Financial lobby

Corporate Europe Observatory has demanded that the President of the European Central Bank Mario Draghi leaves the ‘Group of Thirty’, a club of central bankers and chief executives from private banks. What is the case about?

The EU Ombudsman has launched an inquiry into European Central Bank President Mario Draghi’s membership of the Group of Thirty (G30), following a complaint made by Corporate Europe Observatory (CEO) last month. The Ombudsman case on Draghi's G30 membership has made headlines across Europe (and beyond). Will this make the ECB answer the questions that CEO has been asking since November 2011? And will Mr. Draghi now step down from the G30?

Corporate Europe Observatory has filed a formal complaint with the EU Ombudsman concerning European Central Bank President Mario Draghi’s membership of a banking lobby groups. As the European Council prepares to give the European Central Bank considerable influence on more issues of direct interest to private banks, the complaint calls into question Mario Draghi’s independence and suggests his involvement in the corporate bankers group creates a conflict of interests

The banking lobby in the European Union is waging a successful battle against regulation that will undercut international Basel rules. They’re succeeding in putting competition and the right to risky bets before concerns for financial stability.

The financial and economic crises have revealed how entrenched the power of banks is in the European Union. In this EU in Crisis essay, Corporate Europe Observatory’s Kenneth Haar describes the wave of financial regulation that was set in motion with the crisis of 2008. By now most of this regulation has been passed, and there’s plenty of evidence to show that the banks are being let off the hook. Looking back, banking lobbyists can conclude that decision makers have practically fallen over themselves to serve the banking industry’s interests.

To the Executive Board of the European Central Bank Concerning the President’s membership of the Group of Thirty. This letter is to complain about the about the European Central Bank’s response to my letter (on behalf of Corporate Europe Observatory) about ECB President Draghi’s membership of the Group of Thirty which failed to adequately address the concerns I raised.

Crucial decisions “to save the Euro” and “to save Greece” were made at the Euro Summits in July and October 2011. While the decision making process was taking place, the press reported several informal negotiations between EU leaders and the banks, mostly represented by the Institute of International Finance (IIF). What was exactly the role of this lobby group in the final decisions? And what did it get from the deal?

Dear Mr. Draghi.

I am writing to you on behalf of Corporate Europe Observatory in connection with your new role, following the change of presidents at the European Central Bank.  Our attention was drawn to both your and Jean-Claude Trichet’s membership of ’the Group of Thirty’. We find this membership  deeply concerning and believe it may be  in breach of the Treaty.

Three MEPs were recently caught red-handed after tabling amendments to EU-legislation in return for money. This was a major scandal. But Corporate Europe Observatory has found that it is still standard practice in the Parliament for lobbyists to draft amendments – as this investigation into the Parliament's work on financial reform reveals.

The financial lobby has exploited the opacity of financial markets to avoid curbs on speculation against EU member state economies. The lack of precise information on what happened with Greek, Irish, Portuguese and Spanish bonds might – ironically – have protected the speculators from tighter regulation.

How investment fund lobbyists used SMEs as a front to lobby MEPs

In the battle over the regulation of hedge funds and private equity funds currently taking place in Brussels, hundreds of small and medium sized enterprises (SMEs) surprisingly spoke out in April in support of the financial lobby’s attempt to stave off regulation. But behind the scenes, a lobby organisation, the European Venture Capital Association – representing large and controversial investment funds was pulling the strings.

Industry lobbying has been a major factor in the US and Europe, with the finance sector lobbying to block tighter regulation of the financial markets. This guided tour of the Brussels EU Quarter highlights the number of financial lobbyists at work there.