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Goldman Sachs. Barroso violates his commitments not to lobby

(B2) José-Manuel Barroso's situation continues to cause a stir. The former president of the European Commission met, discreetly, at the end of October, in a hotel in Brussels, the vice-president of the European Commission, Jyrki Katainen.

The affair, revealed by the NGOs gathered within the Alter-EU network, was confirmed on Tuesday by the spokesperson for the European Commission who, however, wishes to downplay the importance of the meeting.

A 'religious' follow-up of legality!

This meeting took place on October 25 — confirmed this Tuesday (February 20) — the spokesperson for the Commission, Margaritis Schinas, during Midday, the daily press briefing of the European executive. But for the spokesperson, there is no problem. " Twenty-four hours after this meeting, Vice-President Jyrki Katainen [in charge of Jobs, Growth, Investment and Competitiveness] published this meeting according to the procedure in the EU Transparency Register. " Legality was followed. " He has " religiously follow the legality parameters that apply ».

A request from Barroso himself

« The meeting responds to a request from Mr Barroso himself and was agreed by telephone with my cabinet “indicated, for his part, Jyrki Katainen in a letter addressed to NGOs (Alter-EU and Corporate Europe Observatory CEO) campaigning for more transparency in European institutions. She got " held at the Hotel Silken Berlaymont », which is a stone's throw from the Commission (1). This discussion was about mainly on trade and defense ».

Without witness, without note, without document

« We were both, without other participants in this meeting assured. Unfortunately, no document confirms the commissioner's statements. " I don't usually take notes in this type of meeting. And I didn't either in this meeting. For these reasons, there are no documents concerning this event. ».

A questionable passage

The former Portuguese Prime Minister had passed, in 2016, just after the end of his latency period, with weapons and baggage (experience, knowledge and networks), to the investment banker Goldman Sachs. This passage (by a banker whose role in the financial crisis of 2008) had caused a small uproar, both within the institution and in public opinion, because it was akin to a betrayal of the European ideal . It had given rise at the time to an opinion, rather embarrassed, from the house ethics committee. No rules had been violated, it was rather the former president's moral attitude that had been reproved (read: José-Manuel Barroso buys a diamond slipper at the expense of Europe).

A commitment not to lobby

"JI have not been engaged to lobby on behalf of Goldman Sachs nor do I intend to. “, had however indicated the person concerned, at the time, in a letter to the President of the European Commission Jean-Claude Juncker. " This commitment meets the duty of integrity and discretion imposed by the Treaty “was then welcomed the ethics committee (Read: Ethics over the shoulder of the Juncker Commission).

« I have not been engaged to lobby on behalf of Goldman Sachs and I do not intend to do so”

A complaint from NGOs

The NGOs grouped within Alter EU, have decided to lodge a complaint with the Secretary-General of the Commission, Alexander Italianer (2). " The body should this time carry out a more in-depth investigation into Mr Barroso's role with Goldman Sachs and assess whether the former president misled President Juncker », they underline (download the letter of complaint).

Comment: Very troubling circumstances

The circumstances of the meeting, discreet, in a nearby hotel, without taking notes, without witnesses, are extraordinary to say the least. Given the personality of the former president and the controversy surrounding his arrival at Goldman Sachs, the least caution would have been to have a third party present, to record all the elements to dispel all possible doubts. The thesis of "move on, there is no problem" defended by the Juncker Commission could then have been credible. In this case, it seems very fragile.

As for the topics considered, mainly trade and defence, this cannot be considered a simple request for information. We know how today the question of access by third countries to future defense programs is a crucial issue for all third countries or future third countries — such as the United Kingdom or the United States. The recent controversy at the meeting of NATO Defense Ministers has proven this.

All data on this subject is normally public. We are therefore indeed in the context of a request from the private interest to influence public affairs. Taking refuge behind a pseudo-legality is therefore very delicate. We are in a primarily political questioning. Why was it so important for Barroso to see Katainen and vice versa? The Juncker Commission would do well to quickly shed light on this issue.

(Nicolas Gros-Verheyde *)

(1) A very practical place, since it is located a few tens of meters from the Commission, and makes it possible not to have to receive J.-M. Barroso in the premises of the Berlaymont.

(2) Alexander Italianer is himself a former member of the Barroso cabinet. He was also Deputy Secretary General of the Commission from 2006 to 2010 (during the mandate of J.-M. Barroso in charge of "Better regulation" (in other words the work of deregulation), one of the favorite subjects of the former -president.

* Paper completed with some elements from AFP on the aspect of Barroso's commitments

Nicolas Gros Verheyde

Chief editor of the B2 site. Graduated in European law from the University of Paris I Pantheon Sorbonne and listener to the 65th session of the IHEDN (Institut des Hautes Etudes de la Défense Nationale. Journalist since 1989, founded B2 - Bruxelles2 in 2008. EU/NATO correspondent in Brussels for Sud-Ouest (previously West-France and France-Soir).

One thought on “Goldman Sachs. Barroso violates his commitments not to lobby"

  • Hughes Belin

    Thank you for this article which sums up the whole thing very well. It is not fueling the conspiracy theory to denounce this kind of practice. It exists on a large scale, so much so that Nassim Nicholas Taleb (the only one to have foreseen the financial crisis of 2007) identified it in his excellent opus Antifragile (p522). He calls it “the Alan Blinder problem” (from the name of a former high-ranking American official who took advantage of the system he had put in place, as soon as he left the American Administration): (1) Using a posteriori the privileges linked to his previous functions at the expense of the citizens. (2) Violate moral standards while fully abiding by the law; confuse ethics and law. (3) A regulator's interest in creating complicated rules in order to later sell his “expertise” to the private sector. Here, it's “full box” for Barroso!

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