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

The Staff Regulations and the implementing rules adopted by the Commission apply to all EU agencies, unless agencies adopt their own implementing rules which are validated by the Commission. At the same time, each agency holds its independence, since they are separate legal entities. This means that agencies are independently responsible for the implementation of the rules, compliance and for adopting individual decisions concerning their staff and this also concerns Mr Farkas.  The decision concerning Mr Farkas was taken by the EBA Board of Supervisors, which is the decision-making body to decide on and enforce post-employment restrictions. The members of the board with voting rights are the heads of the national public authorities, competent for the supervision of credit institutions in each Member State. The Commission participates in the board meetings with only one representative, without voting rights. This mode of governance is the choice of the legislator.  As mentioned, the EBA, like all EU institutions, is bound by the Staff Regulations. These contain a comprehensive ethical framework. The latest Staff Regulations – reform of 2013 – reinforced this framework in the area of post-employment restrictions. More specifically, the Staff Regulations require that potential conflicts of interest are assessed upon recruitment or integration after a period of leave on personal grounds. These provisions explicitly address the issue of lobbying in a democracy during leave on personal grounds or after having left the institution. With particular regard to post-employment activities, the assessment is made on a case-by-case basis. Prohibitions or restrictions must be well reasoned and proportionate. For each case there must be appropriate balance between the need to ensure the integrity of the work of the institution, through temporary prohibitions and restrictions and, on the other hand, the need to respect the former staff members’ right to engage in work and to pursue a freely chosen or accepted occupation, as enshrined in the Charter of Fundamental Rights of the European Union.  On these matters, the Commission has in place implementing rules which are regularly revised to reflect recommendations, in particular from the European Parliament, the European Ombudsman and the European Court of Auditors. This was the case when the new decision on outside activities and assignments and occupational activities after leaving the service was adopted in 2018.  I would also like to underline the importance of transparency. Since 2014, the Staff Regulations provide that each institution must publish annually information on the implementation of the prohibition for former senior managers for one year to engage in lobbying or advocacy vis-à-vis staff of the former institution on matters for which they were responsible during the last three years in service. The Commission has just published its fifth report. This is part of the Commission’s overall efforts to achieve greater transparency, which also includes publication of Commissioners’ and senior staff meetings and updates to the EU transparency register, to name just a few.  Over the recent years, the Commission has indeed closely cooperated with the European Ombudsman in the framework of her inquiries looking into the revolving doors phenomenon. When closing its second inquiry in February last year, the European Ombudsman confirmed that the Commission has high standards in the area of ethics and transparency and encouraged the Commission to continue to lead by example. In July last year, the European Court of Auditors issued a report on the ethical framework of the European Parliament, the Council and the Commission. The Court of Auditors’ audit confirmed that, to a large extent, the audited institutions have established adequate ethical frameworks and that the Commission is well advanced in this matter. The new College marks a new momentum to address ethical challenges, together with new ideas and determination. In this respect, Vice-President Jourová has been entrusted by the President to work with the European Parliament and the Council on setting up an independent ethics body common to all EU institutions. Cooperation with the other institutions in this process, of course, is key to making this a success.