Lobbying in the EU keeps growing.
We've poineted out large companies are spending a growing amount on lobbying in the US, secure in the expectation that every $100,000 spent will bring back a million or more in terms of tax abatements, government contracts, rewording of legislation, and other corporate welfare goodies. And of course, it is the biggest, richest companies - usually oligopolies - that spend the most.
At least that has been the case in Washington, where pay-to-play is alive and well. Even with über-lobbyist Jack Abramoff behind bars. Now according to a BusinessWeek article, that lobbying presence is even bigger in Brussels, where the European Commission (EC) sits. The author of the story ("Why Brussels Is Abuzz with Lobbyists," 10/29/07) notes that the interest of multinationals in the EU governing body has grown as they have taken increasingly more regulatory power out of the member countries. "If you thought Washington was lobbying central, think again. Some 15,000 lobbyists ply their trade in Brussels, the EC estimates, vs. the 11,660 who have reported lobbying in the U.S. capital this year." And as the EU economy surpasses the US one, the stakes in the lobbying game are getting bigger and bigger.
What lobbyist face, however, is very different from what US lobbying experts are familiar with. The EU, as the article points out, has been less willing to roll over and play dead for big corporations. For example, "this year the EC's antitrust watchdog has hit corporations with $3.6 billion in cartel-busting fines, nearly eight times the total levied by the U.S." As Microsoft, Apple, and Qualcomm can attest, Europeans are less dogmatic about the Darwinism of the free market, keeping companies form cellphone providers and utility companies to keep from abusing their power.
But the biggest obstacle to lobbying efforts in the EU is the fact that no-one is courting campaign contributions. "EU leaders are either appointed or elected in taxpayer-financed campaigns." So there are meals, junkets, and doubtless the occasional escort, but, on the whole, it's not as easy to buy EC officials as US ones.
For large multinational companies, however, getting some leverage on European policies is a must - especially with the new domination of the euro. For a Dell, a Monsanto, a Pepsico, what goes on in Europe is more critical than ever. Companies that want to dominate world markets have to have a presence in Europe, and are far more likely to have their doings noted and regulated than in George Bush's America.
4:17:46 PM
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