If you don’t engage with Brussels, it will engage with you

LNG in Krk, the Pelješac Bridge, the Adriatic-Ionian pipeline, and even the vast billions of euros within the National Recovery and Resilience Plan. All of this is the result of actively advocating for Croatian interests in Brussels, or lobbying. However, lobbying, at least from our Croatian perspective, has a negative connotation. It is associated with corruption and other dishonest practices, and the reason is simple – there is no regulation. Croatia is one of the few countries in the EU that does not have a lobbying law, while in the European Union this type of ‘interest advocacy’ is strictly regulated and very transparent. So much so that every lobbyist not only has to be registered in the EU transparency register, but also every meeting they have with representatives of the executive branch in the European Parliament, the European Commission, or the European Council must be recorded and publicly disclosed. However, let’s be realistic, even that does not mean that sometimes someone in the EU does not intentionally or unintentionally ‘slip up’ in their steps. One of the latest such scandals was Qatargate, when Greek MEP and former Vice-President of the European Parliament Eva Kaili was arrested after investigators found more than 150,000 euros in cash under her son’s mattress, allegedly to promote the democratic and social values of Qatari society ahead of the World Cup.

We do not recognize our advantages

It is no longer necessary to explain that Brussels has become one of the most important global centers for lobbyists. After Washington, which has been the lobbying center of the world for years, Brussels has become the central place for lobbying activities on this side of the Atlantic as the political center of the European Union. And it is not surprising, the laws made there do not only concern the operations of all business entities in the Union but also beyond. Especially since the laws recently passed must generally be directly implemented into the legislation of member states, which means that what was previously lobbied in smaller centers is now being advocated on the ground.

It is already known that the largest global technology companies such as Meta, Google, Microsoft, and Tesla have long had offices for their lobbyists very, very close to both the European Parliament and the European Commission, and it is reported that recently lobbyists from OpenAI, the company behind ChatGPT, have moved into a fairly large office space just a few meters from both. This is not surprising considering that by the end of the year, the AI Act, a law on artificial intelligence that is supposed to regulate this technology across the EU, must be passed. In addition to American technology companies, Chinese, Indian, Turkish, Moroccan, and other global companies from all over the world are lobbying in Brussels. All those who can be directly or indirectly affected by EU legislation. Of course, the register of lobbyists contains the most representatives advocating for the interests of European companies and associations, from employers through various industries to unions, sports associations, universities, and even civil society organizations. This means that lobbying is not only for laws; it is also for political priorities, fund contents, and future strategic documents that perhaps no one would even think of without lobbyists…

In Brussels, if you ask people from lobbying circles, as well as Croatian MEPs, the least represented are companies from Croatia. It is as if the awareness of what can be negotiated and how one’s own interest, or the interest of a business entity or community, can be advocated does not exist. The example of Slovenia is always highlighted, which has become a European blockchain hub thanks to active lobbying, while we seem not to recognize our advantages.

– To be honest, since I became a member of the European Parliament, I have not been contacted by a large number of Croatian companies to help them in one way or another. I would even say that I expected greater engagement from our business entities, more meetings with entrepreneurs from Croatia based on which I would try to advocate some of their interests or ideas, especially since I myself have been targeted by lobbyists from other countries and industries – said Croatian MEP Valter Flego. He also states that he lobbies himself and that he has pushed for the Istrian railway to find its place on the list of European railway corridors, which would be a significant success if the proposal passes.

The killer of the industry

Numerous meetings with foreign industrial lobbyists have also been held by Biljana Borzan, especially since the committee she chairs, the Committee on Consumer Protection and Internal Market of the European Parliament, has banned embedded defects and planned obsolescence of products. Due to the new regulation, which the parliament is yet to vote on, Borzan has been labeled the ‘killer of the industry’.

– I have seriously stepped on the toes of those who profit from products breaking down prematurely and being thrown away, so they have been lobbying me intensively in recent months to dilute and weaken these rules. However, it is my job to prevent them from doing so, to fulfill the promises I made to citizens at the beginning of my term, and I will do everything in my power to ensure that happens – said Borzan, who is clearly lobbying for citizens.

For European parliamentarians, members of various committees, rapporteurs, and all sorts of European officials and aides, it is the most normal thing in the world to listen to the other side, that is, to hear what a lobbyist from a group has to say as a counterargument to their proposal. After all, hearing how a proposed law, directive, and strategic document is viewed by the real sector is crucial for the functioning of the European Union. Every decision made by an EU institution is usually lobbied for months. Likewise, it is normal for them to lobby for their interests, the interests of their electorate, to connect within the parliament, and to push their lobbying idea to the end. So why doesn’t the self-aware real sector do the same?

If we are to believe the data from the Transparency Register of the European Union, there are 13,366 accredited lobbyists in Brussels, and according to estimates, their annual budgets can reach up to five billion euros. There are certainly many more on the ground, as not all have accreditation for the European Parliament, which is considered the holy grail of lobbying, since MEPs vote on laws, although lobbying also occurs in the European Commission and the European Council (where heads of government and state are, but where a multitude of secretaries and other aides work directly for prime ministers and to whom it is also ‘profitable’ to reach).

In-house Croatian lobbyists

Although domestic MEPs claim they are poorly in contact with domestic lobbyists and advocates for the interests of the domestic industry, it should be noted that in the past five years, the number of agencies and individuals in the domestic lobbying scene has significantly increased. This speaks volumes about the professionalization of the activity and the development and maturity of our market. There are also more and more in-house lobbyists in certain companies. Membership in the European Union has helped in this development. In other words, after ten years of EU membership, awareness of the impact of Brussels on us as a member state and on our economy is awakening. Thus, in the EU transparency register, in addition to Vlahović Group, Euronavigator, MK Business Advisors, and Alpheus Public Affairs, it is noted that lobbying is being conducted in Brussels for Infobip, Mindsmiths, Rimac Technology, Project 3 Mobility, Končar, Prvo plinarsko društvo, Podravka, Aircash, Medikol Group, DOK-ING, and several other Croatian companies. Some of them are represented by specialized lobbyists who work exclusively for them, so-called in-house lobbyists, while others hire lobbying agencies, professionals.

And how lobbying actually looks, who lobbies for what, how, and in what way, read in the printed or digital edition of the weekly Lider.