Brussels, 11/07/2016 (Agence Europe) - The decision of José Manuel Barroso, former President of the Commission, to join the merchant bank Goldman Sachs has caused a wave of indignation, but the current Commission announced on Monday 11 June that this 'revolving door' move complied with the rules and Treaties of the EU.
“The Commission has very strict rules in force, particularly compared to those which exist in many member states and other international organisations”, said Commission spokesperson Margaritis Schinas, at a press conference in Brussels. Under the Commissioners' Code of Conduct, former Commissioners are obliged to notify the Commission, in the 18 months following the end of their office, of the activities they intend to carry out following their position in the institution. The Commission decides whether or not to authorise these new positions in the private sector, on the basis of the opinion of the Ad Hoc Ethical Committee.
After this cooling-off period of 18 months, “there is a reasonable assumption that access to privileged information or possible influence are no longer an issue, so former College members are no longer obliged to notify” the Commission of their new positions, the spokesperson said. Then, the rules of transparency apply and former Commissioners are no longer bound by an obligation of integrity, discretion and professional secrecy, in line with article 245, paragraph 2 and article 339 of the Treaty, Schinas explained. “These obligations exist for all members of the College and for those who have had the honour and privilege of residing over the Commission”, he went on to stress.
The former President of the European Commission telephoned Jean-Claude Juncker to inform him of his appointment with the American merchant bank, which played a part in triggering the financial crisis of 2008 and in making the Greek debt situation worse. Such a 'revolving door' may feed into anti-European sentiments and discourse, a few weeks after the United Kingdom voted for 'Brexit'.
“Juncker was informed after the decision was announced. There is no formal obligation of prior notification”, Schinas said in response to questions from journalists. He went on to say that it is not Juncker's usual practice to “comment on decisions made by his predecessors”.
The Commission spokesperson went on to say that Barroso had given up his temporary indemnity as a former member of the College of the Commission with effect from January 2015.
No need for Code of Conduct to be revised. The Commission spokesperson went on to say that the Code of Conduct, which dates from April 2011, was strict enough and did not need to be reviewed because of this appointment.
The Code of Conduct for Commissioners stipulates that when they are planning to engage in professional activities during the 18 months after they have ceased to hold office, former members of the Commission must notify the Commission of this in a timely fashion, giving at least four weeks' notice as far as possible. The Commission then examines the nature of the planned activities.
If the planned activities are related to the portfolio of the Commissioner, the Commission seeks the opinion of the Ad Hoc Ethical Committee. Depending on the conclusions of the Committee, it decides whether the planned activities are compatible with the provisions of article 245 of the Treaty.
During the 18 months after they cease to hold office, former members of the Commission must not lobby or defend the cause of their business, client or employer with members of the Commission and their staff on matters for which they were responsible within their portfolio as member of the Commission during their mandate.
Criticism rife. The French PS members of the European Parliament described as “scandalous” this new “revolving door, which looks very much like a conflict of interests”. They are calling for a revision of the rules to prevent similar appointments. Lisbon, within the ranks of the Socialist party in power, expressed similar indignation.
The MEP Sylvie Goulard (ALDE, France) said that it behoved the French President, German Chancellor and other national leaders, notably the Portuguese leader, “publicly to express their disapproval. They could call upon Barroso to resign and, if he refuses to listen, tell them that he would find their doors closed to him”, she said. Barroso is retroactively damaging the image of the Commission, said Sven Giegold (Greens/EFA, Germany), calling for a three-year “cooling-off period” for former Commissioners. Eva Joly (Greens/EFA, France) called for the anti-revolving door rules to be toughened up by increasing them from 18 months at the moment to 36 months.
João Ferreira (GUE/NGL, Portugal), who referred to the matter as a “shameless” conflict of interests, said that the matter confirmed the “promiscuity and fusion” that exists between the European institutions and major financial institutions. (Original version in French by Lionel Changeur)