Sittings · Document
On the proposal for a directive of the European Parliament and of the Council establishing harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries and amending Directive (EU) 2019/1937
Committee on Legal Affairs · Rapporteur: Guy Lavocat
SHORT JUSTIFICATION
Protecting the EU and its Member States from foreign interference is vital to the protection of democracy and our institutions. There are many ways in which third countries can influence public debate, law-making and political decision-making, and not all of them involve direct intervention.
In order to prevent any circumvention of the Directive, I am extending its scope to include attempts to exert direct and indirect influence, specifying that they can also target specific elections or public decisions and can take the form of cultural or religious exhibitions, mobilisation and creation of networks, particularly political networks, cultural, religious or language centres, centres within universities and think tanks (e.g. undeclared sponsoring of events presented as scientific and morally neutral).
Many European countries do not have a transparency system for the activity of third country entities in their territory, and the EU’s interinstitutional system can be improved. Nonetheless, those European countries that have already put in place transparency mechanisms that respect the rule of law and EU values should not lower their ambitions. I am therefore introducing changes concerning both the requirement for maximum harmonisation and the single registration mechanism covering the entire Union.
AMENDMENTS
The Committee on Legal Affairs calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to take the following into account:
Amendment 1
Proposal for a directive
Recital 36
| Text proposed by the Commission | Amendment |
| (36) Where the entity carrying out interest representation activities on behalf of a third country entity is established in several Member States, registration should only take place in the Member State where the entity has its main establishment. The main establishment of the entity should be understood as the place where the entity has its head office or registered office within which the principal economic activities and operational control are exercised. | (36) Where the entity carrying out interest representation activities on behalf of a third country entity is established in several Member States, it must be registered in the national registers of the Member States where it carries out representation activities, irrespective of where it has its main establishment in the Union. |
Or. fr
Justification
This aims to ensure that the national authorities will have a contact point in the country where the influence activity takes place so as not to undermine existing mechanisms that include this requirement.
Amendment 2
Proposal for a directive
Recital 42
| Text proposed by the Commission | Amendment |
| (42) Once they are registered in the Member State of their place of establishment, registered entities should not be required to register in other Member States, including when they launch an interest representation activity there. However, to facilitate the access by public officials to information on entities carrying out interest representation activities with whom they might interact, other Member States where such activities will be carried out should include, in their own national registers, the names of the registered entities concerned, their EIRN, and the link to the information contained in the national register of registration made publicly available. | deleted |
Or. fr
Justification
This aims to ensure that the national authorities will have a contact point in the country where the influence activity takes place so as not to undermine existing mechanisms that include this requirement.
Amendment 3
Proposal for a directive
Article 1 – paragraph 1
| Text proposed by the Commission | Amendment |
| This Directive lays down harmonised requirements in relation to economic activities of interest representation carried out on behalf of a third country entity, with a view to improving the functioning of the internal market by achieving a common level of transparency across the Union. | This Directive lays down harmonised requirements in relation to economic activities of interest representation carried out on behalf of, or under the supervision or control of, a third country entity, with a view to improving the functioning of the internal market, combating foreign interference and protecting democracy by achieving a high level of transparency across the Union. |
Or. fr
Amendment 4
Proposal for a directive
Article 1 – paragraph 2
| Text proposed by the Commission | Amendment |
| The purpose of this Directive is to achieve that transparency in such a manner as to avoid creating a climate of distrust apt to deter natural or legal persons from Member States or third countries from engaging with or providing financial support to entities carrying out interest representation on behalf of a third country entity. | The purpose of this Directive is to achieve that transparency in such a manner as to ensure respect for the Union’s values by avoiding and preventing the effects of undeclared influence activities of third countries in the Union and its Member States. It seeks to create a climate of trust and transparency for natural and legal persons, and not to prohibit or discourage interest representation by third countries within the Union. |
Or. fr
Amendment 5
Proposal for a directive
Article 2 – paragraph 1 – point 1
| Text proposed by the Commission | Amendment |
| (1) ‘interest representation activity’ means an activity conducted with the objective of influencing the development, formulation or implementation of policy or legislation, or public decision-making processes, in the Union, which could in particular be performed through organising or participating in meetings, conferences or events, contributing to or participating in consultations or parliamentary hearings, organising communication or advertising campaigns, organising networks and grassroots initiatives, preparation of policy and position papers, legislative amendments, opinion polls, surveys or open letters, or activities in the context of research and education, where they are specifically carried out with that objective; | (1) ‘interest representation activity’ means an activity conducted with the objective of directly or indirectly influencing the development, formulation or implementation of policy or legislation, elections, a specific public decision or public decision-making processes in the Union and its Member States. That activity could in particular be performed through organising or participating in meetings, conferences, cultural or religious exhibitions or events, contributing to or participating in consultations or parliamentary hearings, organising communication or advertising campaigns, organising or mobilising networks such as diaspora networks, cultural, religious or language centres or grassroots initiatives, support for the creation and financing of political parties, preparation of policy and position papers, legislative amendments, opinion polls, surveys or open letters, or activities in the context of research and education, notably within universities and research centres; |
Or. fr
Amendment 6
Proposal for a directive
Article 2 – paragraph 1 – point 3
| Text proposed by the Commission | Amendment |
| (3) ‘interest representation service provider’ means a natural or legal person that provides an interest representation service; | (3) ‘interest representation service provider’ means a natural or legal person that provides an interest representation activity; |
Or. fr
Amendment 7
Proposal for a directive
Article 2 – paragraph 1 – point 4 – point a
| Text proposed by the Commission | Amendment |
| (a) the central government and public authorities at all other levels of a third country, with the exception of members of the European Economic Area; | (a) the central government and public authorities at all other levels of a third country, with the exception of the member countries of the European Economic Area; |
Or. fr
Amendment 8
Proposal for a directive
Article 2 – paragraph 1 – point 5
| Text proposed by the Commission | Amendment |
| (5) ‘ancillary activity’ means an activity that supports the provision of an interest representation activity but has no direct influence on its content; | deleted |
Or. fr
Amendment 9
Proposal for a directive
Article 2 – paragraph 1 – point 6 – point a
| Text proposed by the Commission | Amendment |
| (a) the total annual remuneration received from a third country entity for the provision of an interest representation service, consisting, where the remuneration is non-pecuniary, of its estimated value; or | (a) the total annual remuneration received from a third country entity for the provision of an interest representation activity, consisting, where the remuneration is non-pecuniary, of its estimated value; or |
Or. fr
Amendment 10
Proposal for a directive
Article 2 – paragraph 1 – point 9
| Text proposed by the Commission | Amendment |
| (9) ‘authority responsible for the national register’ means the public authority or body responsible for maintaining a national register as referred to in Article 9 and processing registrations submitted pursuant to this Directive; | (9) ‘authority responsible for the national register’ means the independent public authority or independent body responsible for maintaining a national register as referred to in Article 9 and processing registrations submitted pursuant to this Directive; |
Or. fr
Amendment 11
Proposal for a directive
Article 3 – paragraph 1 – point a
| Text proposed by the Commission | Amendment |
| (a) an interest representation service provided to a third country entity; | (a) an interest representation activity provided to a third country entity with a view to promoting its interests; |
Or. fr
Amendment 12
Proposal for a directive
Article 3 – paragraph 2 – point c
| Text proposed by the Commission | Amendment |
| (c) ancillary activities. | deleted |
Or. fr
Amendment 13
Proposal for a directive
Article 4
| Text proposed by the Commission | Amendment |
| Article 4 | deleted |
| Level of harmonisation | |
| Member States shall not maintain or introduce, for interest representation activities falling within the scope of this Directive, provisions diverging from those laid down in this Directive, including more, or less, stringent provisions to ensure a different level of transparency of those activities. |
Or. fr
Justification
Establishing an upper threshold for harmonisation would require those countries with national mechanisms that already work well and respect the Union’s values to lower their ambitions.
Amendment 14
Proposal for a directive
Article 5 – title
| Text proposed by the Commission | Amendment |
| Identification of the recipient of the service | Identification of the recipient of the interest representation service |
Or. fr
Amendment 15
Proposal for a directive
Article 5 – paragraph 1
| Text proposed by the Commission | Amendment |
| Member States shall ensure that interest representation service providers have the possibility to require the entity on whose behalf the service is provided to declare whether it is a third country entity. | Member States shall ensure that interest representation activity providers have the possibility to require the entity on whose behalf the activity is performed to declare whether it is a third country entity. |
Or. fr
Amendment 16
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1
| Text proposed by the Commission | Amendment |
| Member States shall ensure that an entity referred to in Article 3(1) established in their territory registers in a national register at the latest when the interest representation activities are commenced. | Member States shall ensure that an entity referred to in Article 3(1) performing interest representation activities in their territory registers in a national register at the latest when the interest representation activities are commenced. Member States shall make every effort, where technically possible, to set up one-stop shops to facilitate registration in several national registers. |
Or. fr
Amendment 17
Proposal for a directive
Article 10 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. If an entity referred to in Article 3(1) is established in more than one Member State, it shall register in the Member State of its main establishment. | deleted |
Or. fr
Amendment 18
Proposal for a directive
Article 10 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. If an entity referred to in Article 3(1) is not established in the Union, it shall register in the Member State where its legal representative designated pursuant to Article 8 is established or, in the absence of a place of establishment, has his or her permanent address or usually resides. | deleted |
Or. fr
Amendment 19
Proposal for a directive
Article 11 – paragraph 6
| Text proposed by the Commission | Amendment |
| 6. Registered entities shall not be subject to any further registration requirements in any other Member State for activities falling within the scope of Article 3(1). | deleted |
Or. fr
Amendment 20
Proposal for a directive
Article 15 – paragraph 7
| Text proposed by the Commission | Amendment |
| 7. Member States shall ensure that the national authorities designated pursuant to paragraph 1 have all necessary means to carry out the tasks assigned to them under this Directive, including sufficient technical, financial and human resources. | 7. Member States shall ensure that the national authorities designated pursuant to paragraph 1 have inquiry and investigative powers and all necessary means to carry out the tasks assigned to them under this Directive, including sufficient technical, financial and human resources. |
Or. fr
Amendment 21
Proposal for a directive
Article 16 – paragraph 5
| Text proposed by the Commission | Amendment |
| 5. Where a supervisory authority other than the supervisory authority of the Member State of registration considers that any of the conditions set out in paragraph 3 are met, it may ask the supervisory authority of the Member State of registration to request records kept in accordance with Article 7 from the registered entity. | deleted |
Or. fr
Amendment 22
Proposal for a directive
Article 16 – paragraph 6
| Text proposed by the Commission | Amendment |
| 6. Upon receipt of a request pursuant to paragraph 5 and if it considers that the conditions laid down in paragraphs 3 are met, the supervisory authority of the Member State of registration shall make a request in accordance with paragraph 3 and transmit the information received to the requesting supervisory authority. If the supervisory authority of the Member State of registration has, within the previous 12 months, made a request in accordance with paragraph 3 covering the same information from the same registered entity, it shall transmit the information to the requesting supervisory authority without having to make a new request. | deleted |
| If the supervisory authority of the Member State of registration considers that the conditions laid down in paragraph 3 are not met, it shall provide the requesting supervisory authority with a reply explaining the reasons for not requesting or transmitting the information in question. |
Or. fr
Amendment 23
Proposal for a directive
Article 19 – paragraph 2 – point a a (new)
| Text proposed by the Commission | Amendment |
| (aa) facilitate the cooperation of the supervisory authorities, the coordination and alignment of the registration, sanctioning and supervisory practices of the competent national authorities, and, as appropriate, the sharing of information pursuant to Article 18; |
Or. fr
Amendment 24
Proposal for a directive
Article 19 – paragraph 6 a (new)
| Text proposed by the Commission | Amendment |
| 6a. The Commission may invite other Union bodies, agencies and advisory groups to the meetings, as appropriate, where the issues discussed are of relevance to them. |
Or. fr
Amendment 25
Proposal for a directive
Article 22 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. The maximum amount of the financial sanction referred to paragraph 1 that may be imposed shall be, for undertakings, 1 % of the annual worldwide turnover in the preceding financial year, for other legal entities, 1 % of the annual budget of the entity in accordance with the most recent financial year closed and for natural persons, EUR 1 000. | 2. The maximum amount of the financial sanction referred to paragraph 1 that may be imposed shall be, for undertakings, 6 % of the annual worldwide turnover in the preceding financial year, for other legal entities, 6 % of the annual budget of the entity in accordance with the most recent financial year closed and for natural persons, EUR 30 000. |
Or. fr
Amendment 26
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 2
| Text proposed by the Commission | Amendment |
| That evaluation shall assess the effectiveness and proportionality of the Directive. It shall assess among others the need for changes to the scope and the effectiveness of the safeguards provided in the Directive. It may, where appropriate, be accompanied by relevant legislative proposals. | That evaluation shall assess the effectiveness and proportionality of the Directive. It shall assess among others the need for changes to the scope, cross-border cooperation and the effectiveness of the safeguards provided in the Directive. It may, where appropriate, be accompanied by relevant legislative proposals. |
Or. fr
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the draft report:
| Entity and/or person |
| Transparency International EU – Brussels Office |
| Permanent Representation of France to the EU |
| French High Authority for Transparency in Public Life (HATVP) |
| European Commission, DG JUST, Democracy, Union Citizenship and Free Movement Unit (JUST.C.4) |
| Nathalie Loiseau MEP, Chair of the SEDE Committee and INGE coordinator for the Renew Europe Group |
The list above is drawn up under the exclusive responsibility of the rapporteur.