# Presentation: 080359

## American Chamber of Commerce to the European Union

**American Chamber of Commerce ****to the European Union**

**EU Laws: the impact on US business**
**Trade Winds Forum**
**Tuesday May 15th 2007**
**Susan Danger, Managing Director, AmCham EU**

## Road Map

**Road Map**

**Importance of the EU**
**Conceptualising the EU**
**How the EU Works**
**Lobbying in Europe**
**The EU Agenda**

## AmCham EU

**AmCham EU**

*“**The most effective lobbying force in town is commonly considered to be AmCham EU.”*
**The Economist**
*“**You’ve gone beyond being an American Chamber to being an idea center in Brussels, and we value that.”*
**Shaun Donnelly, Assistant USTR**

## Importance of the EU

**Importance of the EU**

**As a market:**
- America’s biggest trade and investment partner
- Close to 500 million consumers in a single market
- GDP per capita $29,400
- Growth potential of the new Member States and strong signs of recovery in established larger Member States
- Single currency
*“**While the $2.5 trillion transatlantic trade and investment is significant, there is room for more growth...”*
**Carlos Gutierrez, Secretary of Commerce**

## Importance of the EU

**Importance of the EU**

**As a policy-maker:**
- The majority of EU laws that affect business in Europe originate in Brussels
- EU policy is becoming increasingly the benchmark for global policy
- The EU-US initiatives mean that policy-making in both continents could become more integrated
*“**European regulations account for 50% of significant rules for business**”*
**Gordon Brown, Chancellor of the Exchequer, UK**

## Conceptualising the EU

**Conceptualising the EU**

**A Comparison with the US System of Governance and Lobbying Practices**
- Socio-Economic
- Legislative Systems
- Lobbying

## EU-US

**Membership**
- EU 27
- US	single nation

**Population**
- EU 27 	492 million
- US	298.5 million

**GDP (PPP)$m**
- EU 27	13,300,413
- US	12,277,583

- Source: Eurostat December 2006, International Monetary Fund 2007

**Land area**
- EU 27	4,336,790 km2
- US	9,630,000 km2

**Exchange Rate**
- $1 = 0.77 €
- €1 = 1.3 $

**Language**
- EU – 23 languages
- US – 1 language

## EU

**EUROPEAN COMMISSION:**** **
**The EU driving force, represents the Community interests**

**EUROPEAN PARLIAMENT:**
**Directly elected Co-legislator, representing EU population**

**COUNCIL OF MINISTERS:**
**Main decision-making body, representing Member States**

**THE PRESIDENT:**** **
**Head of government, represents US interests**

**EU**

**USA**

**HOUSE OF REPRESENTATIVES:**
**Directly elected **
**co-legislator, representing US population**** **

**THE SENATE:**
**Directly elected **
**co-legislator, representing individual States**

**EUROPEAN COURT OF JUSTICE:**** **
**Interprets EU legislation, has judicial review (for Treaties)**

**US SUPREME COURT:**** **
**Interprets US legislation, has judicial review**

**LEGISLATIVE**

**JUDICIAL**

**EXECUTIVE**

**Notes:**
Differences:

-Overall: the EU is NOT a federal structure, it is based on three pillars of governance (Pillar I: Community Policies like CAP, etc. Pillar II: CFSP, Pillar III: JHA)
-This is, therefore, a very rough comparison
	-the Council, for example, retains the role of the executive because, although the Commission has the sole official power to initiate 	legislation, the Member States have an influence on legislation initiation

-Executive: 
Constitutionally, the US executive is much more powerful; 
As an indiviudual, the US President is also much more powerful than the Commission, which is a collegiate body of “equals”
The US president is also more accountable because he/she is directly elected

-Legislative: 
435 Representatives vs. 732 MEPs – decision-taking different
US legislative politicians better paid, better staffed, with more resources than EU ones
US Congress able to initiate legislation
Council retains the role of the executive, legislating and implementing legislation at the national level at the same time
Commissioners are like Ministers/Secretary Generals, each with a Directorate General or “Department” under his/her control 

-Judicial: the EU has yet to ratify its Constitution, so the powers of judicial review are somewhat different

## US vs. EU Lobbying

|  |              USA  |                   EU |
| --- | --- | --- |
| Money | Political fundraising a fact of daily life | Money not an issue; no PACs |
| Transparency | Strict public registration requirements for political donations | High transparency and high profile
French/South European approach: secrecy and low profile
Relationship-driven |
| Grassroots Lobbying
 | Strong and effective
 | Not widespread; greater use of NGOs
 |
| History of Lobbying | Long history = more acceptable | Depending on cultural differences, may be viewed suspiciously and even frowned upon. |
| Constituency Link | Very strong geographic loyalty = individual lobbying more effective | Electoral system of party lists = high national party loyalty, constituency not so important |

**US vs. EU Lobbying**

**Notes:**
Money as biggest difference
In terms of transparency, US approach falls somewhere between the Anglo-Saxon and French/South European one

Overall: because the US Congress is much more powerful that the EU legislative branch, and also because of money/general acceptability of lobbying issues, lobbying can be said to be much more influential in the EU. 

However, lobbying has grown very rapidly since the early 1990s, and is gaining in influence, particularly as the EP’s influence grows. 

Constituency link:
Elections to the EP (in most cases) are from national party lists. For example, the Social Democrats will choose a number of individual party members from across the country that they believe merit to be elected, and will oftentimes also rank them; this way, voters elect parties and not individual MEPs, making the MEPs’ loyalty to the party and not to a constituency. 

## How the EU Works

**How the EU Works**

**The Institutions**
**Recent Changes**

## Brussels – Heart of Europe

**  ****EU Institutions/major centre of political decision-making**

**NGO Community**

**NATO/WEU**

**Industry/****Corporate **
**centre**

**2****nd**** Largest Press Corps in the World**

**Diplomatic Heartland**

**Brussels – Heart of Europe**

## “The Institutional Triangle”

**European Court of Justice**
- Interprets EU legislation
- Guardian of the Treaties

**Econ/Social Committee, ****Committee of the Regions**
- Non-binding opinions & advice

**European Commission**
- Sole right of legislative initiation
- Administers the Treaties

**Council of Ministers**
- Determines policy and priorities

**European Parliament**
- Co-legislator, democratically elected

**European Court of Auditors**
- Financial Conscience
- Independent audit of EU funds

**European Ombudsman**
- Independent investigatory powers

**Notes:**
All of the institutions influence each other: key to find the right leverage for influence 

European Parliament
- Political connections
- National card 
- Emotional debate 

Council: Member State Officials  
- National interests
- Technical discussions 

European Commission 
- National weights
- Technical discussions 

## 	The European Commission

- 	**The European Commission**

**PRESIDENT**
**José Manuel **
**Dur****ã****o Barroso**
** ****(PT)**

**TRADE**
**Peter Mandelson**
**(UK)**

**VICE PRESIDENT**
**TRANSPORT**
**Jacques Barrot**
** ****(FR)**

**VICE PRESIDENT**
**ENTERPRISE & INDUSTRY**
**G****ünther Verheugen (DE)**

**COMPETITION**
**Neelie Kroes**
**(NL)**

**INTERNAL MARKET**
**Charlie McCreevy**
**(IE)**

**ENVIRONMENT**
**Stavros Dimas**
**(EL)**

**Secretariat General**

**Legal **
**Service**

**COMMISSIONER FOR**
** ...**

**25 Commissioners, One per Member State**

**Initiates Legislation**
**Guards the Treaties**
**Manages the Budget**

**Each Commissioner is supported by a CABINET (6 members) **
**and  administrative services called DIRECTORATE GENERALS (DGs) **
**with +/- 16 000 civil servants**

**Notes:**
European Commission 2004-2009

PORTUGAL José Manuel Durão Barroso President
AUSTRIA Benita Ferrero-Waldner External Relations
BELGIUM Louis Michel Humanitarian Aid
CYPRUS Markos Kyprianou Health and consumer protection
CZECH REPUBLIC Vladimir Špidla Employment, social policy
DENMARK Mariann Fischer Boel Agriculture and Rural Development
ESTONIA Siim Kallas Administration, Audit, Anti-fraud Vice-President
FINLAND Olli Rehn Enlargement
FRANCE  Jacques Barrot Transport Vice-President
GERMANY Günther Verheugen Enterprise and Industry Vice-President
GREECE Stavros Dimas Environment
HUNGARY László Kovács Energy
IRELAND Charlie McCreevy Internal Market
ITALY Rocco Buttiglione Justice and Home AffairsVice-President
LATVIA Ingrida Udre Taxation and Customs
LITHUANIA Dalia Grybauskaite Budget
LUXEMBOURG Viviane Reding Information Society and Media
MALTA Joe Borg Fisheries, Maritime Affairs
NETHERLANDS Neelie Smit-Kroes Competition
POLAND Danuta Hübner Regional Policy
SLOVAKIA Ján Figel’ Education and Culture
SLOVENIA Janez Potocnik Science and Research
SPAIN Joaquin Almunia Economic and Monetary Affairs 
SWEDEN Margot Wallström Institutional relations, Communications Vice-President
UK Peter Mandelson Trade

##  The Council of the European Union

**Council of Ministers**
-      National Ministers of the 27 Member States meeting in different compositions

**Committee of Permanent Representatives of Member States to the EU (COREPER) – based in Brussels**

**European Council      **
** **Heads of State or Government**  - **4 meetings per year

**Presidency of the Council**
- (held by one MS, rotates every 6 months)

*Competitiveness Council*

*Employment, Social, Health and Consumer Council*

*The work of the Council is supported by ****Council working groups**** specialized in different areas, made of representatives from national ministries / agencies and/or civil servants from Permanent Representations of the Member States to the EU  *

*Agriculture and Fisheries Council*

**POLITICAL NEGOTIATIONS AND ADOPTION**

**PREPARATORY WORK (technical)**

**TOP-LEVEL NEGOTIATIONS ON POLITICAL TOPICS**

**DRIVES THE AGENDA**
**(INFORMAL INITIATOR)**

**PREPARATORY WORK (political)**

-  **The Council of the European Union**

**Notes:**
Council as the representation of national governments – the Member States’ direct influence in the EU legislative process. 

Because Member States give legislation ideas to the Commission, the Council informally also holds the power of initiation. 

## The European Parliament 

**The European Parliament**

**785 MEPs**

**Bureau**
**1 President**** **
**(Hans-Gert Poettering, EPP-ED - Germany)**
**14 Vice-Presidents**

**Administration**
- 1 Secretariat General
- 8 Directorate Generals
- 1 Legal Service

**8 Political Groups**
**+ Non-attached**

**17 Inter-Parliamentary Delegations**
**(including one for relations with the USA)**

**20 Committees composed of 20-30 MEPs each,**
** ****covering different areas, including:**
**Industry, Research, and Energy**
**Transport and Tourism**
**Environment, Public Health, and Food Safety**
**Legal Affairs**
**Internal Market and Consumer Protection**
**Economic and Monetary Affairs**

**Notes:**
-Co-legislator: most acts passed through co-decision procedure
-Controller
-Budgetary Powers

The Parliament is organised in Committees 
For each legislative proposal, the Parliament decides which Committee will be the responsible for drafting a report. A Rapporteur will then be appointed. 
Rapporteurs are designated as a result of a complex system, which ensures that the various political groupings are assigned a proportionate number of Reports based on their respective representation within the Parliament.
Plenary Sessions of the European Parliament are held in Strasbourg, France (and seldom in Brussels) on a monthly basis.
Key Committees for AmCham: 
Industry, Research, and Energy
Transport and Tourism
Environment, Public Health, and Food Safety
Legal Affairs
Internal Market and Consumer Protection
Economic and Monetary Affairs

## Recent changes in Brussels

**Recent changes in Brussels**

**Bulgarian and Romanian Accession**:
- GDP is approximately 33% of EU average
- 5.5-7% average annual growth rate
- 30 million new citizens (22 ROM, 8 BG)
**Institutional Changes:**
- 23 official EU languages
- 27 Commissioners
- MEPs: 35-ROM, 18-BG (Total MEPs 785)
- Council:
- ROM – 14 votes (of 345)
- BG – 10 votes (of 345)

## Recent changes in Brussels

**Recent changes in Brussels**

**Start of “Triple Presidency” system: **
**	****	****Germany, Portugal, Slovenia**
**German Presidency Priorities**
- Energy & Environment
- Constitutional Treaty
- External relations (Russia, Asia, Transatlantic)
- Internal Market and Competitiveness
- Better Regulation
**Portuguese Presidency Priorities (general)**
- Implementation of the Lisbon Strategy
- Strengthening the area of freedom, security and justice
- Enhancing the external role of the EU
**2008: Slovenia (first new MS to take presidency) and France (post-elections)**

## Recent Changes in Brussels

**Recent Changes in Brussels**

**Midterm Re-Shuffle in European Parliament**
- New  President: **Hans-Gert Pöttering** (DE)
**Joseph Daul** (FR) is new EPP-ED Chair
- New Committee Chairs for key committees
- EPP-ED Group has a comfortable advantage + President
**New Directors-General in the European Commission**
- Internal Market: **Jörgen Holmquist** (SWE, ex DG Fish)
- Regio: Dirk Ahner (DE, ex DG AGRI)
- Fisheries: Fokion Fotiadis (GR, ex Director for Asia)

## Lobbying in Europe

**Lobbying in Europe**

**Levels of lobbying**
**How to be effective**
**Where AmCham EU fits in**

## Levels of Business Lobbying

**Levels of Business Lobbying**

- To be effective companies are active at 3 levels:
- Company
- Sectoral trade associations (vertical)
- Ad hoc coalitions
- Business associations (horizontal)

## Effective Business Lobbying 

**Effective Business Lobbying **
**in the EU**

- Access
- Timing
- Expertise

## AmCham EU – Horizontal Association

**AmCham EU – Horizontal Association**

- “membership-led: membership-driven”
- 139 Member Companies
- 14 Sectoral Committees
- Executive Council of European CEOs
- 3 Task Forces (horizontal groups)
- 4 Working Groups (issue specific subcommittees)
- Secretariat (20 Staff)

## How We Lobby – The Toolkit

**How We Lobby – The Toolkit**

- Position Papers
- Media
- Direct contact / meetings
- Events
- Outreach
- Publications & website

## AmCham EU’s Policy Priorities

**AmCham EU’s Policy Priorities**

**To achieve the right regulatory environment**
**for economic growth in the EU through three**
**drivers:**
- Furthering open markets
- Fostering innovation
- Pursuing balanced sustainable development

## The EU Agenda 2007

**The EU Agenda 2007**

- Priorities for the Institutions
- Key Issues

## Priorities for the Institutions

**Priorities for the Institutions**

- Commission
- European Parliament
- German, Portuguese &
- Slovenian Council Presidencies

- Competitiveness

- Health Strategy

- Financial Services

- Better Regulation

- Energy Supply

- Consumer *Acquis *Review

- ETS

- Climate Change

- Future of Europe Debate

- ResurrectingWTO Talks

- Bilateral Trade Agreements

- Energy Efficiency

- Liberalisation of Energy Markets

## Key issues in 2007

**Key issues in 2007**

**INTERNAL MARKET & CONSUMER POLICY**
- Telecoms Roaming
- Health Services Directive (harmonisation, patient mobility, insurance)
- Better Regulation
- Corporate Governance
- Customs Code Reform

**FINANCIAL SERVICES**
- Wholesale financial services/corporate governance & company law:
- Accounting and auditing
- Asset management
- Hedge funds
- Clearing and settlement
- Retail financial services/insurance:
- Mortgage credit
- Payment services
- Competition inquiries
- Insurance Solvency II** **

**TRADE**
- WTO Negotiations
- China
- EU Anti-dumping Reform
- GCC Free Trade Agreement
- Bilateral trade agreements, especially with Asian states
- Global Europe
- Transatlantic Dialogue
- EU-US Open Skies

## Key issues in 2007

**Key issues in 2007**

**FOOD AND PHARMA**
- Nutrition Strategy
- Nutrition Labelling
- Obesity
- Consumer *Acquis* Review
- Health Strategy
- Pharmaceutical Forum (Information to Patients)
- Animal Testing
- Counterfeit Drugs
- FP7 & Pharma Research

**TRANSPORT, ENERGY & ENVIRONMENT**
- The Energy Package:
- Energy Supply
- Diversification of sources
- Renewable energy
- Energy Efficiency & Climate Change
- Liberalisation of Energy Markets
- Emissions Trading Scheme (+Aviation)
- Waste Framework Directive Review
- Security of Critical Infrastructure
- REACH implementation

**IT**
- Regulatory Framework for Electronic Communications
- Data Transfer: Privacy and Data Protection
- Biometrics and Democracy

## Business Priorities for 2007

**Business Priorities for 2007**

- EU-US – transatlantic market
- Energy
- Innovation
- Implementation and enforcement of legislation

## AmCham EU

**AmCham EU**

**3M EUROPE - ACCENTURE - ACN - AGILENT TECHNOLOGIES - ALCOA EUROPE - AMERICAN INTERNATIONAL GROUP, INC. - AMGEN - AMWAY (EUROPE) LTD. - APPLE - ASDA (PART OF WAL-MART STORES) - AT&T INC. - AVON PRODUCTS - BAKER & MCKENZIE - BARCLAYS BANK PLC - BAXTER WORLD TRADE CORPORATION - BRINK'S EMEA - BRISTOL-MYERS SQUIBB COMPANY - BRITISH AMERICAN TOBACCO - BURSON-MARSTELLER - CARGILL EUROPE - CATERPILLAR - CHEVRON CORPORATION - CHIQUITA - CHUBB INSURANCE COMPANY OF EUROPE - CISCO - CITIGROUP - CLEARY, GOTTLIEB, STEEN & HAMILTON LLP - CONOCOPHILLIPS - CORNING INTERNATIONAL CORPORATION - COVINGTON & BURLING LLP - CREDIT SUISSE - DAIMLERCHRYSLER - DECHERT LLP - DEERE & COMPANY - DOW - DOW CORNING EUROPE - DUPONT DE NEMOURS INTERNATIONAL S.A. - EAMONN BATES EUROPE PUBLIC AFFAIRS - EASTMAN KODAK COMPANY - EDELMAN - EDS - ELI LILLY & COMPANY - EPPA PARTNERSHIP S.C.R.L. - ERNST & YOUNG - EXXONMOBIL PETROLEUM & CHEMICAL - FEDERAL EXPRESS EUROPE - FIRST SOLAR - FLEISHMAN-HILLARD - FOLEY & LARDNER LLP - FOOT LOCKER - FRESHFIELDS BRUCKHAUS DERINGER - GE - GENERAL MOTORS EUROPE - GOLDMAN SACHS INTERNATIONAL - GOOGLE - GRAYLING - HERBALIFE INTERNATIONAL INC. - HEUKING KÜHN LÜER WOJTEK - HEWLETT- PACKARD - HILL & KNOWLTON - HOGAN & HARTSON LLP - HONEYWELL - HOUSTON CONSULTING EUROPE - HUNTON & WILLIAMS - IBM - INTEL CORPORATION - INTERNATIONAL PAPER - IRIDIAN TECHNOLOGIES - JOHNSON & JOHNSON - JPMORGAN - KELLER AND HECKMAN LLP - KIMBERLY-CLARK EUROPE - KRAFT FOODS INTERNATIONAL - KREAB - LEBOEUF, LAMB, GREENE & MACRAE LLP - LINKLATERS - LOCKHEED MARTIN GLOBAL, INC - LOVELLS - LYONDELL - MAREX FINANCIAL LIMITED - MARY KAY INC. - MASTERFOODS - MATTEL EUROPE - MAYER, BROWN, ROWE & MAW LLP - MCDONALD'S EUROPE - MCKINSEY & COMPANY - MERCK SHARP & DOHME - MERIAL - MERRILL LYNCH - MICROSOFT EUROPE - MONSANTO - MORGAN STANLEY INTERNATIONAL - MORGAN, LEWIS & BOCKIUS, LLP - MOTOROLA - NCR - NETJETS - NIKE EMEA - NORTEL - ORACLE - PARTYLITE - PAUL, HASTINGS, JANOFSKY & WALKER (EUROPE) LLP - PEPSICO - PFIZER - PHILIP MORRIS INTERNATIONAL MANAGEMENT S.A. - PITNEY BOWES LTD. - PROCTER & GAMBLE - QUALCOMM - RAYTHEON INTERNATIONAL INC. - ROHM AND HAAS - SABMILLER - SAS – SIDLEY AUSTIN LLP – SKADDEN, ARPS, SLATE, MEAGHER & FLOM - SQUIRE, SANDERS & DEMPSEY LLP - STANDARD & POOR'S/MCGRAW-HILL - STATE STREET - STEPTOE & JOHNSON LLP - SUN MICROSYSTEMS INC. - SYNGENTA INTERNATIONAL AG - THE BLACK & DECKER CORPORATION - THE BOEING COMPANY - THE COCA-COLA COMPANY - THE ESTEE LAUDER COMPANIES INC. - TIME WARNER - UBS - UNITED TECHNOLOGIES CORPORATION - UPS - VAN BAEL & BELLIS - VERISIGN - VERIZON BUSINESS - W.L. GORE & ASSOCIATES GMBH – **
**WEBER SHANDWICK - WESTINGHOUSE ELECTRIC COMPANY - WHIRLPOOL EUROPE – **
**WHITE & CASE LLP – WILMER, CUTLER PICKERING HALE & DORR LLP - YGOMI LLC -**