Debate: Institutions and bodies in the Economic and Monetary Union: Preventing post-public employment conflicts of interest
Date: THURSDAY, 16 JANUARY 2020
Speaker: Janez Lenarčič
Language: EN

First of all, the representative of the Commission on the Board of Supervisors, who, I repeat, does not have voting rights, tried to get restrictions which were as strict as possible because there was indeed the finding that this case involved a conflict of interest. The Board of Supervisors looked very carefully into this matter and was of the view that the conflict of interest could be managed by imposing additional restrictions, such that go beyond the minimum condition applied to senior officials. So the length of the period prohibiting the lobbying contracts vis—à-vis the former staff is twice the duration as compared to the minimum, and so on. I won’t go into the details of the restrictions now, but the Board had to weigh and find the right balance between the interests of the public, on the one hand, and the rights of a person to pursue their work. An important question was raised among others: who would monitor and ensure the implementation and enforcement of this decision? I would like to note that the decision by the EBA Board of Supervisors includes a provision on implementation. The restrictions that were imposed will be communicated to the EBA staff and they will be required to report to the Chairperson on any contacts with Mr Farkas after he has left the service of the EBA. Furthermore, the EBA is subject to an obligation to inform the public each year on the implementation of the prohibition on lobbying and advocacy, including a list of the cases assessed. Mr Farkas, as any other active or former staff member, is subject to the Staff Regulations and disciplinary proceedings could be opened against him in case of breach, including after his departure from the EBA. Were the EBA Board of Supervisors or the European Anti-Fraud Office (OLAF) to become aware of evidence of failure, following an administrative investigation and eventual disciplinary proceedings, Mr Farkas could be subject to disciplinary measures, as defined in the Staff Regulations. I think this explains that not everything is left to chance. There are provisions in place that should ensure that these restrictions are properly implemented. To conclude, let me reiterate that the Commission ensures – or tries to ensure – that high ethical standards are in place across all the agencies by having in place a harmonised legal framework. However, it is the responsibility of, in this case, the EBA Board of Supervisors to implement this legal framework by taking decisions independently on post-employment restrictions, in accordance with its founding regulation and with the Staff Regulations. It is also the responsibility of the EBA Board of Supervisors to ensure that these decisions are properly monitored and their implementation enforced. Finally, the Commission is always seeking to improve the existing framework. The existing ethical framework is the subject of constant review. We are looking for possible improvements, including, as I mentioned earlier, by setting up an independent ethical body and, I repeat, we are looking forward to close collaboration with the European Parliament, the European Ombudsman and other institutions in this process.