Business lobbying in the European Union. Oxford University Press, 240 pp, 2021, ISBN 9780199589753.
, , and ,This book opens with an assertion by the authors that its value “lies in its conceptual and empirical capacity” (p. vi)—a large claim, but one which is very well-founded. Combining the political science and business management approaches, it explores the nuances of government-business relations in Brussels in exceptional detail on multiple levels. While the book is relatively short, and dense with both theory and findings, the authors deliver enormous insight for both scholars and practitioners in a very accessible tone.
Private business—sometimes acting unilaterally and competitively as individual companies, sometimes operating in its own right and often through professional intermediaries, sometimes working collaboratively through sectoral and issue associations—interacts with EU regulators and policymakers in multiple institutions and venues, through formal and informal means, across a diverse range of policy domains, using a variety of strategies, tactics and resources. And while business seeks to influence EU decisions, it is at the same time being influenced by those decisions. As the authors note, “the relationship between business and government in the EU has moved from an intermittent state to a continuous exchange” (p. 8). This book skilfully mines this morass of overlapping activity by extracting real intelligence (as opposed to mere information) from three perspectives. At a macro level, the book considers the structural foundations of the relationship, how business approaches vary as the strength of, and balance of power between, the EU institutions has changed following successive Treaty revisions. Second, a meso level analysis looks at business interests within the EU's dynamic policy cycle and arenas. And third, the book offers a most thoughtful and in-depth examination at the micro level of how firms' internal capabilities and resources have affected the ways in which they deal with the EU. This combination produces a vivid and fresh picture of the interconnections between business and the EU, filling a gap noted by the authors thus: “the literature misses perspectives that blend the firm's day-to-day actions with system pre-requisites” (p. 9).
A useful review of development from the EEC to the EU, during which a series of Treaty reforms led to institutional and policy domain expansion, highlights a number of “critical junctures that punctuated the business-government equilibrium” (p. 22). The sheer scale of change over time has been staggering. Consider, for instance, the original incarnation of the European Parliament as an appointed consultative assembly, through the introduction of direct elections in 1979, the expansion in MEP numbers as more nations joined the EU, its increasing willingness to challenge the Commission, the development over time of its control over the EU budget, its progressively more proactive legislative procedures and assertive committees, the growth of its policy expertise from fairly limited beginnings to now covering the entire spectrum of the EU's agenda, its greater role in supervising other institutions.
The infamous thief, Willie Sutton, is (incorrectly) said to have answered, “Because that's where the money is”, when asked why he robbed banks. Similarly, interest organisations will gravitate towards power centres. The authors trace how business interests have over the last 5 decades mirrored the EU's institutional changes. As one institution gained power through a new Treaty, so it would become a higher priority for business lobbying. The authors note, for instance, that business lobbying approaches were “drastically altered” (p. 35) as a result of legislative and procedural changes following the Lisbon Treaty. And the policy influencing environment in Brussels has grown substantially in recent decades. Individual companies and business associations have large numbers of staff in Brussels, who are increasingly consulted by EU officials. Individual businesses and associations have been joined by public affairs agencies, think tanks, law firms, management consultancies. Lobbying strategies have developed over time, with firms running campaigns in Brussels which are supported by efforts in the national capitals of member states; firms have progressively invested more and more resources in their Brussels lobbying teams; firms increasingly focus on both co-operating through industry associations and working alone to build long-term personal relationships with policymakers; advocacy coalitions and grassroots lobbying have become both more numerous and more sophisticated; business interests have made substantial financial donations to politicians and parties.
This book has much to say about the mobilisation of business interests in Brussels. Policymakers' need for detailed policy expertise and information on the likely consequences of policy alternatives; the EU's constant desire to secure its own legitimacy by integrating sectoral and national interests into its sphere; the multi-venue and multi-level opportunities offered by EU institutional arrangements; the expansion of EU competencies; the creation of expert committees and EU agencies—all have generated a demand for policy input and business has sunk ever-greater resources into meeting that demand, as the book demonstrates from a range of survey data and from analysis of the EU's Joint Transparency Register. The authors conclude that “business-government affairs have become co-dependent” (p. 49), taking the form of an “elite pluralism” (p. 52) where major business interests who have proved their trustworthiness over time are given “insider” status by a limited number of senior “gatekeeper” policymakers and pursue a strategic profit-maximising approach to their lobbying, and which has created a market whereby access and information are exchanged.
The book also examines government-business relations from the meso level, that is to say variations in the pattern of activity across the multi-layered policy process. Business interests engage with policy-making at those points in the system where their information and expertise can be most impactful and influential. And, as the authors, highlight, business groups face resource limitations and challenges from counter-vailing interests, so we see “variation in the density and diversity of business mobilization across policy fields, and across the steps of the policy cycle” (p. 86). The key lesson from this section is that business lobbying should be viewed through the prism of rational corporate strategy in a competitive supply–demand exchange. The marketplace of corporate political action in Brussels is a complex and variable arena in which business groups focus their efforts to achieve maximum return.
This section of the book provides an excellent and concise overview of scholarly theory around group legitimacy, policy domains and agenda setting. It goes further by analysing data from the Joint Transparency Register and from MEP surveys to reveal the policy fields which business interests (both with and without a Brussels office) focus on; and by considering groups' efforts directed at the Commission and Parliament, and in closed consultation fora. The book suggests that at this meso level, business takes on a “chameleon pluralism” (p. 105) as it adapts to the nuances and variations on policy systems. The authors give here as clear and intelligible explanation of the EU policy “conveyor belt” (p. 139) as can be found in the literature.
For me, though, it is Part 3 of the book—taking a micro perspective—which really offers the greatest value and it will certainly give practitioners genuinely actionable insight. The examination here of the daily management, structure, staffing and capabilities of in-house government affairs teams in Brussels is really exceptional, and will allow professionals to benchmark their own practice and to derive ideas for enhancing their activities. As the authors note, “The different lobbying venues in the EU require different combinations of resources, which in turn require the adaptation of the organizational resources of the company: this is the role of micro-capabilities” (p. 144). The length and nature of a public affairs manager's experience, their previous roles and work history, their education, their technical expertise, their embeddedness within the company, their relationships with both senior management and external stakeholders, their communication and persuasion skills—all these and more are important factors in their policy effectiveness.
Drawing on data obtained from over 300 Brussels-based government affairs managers and on other surveys by trade associations, as well as on the academic literature on corporate political activity, the book offers a shift towards real-world strategic decisions by companies and the choices they make, both operationally and in terms of human resources. Without wishing to give away too many of the lessons of this analysis—because practitioners really do need to reflect on this material themselves—the authors make clear that public affairs is central to business interests with a short reporting line from the function to the C-suite. Brussels offices are involved not just in Brussels engagement but also in the co-ordination of PA efforts across member state national capitals. There is a most stimulating dissection of the skillset of an EU government affairs manager, reflecting the relatively recent professionalisation of that role, and taking into account the varying development of the government affairs function in companies from established and quite new democracies which themselves possess very different natures along the pluralist/corporatist spectrum. I was especially struck by the comments of one interviewee, who suggests that the ideal PA practitioner should understand about 60% of the technical detail of their company's product/service—more than this, they suggest, means that person would be better employed in an expert role, less than this and they will not be a successful persuader. This “sweet spot” of detailed expertise versus corporate diplomacy is where a PA manager can translate very specific business information into evidence-based policy arguments.
Gender matters in public affairs—indeed, I personally have a long-held prejudice that women tend on the whole to make better lobbyists than men, because of their multi-tasking and communication/relationship skills—as does (particularly in Brussels) a country/national background. Both in terms of the background and perspective of individual members, and the overall make-up of a team, diversity is an important element in the effectiveness of a government affairs unit in Brussels. What appears from the authors' analysis to be significantly less important than popular misperceptions might suggest, is the “revolving door”—this poaching of former policymakers into corporate PA teams is commonplace in many national lobbying systems but remains at a fairly low level in Brussels.
Interviews with Brussels lobbyists suggest that the critical elements of their jobs are: monitoring (anticipating and horizon-scanning for policy developments), gate-keeping (what others have described as the inside-outside communication role, translating company positions for external audiences and feeding stakeholder reactions back into company decision-making), and representation (advocacy and persuasion). The authors assert that, “Companies' EU government affairs offices in Brussels can be understood as the allocation of micro-capabilities in response to the institutional demand at the macro- and meso-levels from the EU” (p. 162). While this conclusion derives from sophisticated methodological analysis, the authors are very deft at articulating their thinking in an accessible language and argument. This is certainly scholarly work, but executed so as to be meaningful to and useable by practitioners.
With 30,000 lobbyists permanently stationed there, and hundreds more arriving daily from national capitals for ad-hoc lobbying meetings, Brussels is the second largest lobbying centre after Washington DC. And the dances which take place there between policymakers and lobbyists are highly complex and highly impactful. I cannot recall the last time I read a scholarly book on lobbying with so much enjoyment, or learning so much from it. The business-government relationship in the EU is exceptional—as indeed is the relationship in each national system. Every lobbying environment has its own informal procedures, rules, culture, traditions and patterns of engagement. But all that is certainly exaggerated at the EU's supra-national level, and this relatively short book conveys the significance and impact of that in compelling depth and breadth. I cannot recommend this book more highly. Whether you are a scholar or a professional interested in how interest groups interact with EU policymakers in Brussels, you will benefit more from this book than from any other.
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