But mostly citizens never find out exactly who are the people negotiating the paragraphs of hundreds of laws that govern all our lives every year, and who has taken which position. This ignorance is by no means accidental. The fact is that the bulk of the European Union’s legislation takes place in camera – behind closed doors.
It is not the often scolded bureaucrats of the EU Commission or the Members of the European Parliament who are to blame for this. Rather the national Governments of the 27 EU Member States are responsible. They are the ones who control the central legislative body of the EU – the Council of the European Union. There, in more than 150 committees and the ‘Council of Permanent Representatives’, officials, seconded by their national ministries, negotiate what their respective governments are prepared to make of the EU Commission’s legislative proposals. This is the central legislative process that governments systematically keep secret, to ensure citizens do not know what their governments actually do in Brussels.
Emily O’Reilly, the EU Ombudsperson, who was re-elected by the Parliament in December, found clear words for this system: “It’s almost impossible for citizens to follow the legislative discussions in the Council between national government representatives,” she said and concluded: “The practices that inhibit the scrutiny of draft EU legislation undermine citizens’ right to hold their elected representatives to account.” In other words, EU legislators are constantly breaking a central democratic principle, the transparency of legislation. In so doing, they themselves generate the mistrust of many citizens towards the European Union, which is what drives voters to nationalist right-wing populists.
Secrecy also makes the Council particularly vulnerable to the influence of lobbyists. After all, even a blocking minority is enough to block or water down a bill. All it takes to block or water down legislation is to win over the Government of one of the large Member States, which in turn will then make some of the smaller EU states compliant with offers in other areas. This secret lobbying power has caused well over a hundred important reforms to fail over the past ten years, such as the introduction of a turnover tax on speculation with securities or the securing of rights for employees in the new digital economy, without the public even knowing about it.
That is why the Investigate Europe team will be following the Council’s proceedings closely in future and – whenever possible – reporting on which government is blocking or watering down legislative proposals, and with whom it is in league.
Why, for example, is the law on public country-by-country reporting by multinational corporations not progressing? It is intended to oblige transnational companies to report publicly on how much revenue they generate and how much tax they pay in which country? If this were to happen, all the tricks they use to avoid taxes would automatically become transparent, and policymakers would have to do much more. That would simply be sensible, yet the law has been stuck in Council for almost four years. It is common knowledge that the German Government is leading the blockade, but which governments are helping out? Our colleague Paulo Pena looked into this question and came up with some surprising answers, which you can read about for yourself…
Why the Dutch stance at EU discussions is hypocritical
At the EU budget and Coronavirus relief package negotiations held in July 2020, Dutch Prime Minister Mark Rutte took a tough stance. As the leader of the ‘frugal’ camp, he and his allies pushed through extensive cuts which will affect hard-hit states like Italy and Spaniards. Yet, the Dutch position is hypocritical, according to columnist Harald Schumann, given that its own taxation policies have deprived other EU member states of billions of euros.
Germany’s EU presidency and transparency reforms
On the 1st of July 2020, Germany took over the presidency of the European Council of Ministers. During this time, activists will continue to push for greater transparency, but the demands might be too radical for the EU government. Today, the lack of legislative transparency in the Council means that citizens don’t have much access to the positions of national governments before a decision is made.
The Council of Ministers is undemocratic
The European Union was founded on the principles of democracy and openness. However, this is just in name, argues IE’s Harald Schumann, in this opinion piece. The Council of Ministers is notoriously opaque in its proceedings, making its proceedings vulnerable to lobbying and powerful economic interests. This is particularly dangerous when it comes to monetary affairs and regulation of the euro zone.