Register), this conditionality will be further discussed in the coming months with all three institutions expressing their intention to reach an agreement as soon as possible. Furthermore, a revised Register is likely to include additional guidelines on virtual communication channels, as the nature of meeting policymakers changed significantly due to the COVID-19 pandemic and subsequent teleworking policies and travel restrictions.

In the meantime, the different political groups in the European Parliament are increasing their transparency efforts. In June 2020, transparency watchdog Transparency International launched a new feature on the EU Integrity Watch, in which it tracks lobby meetings with MEPs. This led to a total of 10,000 logged meetings by the end of September 2020, with the percentage of MEPs reporting their meetings increasing from 37% to 44%.  However, there are internal discrepancies in the consistent usage of the Register. Mainly Scandinavian and Western European countries, as well as the liberal and green political groups are most consistent in their logging of meetings. Pressure from civil society, therefore, seems to work, but an obligation would make these efforts redundant.

A mandatory Register and its implications for Public Affairs

A mandatory Register could relieve lobbying in the EU of its somewhat dubious reputation, as well as enhance citizens’ trust in EU decision-making. Even though it is still unclear what the exact scope of the future Register would be, it is apparent that organizations will have to become more transparent about their activities in Brussels – regardless whether this is due to intrinsic motivation, or due to (mandatory) external obligations.

Organizations engaging in EU Public Affairs should, therefore, consider transparency and ethical interactions with policymakers to be an integral part of their daily work.

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The Dr2 Academy offers a wide range of tailor-made services targeted to organizations and professionals active in public or private sectors and whose work is impacted by EU policies. To learn more, please visit our Dr2 Academy webpage.

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EU Public Affairs in times of COVID-19: three lessons from the Dr2 Academy

EU Public Affairs in times of COVID-19: three lessons from the Dr2 Academy

The COVID-19 pandemic that reached the European continent in the beginning of March this year disrupted the daily life of businesses in countless ways. Apart from serious public health implications, the pandemic has also restricted mobility and forced many Europeans to work from home. As policymakers have to adhere to COVID-19 related restrictions as much as others do, the dynamics of policymaking and advocacy have changed significantly. This requires organizations to adapt the way in which they influence policymaking by engaging in EU Public Affairs. Dr2 Consultants’ Dr2 Academy presents three lessons how COVID-19 changed EU Public Affairs.

1. Digital Public Affairs in times of lockdown

Confinement measures, border closures and epidemiological color coding throughout Europe has severely hampered cross-border mobility, making physical meetings (in Brussels) almost impossible. The Croatian Presidency of the Council of the EU was required to facilitate Council meetings virtually and the European Parliament (EP) changed to remote voting during its plenary sessions. Following a controversial decision by EP President Sassoli earlier this month, Plenary sessions are taking place in Brussels (and not Strasbourg) at least until the end of 2020.

While industry representatives, lobbyists and other stakeholders used to meet Members of the European Parliament (MEPs) in one of the several parliamentary coffee corners, speak to Commission staff around the Berlaymont building or attend various events to broaden their network and get insight information, the nature of these meetings has changed significantly. Nowadays, setting up Zoom or Skype calls with policymakers to discuss the latest information on ongoing files has become an essential instrument for effective EU Public Affairs in times of COVID-19.

Furthermore, events, conferences and receptions moved online too in the form of webinars. Although not a fully-fledged alternative to the spontaneity of physical events, online conferences usually designate a timeslot for networking. Digital meetings pose their own challenges. In order to successfully convey a policy message, the use of PowerPoint presentations and other digital tools have become increasingly important. As the current situation is likely to be maintained, organizations will have to invest time and resources in the effective use of the appropriate digital tools.

2. Changing dynamics in the EU institutions

The reliance on digital meetings and COVID-19 emergency procedures shifted policy priorities, which resulted in delays of several legislative initiatives. In the Council of the EU, where multiple meetings normally take place simultaneously, the Croatian Presidency could (for technical and safety related reasons) only host one meeting at a time. This led to a capacity reduction of 25% at the height of both the pandemic as well as the political cycle. Moreover, Trilogue meetings between the Council of the EU and the European Parliament were preferably not held digitally, leading to additional delays. The European Parliament, which organized extraordinary plenary sessions to vote on COVID-19 related contingency measures, also witnessed postponement of several committee meetings. Flagship events, such as the Digital Transport Days and EU Green Week have all been moved to online environments.

Since policymakers, industry representatives and other stakeholders all deal with the same changing issues and circumstances, organizations are recommended to adapt to changing policy agendas and deadlines, as well as to align KPI’s accordingly. Creativity in maintaining regular contact with (institutional) stakeholders by exploiting the latest digital tools is imperative for effective Public Affairs in times of COVID-19.

3. Adapting to the changing policy agenda

During the initial months of the COVID-19 outbreak, the European Commission focused on managing the short-term effects of the crisis. Crisis management combined with the new way of digital working also caused the Commission to revise its Work Program for 2020. The publication of several initiatives has been pushed back and some have been grouped together. Legislative files with a lower priority have been moved up in their timelines, while more urgent ones got a priority position. Public consultations have in some cases also been extended, enabling more time for input from stakeholders. In general, the measures related to the pandemic have led to a considerable shake-up and accompanying unpredictability of the policy agenda for 2020 and beyond.

To remain on top of the developments in Brussels, it will be crucial for businesses to invest in monitoring the most recent developments and policy agenda changes (Dr2 Consultants offers such monitoring services). This will enable organizations to respond quickly to policy developments and capitalize on the opportunities to represent their interests at EU level.

Dr2 Academy 

Dr2 Consultants’ Dr2 Academy offers services such as EU and Belgium Affairs Trainings, individual coaching to Public Affairs professionals and organizational advice on how to embed Public Affairs within your organization. Dr2 Consultants can be contacted for any questions on how to be effective in times of COVID-19.

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Summer recess – what’s next?

As EU leaders agreed on a new proposal for the new Multiannual Financial Framework and the Recovery Plan on 21 July, the European Parliament was given good food for thought over its summer recess. However, the new long-term budget is not the only priority on the EU agenda. The Commission is already chewing on a series of proposals to be expected later this year and in 2021. In fact, now is the moment to deliver input on some key, planned legislative proposals, as the Commission launched a series of public consultations that are open until after summer. Let’s have a look what is next after the 2020 summer recess.

Transport: smarter and greener

The green and digital transition as the twin priorities of the Von der Leyen Commission are also reflected in the upcoming transport initiatives. To deliver the ambitious European Green Deal climate neutrality objective, the mobility sector needs a 90% emission reduction by 2050. The Strategy for Sustainable and Smart Mobility, expected towards the end of the year, will be the overarching strategy for the delivery of the twin transitions in this area. Stakeholders can contribute to the public consultation until 23 September.

Expectedly, the strategy will include the integration of alternative fuels, in line with the recently published hydrogen strategy that already outlines a pathway for the deployment until 2050 in all modes. The strategy is also complemented by the upcoming FuelEU initiatives for the maritime and aviation sector. The FuelEU Maritime initiative, aimed at boosing alternative fuels in shipping specifically, is open for feedback until 10 September. The public consultation on ReFuelEU Aviation, initially planned for the first quarter of 2020, is still to be expected ahead of the Commission proposal this year.

Sustainability: a bigger role for tax

Taxation will become a more important instrument for the Commission to align consumer choices and business investments with its climate targets. On 23 July, public consultations on both the revision of the Energy Taxation Directive and the creation of a Carbon Border Adjustment Mechanism were launched. Having been unchanged since its adoption in 2003, the Energy Taxation Directive will be subject to a thorough review. The exact changes are yet to be determined based on the consultation outcome, however, what is clear is that it will include a correction of the minimum taxation rates for electricity, gas, and coal, as well as a tax exemption reduction for fossil fuels. The proposal, which is part of the European Green Deal, is scheduled for June 2021. The consultation is open for feedback until 14 October.

In addition, the Commission proposes a Carbon Border Adjustment Mechanism to prevent ‘carbon leakage’. This ‘CO2-tax’ internalizes emissions in the price of a product, so production does not shift to countries with lower climate ambitions. The exact instrument is still to be determined, and could take the form of an EU-wide import tax or an extension of the Emmission Trading System (ETS). The latter has already seen critical responses, as this may not be in line with WTO rules. The Commission plans to scrutinize the issue and present a proposal later this year. The revenues would directly contribute to the ‘own resources’ of the EU budget for the next seven years that would help finance the new €750 billion recovery plan. Stakeholders can deliver their contribution to the plan until 28 October.

Digital: fit for the COVID-19 reality

Following its pledge to make Europe ‘fit for the digital age’, the Digital Education Action Plan and the Digital Services Act are also high on the Commission’s agenda. The Digital Education Action Plan, due to be published in September this year, will be part of the Next Generation EU program. The COVID-19 crisis has seen schools and universities close their doors and increasingly turn to remote, digital teaching. The Action Plan aims to promote high-quality and inclusive education and training in the post-COVID digital reality. Feedback on the proposal can be delivered until 4 September.

Part of the Next Generation EU financing is the digital tax element of the Digital Services Act, to be presented by the end of 2020. The Digital Services Act is an attempt to regulate online platforms when it comes to illegal goods, product safety, political advertising and offensive content. The initiative may face intense debates before its approval, as previous attempts to implement an EU-wide Digital Taxation mechanism have so far been unsuccessful. The consultation remains open until 8 September.

Next steps

The Commission’s proposals on the above initiatives are expected before the end of 2020, except for the Energy Taxation Directive which is due in June next year. From the above-mentioned public consultations, it is evident that the European Commission is gearing up for a busy end-of-year period. Early (proactive) action is desirable for stakeholders that aim to represent their interests on these files, which will also be closely examined by the European Parliament and Council of the EU in 2021 (and later).

Want to know more about the upcoming initiatives, COVID-19, or other files that might affect your business? Please contact Dr2 Consultants to see what we can do for you.

Climate ambitions of Flanders and the European Green Deal

On 21 June, in an interview on Flemish news television VRT, First Executive Vice-President of the European Commission, Frans Timmermans, called on Flanders to be more ambitious in the fight against climate neutrality. However, he also said, he was optimistic that Flanders would do its part being a wealthy region, which already has industrial pioneers on board for the European objectives. But what exactly are the Flemish climate objectives, and how are they aligned with the EU plans?

Greenhouse gas emissions reduction by 35%

The Flemish climate policy plan sets out the guidelines for the climate policy for the period 2021-2030. In line with the objective imposed by the EU for Belgium, the plan puts forward the objective to reduce greenhouse gas emissions in Flanders by 35% by 2030 compared to 2005. However, the EU is setting this goal at a reduction level of 50-55% by 2030. The required effort is identified per sector and, where necessary, the greenhouse gas reduction target is converted into sub-targets. In addition, the plan also contains the main measures required to achieve this objective and puts Flanders on the path towards a low-carbon future.

Energy efficiency

Another priority for Flanders is to increase energy efficiency for all sectors. The three largest energy consumption sectors in Flanders are industry, residential and transport sectors. In addition to improving energy efficiency, simultaneous efforts must be made to achieve the strong development of renewable energy. Energy services and technologies will be digitally controlled and intelligently linked. However, this is a huge challenge for Flanders. In the period 2005-2018, emissions decreased by only 5%. The Flemish Government, therefore, intends to focus more on increasing innovation, the persistence of circular economy, parallel federal policies and additional EU instruments (legislative and financial).

Transforming buildings will also play an important role in increasing the energy efficiency in densely populated Flanders. The climate policy plan encourages the renovation of residential buildings, rebuilding after demolition and making the heating installation more sustainable. This is in line with the EU’s ‘Renovation Wave’ initiative, part of the European Green Deal, with the goal to double the annual renovation rate of the existing building stock. The European Commission will publish communication on this in September 2020.

How can Dr2 Consultants advise you

The EU’s ambition is to lead the way towards a more sustainable future. Contrary to the fear that the COVID-19 pandemic would jeopardize the green agenda for the coming years, the Commission has shown its commitment to accelerate the green transition during the recovery phase. This green transition will pose challenges but will also provide opportunities to businesses, like front runners who can introduce their new and innovative approaches in Flanders. With the Dr2 Consultants’ European Green Deal Impact Scan, we will provide you with a comprehensive analysis of how the European Green Deal will affect your business, identifying the opportunities and challenges and highlighting moments to positively influence the policies and legislation. In addition, we are able to provide you with high-end intelligence on the developments in Flanders that allows for a comprehensive overview of relevant files for your business.

Dr2 Consultants among top EU Public Affairs Consultancies in Brussels

Dr2 Consultants has been shortlisted among the top 60 EU Public Affairs Consultancies in the range of mid-to-large consultancies, published by Best in Brussels. With key sectoral expertise in digital & tech, transport and sustainability sectors, Dr2 Consultants has grown into a well-established consultancy firm and has experienced tremendous growth over the past years.

In 2019, Dr2 Consultants further expanded its client portfolio and grew its team of Public Affairs professionals who provide continuous guidance, support and strategic advice to our clients at both EU and Belgian level.

Furthermore, Dr2 Consultants opened two new offices, in New York City and in Copenhagen which, together with offices in Brussels, The Hague and Shanghai, form part of a network covering three continents and five countries.

In addition, Dr2 Consultants recently launched brand-new services:

  • the European Green Deal Impact Scan that helps companies identify risks and opportunities of new and existing legislation linked to the Commission’s European Green Deal initiatives.
  • the Brexit Office which offers support to organizations from local startups to European associations and corporations planning to settle in Belgium following Brexit.
  • the Dr2 Academy which provides tailor-made coaching for Public Affairs professionals and organizations about the skills and knowledge needed to be successful in the field of EU Public Affairs.

Read our full profile here and get in touch with us for more information on how we can support your business.

 

New offices in NYC and Copenhagen

DR2 Consultants opens offices in Copenhagen and New York, in addition to the existing offices in The Hague, Brussels and Shanghai. With this, DR2 Consultants expands its worldwide network even further.

During the late summer drinks in The Hague, DR2 Consultants presented its annual trend report, which this year is dedicated to global public affairs. Founder and senior partner Frans van Drimmelen indicated in his presentation that he sees a clear increase in the importance of global public affairs, in which policy areas and companies extend across borders.

DR2 Consultants Copenhagen

Your key to the Nordics
From Copenhagen DR2 Consultants focuses on public affairs and corporate communications in the Nordic region and the Baltic States. The new office is managed by Jeroen Lammers. He has extensive experience, including in Denmark, the EU, the OECD, and in the Netherlands, in assisting companies and organizations with substantive analyses and impact strategies.

DR2 Consultants New York

Your key to the world
From New York, DR2 Consultants focuses on global politics and developments, with a special focus on the Sustainable Development Goals (SDGs). The new office will develop public affairs strategies towards international organisations, including the UN and the IMF. DR2 Consultants New York is led by Eelco Keij, who has long-standing experience at the United Nations in international politics, lobbying and fundraising.

Learn why global Public Affairs is on the rise here.