Brussels vs. the Beltway:

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Lindsey Parks
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1 Brussels vs. the Beltway: Corporate Influence in the US & the EU Christine Mahoney Associate Professor of Public Policy and Politics Batten School of Leadership and Public Policy University of Virginia

2 NYT March 2009 March 30, 2009 Star Lobbyist Closes Shop Amid F.B.I. Inquiry

3 Factions (or special interests) Madison (1787) Federalist No. 10 the most common and durable source of factions, has been the various and unequal distribution of property. Those who hold and those who are without property, have ever formed distinct interests in society.

4 Influence of institutions Institutional design should influence the nature of lobbying in a democratic polity Importantly, the level of democratic accountability that emerges from the institutional structure should play a role in the behavior of interest groups Other institutional aspects of the policymaking process should matter as well

5 The US and the EU Similar historic development trajectories & lobbying communities 17,000 lobbyists registered with the Lobby Disclosure Report Database Activities regulated by: Foreign Agents Registration Act Lobbying Disclosure Act 2007 Honest Leadership & Open Government Act 2009 Obama s executive orders and memoranda

6 The US and the EU Different levels of democratic accountability US - Policymakers directly elected EU - Policymakers not directly elected A Democratic Deficit Commission officials not elected Council members not elected MEPs lack accountability

7 Data Collection 147 Interviews 65 with lobbyists in the US 82 with lobbyists in the EU 47 Issues 21 policy issues in the US 26 policy issues in the EU

8 Issues - US 1. Regulation of Over the Counter Derivatives by the FCTC 2. Water Infrastructure & State Revolving Fund 3. Effluent Limitation Guidelines for Transportation Equipment Cleaning 4. Medicare funding for Optometric Clinical Education Training 5. Student visas & laboratory security within Antiterrorism Legislation 6. Disabled recipients with TANF reauthorization 7. Human Cloning Prohibition Act 8. Funding for a replacement for the (Electronic Attack) EA-6B Prowler 9. US Farm Bill 10. Wind Energy Tax Credit in Energy Bill 11. Smart Growth and Transportation reauthorization 12. CAFE (Corporate Average Fuel Economy) Standards 13. Basic Education Funding for Developing Countries 14. PURPA repeal within Energy Bill 15. Recreation Marine Employment Act 16. Federal Public Safety Officers amendment to the Affordable Housing Act 17. Regulations on Relationships among affiliated gas and electric companies 18. Funding for K-12 Math and Science teachers 19. INS funding for Cystic Fibrosis Research 20. Expensing Stock Options Regulations 21. Modification of the Food Quality Protection Act

9 Issues - EU 1. Internet & Telephone Data Retention 2. Outermost Regions 3. PHARE funds 4. REACH Chemicals Regulation 5. Auto Liberalization Implementation 6. Social Dialogue on Crystalline Silica in the Workplace 7. Services Directive 8. Services of General Interest Framework Directive 9. Getting Public Health on the EU Agenda 10. Community Clause in Bilateral Member State Aviation Agreements 11. Redefinition of the Development Heading in the EU Budget 12. EU Standardization of Cold Storage Rooms 13. Aromatic Oils in Extender Oils and Tires 14. International Codex on Fruit Juice 15. Reduced VAT for construction sector 16. CAFÉ (Clean Air for Europe) 17. Packaging Environment Indicator in Packaging and Packaging Waste Policy 18. Co-financing NGOs 19. Consumer Credit Directive 20. Communication on Business Organization 21. Self Regulation of Alcohol Ads 22. Telecoms Liberalization Implementation 23. Integrated Product Policy 24. Live Animal Transport 25. Piracy of Conditional Access TV 26. Trafficking in Children

10 Lobbying Success in US & EU 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Did Not Attain Partially Attained Fully Attained Goal US EU

11 Lobbying Success by Scope US Achieved All EU Achieved All Niche Large Sector Multi-Sector System-wide

Lobbying Success by Salience 50% 40% 30% Fully Attained Goal 20% 10% 0% 0 stories 1-5 stories 6-50 stories 51 or more Fully Attained Goal *Pearson chi-square:

12 Lobbying Success by Salience 50% 40% 30% Fully Attained Goal 20% 10% 0% 0 stories 1-5 stories 6-50 stories 51 or more Fully Attained Goal *Pearson chi-square: significant at.01 level 70% 60% 50% 40% 30% 20% 10% 0% Fully Attained Goal 0 stories 1-2 stories 3 or more Fully Attained Goal *Pearson chi-square: significant at.001 level

13 Lobbying Success by Group Type 100% 90% 80% 70% 60% 50% 40% US EU 30% 20% 10% 0% Ci/zen Founda/ons Trade Corpora/on

70% 60% 50% *Pearson chi-square: significant at.

14 Lobbying Success by Policy Goal United States 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Status quo Policy Change 90% 80% European Union No Success Any Success 70% 60% 50% *Pearson chi-square: significant at.01 level 40% 30% 20% 10% 0% Status quo Policy Change No Success Any Success *Pearson chi-square: significant at.1 level

15 Lobbying Success by Group Type 100% 90% 80% 70% 60% 50% 40% US EU 30% 20% 10% 0% Ci/zen Founda/ons Trade Corpora/on

16 Conclusions Institutional, issue and interest group factors all have implications for lobbying success The US system leads to more winner take all outcomes, with business more often than not succeeding in their lobbying goals The EU tends toward compromise

17 Citizens United vs. the FEC Supreme court overturned (5-4) a provision of the 2002 Bipartisan Campaign Reform Act which prohibited all corporations, both for-profit and non-profit from broadcasting electioneering communications The majority opinion argued that Congress could not suppress political speech in newspapers, books, televisions and blogs since it was protected by the first amendment

18 Citizens United vs. the FEC The dissenting opinion concluded: At bottom the Court s opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt. Ralph Nader (Public Citizen): With this decision, corporations can now directly pour vast amounts of corporate money, through independent expenditures, into the electoral swamp already flooded with corporate campaign PAC contribution dollars

19 Citizens United vs. the FEC The New York Times: The Supreme Court has handed lobbyists a new weapon. A lobbyist can now tell any elected official: If you vote wrong, my company, labor union or interest group will spend unlimited sums explicitly advertising against your re-election. Newsweek: the most serious threat to American democracy in a generation

20 Recommendations Re-introduce a bill similar to the Bipartisan Campaign Reform Act to encourage the overturning of Citizens United Advocate for stricter enforcement of the Lobby Disclosure Act and the Honest Leadership & Open Government Act Increase policing of registration by lobbyists with the Clerk {Innovative strategies for this include public-public partnerships} Require lobbyists registering with the Clerk to list specific bills on which they are lobbying listing energy policy should not count as compliance {this will make it easier for watchdog groups like Open Secrets to do their job} Public financing of elections

Secretary of the Senate Office of Public Records 232 Hart Building Washington, DC

Clerk of the House of Representatives Legislative Resource Center 135 Cannon Building Washington, DC 20515 http://lobbyingdisclosure.house.gov Secretary of the Senate Office of Public Records 232 Hart